Hometap

Bottom Line: Hometap is a home equity investment (HEI), not a loan — you get a lump sum of cash today in exchange for a share of your home’s future value, with no monthly payments and no interest. It earns a 8.4/10 for homeowners who have substantial equity, want to avoid new monthly debt, and are comfortable giving up some future appreciation and settling within 10 years. Limited state availability and an active Massachusetts lawsuit keep it out of the top tier.

What Is Hometap? (Quick Answer)

Hometap is a Boston-based fintech (founded 2017) that offers a Home Equity Investment (HEI) — sometimes called a home equity agreement or shared-appreciation agreement. Instead of lending you money, Hometap gives you a lump sum of cash, typically up to about 25% of your home’s value (to a maximum of roughly $600,000), in exchange for a percentage share of what your home is worth in the future. There are no monthly payments and no interest or APR. You settle the investment within a 10-year term by selling your home, refinancing, or buying Hometap out with savings or another loan. If your home gains value, you pay Hometap more at settlement; if it loses value, you may pay less. Hometap requires at least 25% home equity, accepts credit scores starting around 585, and operates in about 16 states plus Washington, D.C.

How a Home Equity Investment Differs From a HELOC or Home Equity Loan

This is the most important thing to understand before you apply: Hometap is fundamentally different from the HELOCs and home equity loans it sits alongside.

• A home equity loan gives you a lump sum that you repay with fixed monthly payments and interest over a set term.
• A HELOC is a revolving line of credit you draw from as needed, with variable-rate monthly payments.
• A Hometap HEI gives you a lump sum with no monthly payment and no interest. Your cost is determined later — it’s a share of your home’s value at settlement, not an interest rate. Because of that, in a strongly appreciating market the effective cost can be higher than a traditional loan, while in a flat or falling market it can be lower.

If you want predictable payments and the lowest long-term cost, a HELOC or home equity loan is usually better. If you want cash without adding a monthly bill — for example, if your income is variable or your budget is already tight — an HEI like Hometap can be worth comparing. For a deeper breakdown, see our guide on HELOC vs. home equity loan.

How Hometap Works

1. Get an estimate. You start online with a free estimate. Hometap reviews your home, your equity, and your eligibility — there’s no impact to your credit to get an investment estimate.
2. Receive an investment offer. If you qualify, Hometap makes an offer for a lump sum in exchange for an agreed percentage of your home’s future value. A home appraisal or valuation establishes the starting value.
3. Settle within 10 years. You can settle anytime during the 10-year term, with no prepayment penalty. At settlement you pay Hometap its agreed share of your home’s then-current value.

Hometap at a Glance

• Product type: Home Equity Investment (HEI) — not a loan, no APR
• Cash available: about $15,000 to $600,000 (up to ~25% of home value)
• Monthly payment: None
• Term: 10 years (settle anytime, no prepayment penalty)
• Minimum credit score: around 585 (most approved homeowners are 600+)
• Equity required: at least 25%
• Upfront fee: roughly 3%–4.5% of the investment, plus closing and appraisal costs
• Availability: about 16 states plus Washington, D.C.

Pros and Cons

Pros

• No monthly payments and no interest or APR — it doesn’t add a new bill to your budget.
• More accessible credit requirements (around 585) than most home equity loans.
• Shares the downside: if your home loses value, the amount you owe at settlement can fall too.
• No prepayment penalty — you can settle early at any point in the 10-year term.
• No income or debt-to-income monthly underwriting, and no restrictions on how you use the cash.
• Strong customer-experience reputation (4.8/5 on Trustpilot across thousands of reviews).

Cons

• You give up a share of future appreciation — in a rising market, the effective cost can be high.
• Hard 10-year deadline: you must sell, refinance, or buy Hometap out by the end of the term.
• Available in only about 16 states plus D.C. — not nationwide.
• Upfront fee of roughly 3%–4.5% plus closing and appraisal costs reduces your net proceeds.
• Requires at least 25% home equity, so high-LTV homeowners may not qualify.
• Faces an active Massachusetts Attorney General lawsuit (see below).

