Pros, Cons, and How Much It Can Cost You

Most homeowners start looking at Hometap because they need cash and want a way to access it without taking on another monthly payment. Others look into it because they cannot qualify for traditional options like a HELOC or cash-out refinance.

This Hometap review breaks down how the agreement works in plain English, what you can expect to pay, the situations where Hometap can make sense, and the risks that deserve close attention.

Hometap lets you access your home equity for cash without taking on a monthly loan payment. Instead of charging interest, the company provides a lump-sum investment today in exchange for a share of your home's future value.

1. You receive cash upfront today

Hometap provides a lump-sum investment based on a percentage of your home's current value. Investment amounts often fall near 10 percent of a home's value, although eligible homeowners may access up to 25 percent.

The funds can be used for any purpose, and no monthly payments are required during the 10-year term.

The amount deposited into your account will be lower than the investment amount because certain costs are deducted at closing. Hometap charges a 4.5 percent processing fee, based on the amount invested. For example, if Hometap invests $50,000, the fee is $2,250.

Standard real estate closing costs are also deducted. These third-party charges may include the appraisal, title insurance, recording fees, and a closing or escrow fee. Costs vary by state and property, but they often total between $1,500 and $3,000.

Together, these deductions reduce the amount of cash you receive. In a scenario where Hometap invests $50,000, most homeowners typically receive $45,000 to $47,000 after fees and closing costs. All costs are deducted from the investment amount, so there are no out-of-pocket payments at signing.

2. Hometap receives a larger percentage later

When you settle the investment, Hometap receives a percentage of your home's market value at that time. The percentage you owe is always larger than the percentage you received upfront. This is the foundation of Hometap's pricing model.

The home's value at settlement is determined through an independent, third-party appraisal or valuation, not by Hometap.

If a homeowner accesses 10 percent of their home's value today, Hometap's share at settlement follows a tiered structure:

• 15% if you settle in years 0–3
• 17.8% if you settle in years 4–6
• 20% if you settle in years 7–10
• 15% if your home value decreases, regardless of when you settle

These percentages scale proportionally if you access more than 10 percent of your home's value. For instance, accessing 15 percent of your equity would lead to a 22.5 percent share in years 0–3, and so on.

3. You have up to 10 years to settle

A Hometap investment must be settled within 10 years.

You can settle at any point during that period without penalties. Settlement can be done in several ways: selling your home, refinancing through a new loan, or using personal funds.

If you choose to settle early, the process is the same. There are no additional charges for repaying the investment before the end of the term.

If you do not settle the HEI by the end of the term, Hometap may enforce its contractual rights under the agreement, which can include initiating a sale process to recover what it is owed.

To show how a Hometap investment can play out in real life, the following examples use the company's “Moderate Appreciation” setting, which assumes an annual home appreciation rate of roughly 3.9 percent.

For these scenarios, assume a homeowner with a $500,000 property receives a $50,000 Hometap investment (10% of the home's current value). After Hometap's fee and standard closing costs are deducted, the homeowner ends up with $46,000 in cash.

From there, the amount owed depends on the home's value at settlement and the length of time the investment remains outstanding.

Hometap Example: Year 2

After two years of moderate appreciation, the projected home value increases to $539,864. Under Hometap's pricing structure, settling in the first three years requires paying 15 percent of the home's value at that time, or about $81,000.

In this scenario, the Hometap Cap applies. The cap limits the amount owed to