Eligibility and Availability

Hometap is more flexible on credit than a typical home equity loan — most approved homeowners have scores of 600 or higher, but the floor is around 585, and there is no monthly-payment underwriting based on your income or DTI. What matters most is your equity: you generally need at least 25%. Eligible properties typically include single-family homes, condos, and certain multi-unit and investment properties, subject to Hometap’s criteria.

Availability is limited. Hometap currently operates in roughly 16 states plus Washington, D.C. — including Arizona, California, Florida, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Utah, and Virginia. Notably, it does not operate in Massachusetts. Because state coverage changes, confirm your state on Hometap’s site before applying.

Fees and Costs

Hometap charges an upfront fee of roughly 3%–4.5% of the investment amount, plus third-party costs such as a home appraisal or valuation, title, escrow, and recording fees. These are generally deducted from the funds you receive. The larger cost, though, isn’t a fee at all — it’s the share of future appreciation you agree to hand over at settlement. Run the numbers for both a flat-market and a rising-market scenario before deciding, because the appreciation share is where an HEI can become expensive.

Settlement: Your Options After (or Before) 10 Years

You can settle the investment at any time within the 10-year term using any of three paths:

• Sell your home and pay Hometap its share from the proceeds.
• Refinance your mortgage and use the proceeds to buy Hometap out.
• Buy Hometap out directly with savings or another financing source (“owner repurchase”).

There’s no prepayment penalty, so settling early simply locks in your cost based on the home’s value at that point.

What to Consider Before You Apply

Two things deserve a clear-eyed look. First, the appreciation tradeoff: because you’re selling a slice of your home’s future value, a strong housing market can make Hometap significantly more expensive than a comparable loan would have been. Model your likely settlement cost before signing.

Second, a regulatory disclosure: in February 2025, the Massachusetts Attorney General filed a lawsuit against Hometap alleging that its product functions like an unfair or deceptive loan and should be regulated as one. As of this review the case is unresolved, and Hometap disputes the claims. It’s worth noting that Hometap holds a 4.8/5 Trustpilot score but a B+ Better Business Bureau rating — a gap partly explained by this dispute. None of this means Hometap is unusable, but it’s a material factor to weigh, and it’s a reason to read your agreement carefully and consider independent advice.

Who Hometap Is Best For

Hometap is best for homeowners who have at least 25% equity and fair-to-good credit, want a lump sum of cash without taking on a monthly payment, and are comfortable giving up a share of future appreciation and settling within 10 years. It’s a poor fit if you want the lowest long-term cost, need a predictable repayment structure, live outside its service area, or expect strong home-price growth. Compare it against the traditional options in our home equity hub before deciding.

Frequently Asked Questions

Is Hometap a loan?

No. Hometap is a home equity investment (HEI), not a loan. There’s no interest, no APR, and no monthly payment. Instead of repaying principal and interest, you settle by giving Hometap an agreed share of your home’s value within 10 years.

What credit score do I need for Hometap?

Roughly 585 or higher, though most approved homeowners have scores of 600+. Hometap weighs your home equity more heavily than your credit, and there’s no monthly-payment income/DTI underwriting.

What states is Hometap available in?

About 16 states plus Washington, D.C., including Arizona, California, Florida, New York, Ohio, Oregon, Pennsylvania, Virginia, and others. It is not available nationwide and does not operate in Massachusetts. Confirm your state on Hometap’s site before applying.

What does Hometap cost?

There’s an upfront fee of roughly 3%–4.5% plus closing and appraisal costs. The bigger cost is the share of your home’s future value you agree to pay at settlement, which can be substantial if your home appreciates.

What happens at the end of the 10-year term?

You must settle by selling your home, refinancing, or buying Hometap out with savings or another loan. You can also settle earlier at any time with no prepayment penalty.

How much cash can I get from Hometap?

Typically between about $15,000 and $600,000, up to roughly 25% of your home’s current value, depending on your equity and Hometap’s assessment.

Best For: Homeowners with 25%+ equity who want cash with no monthly payments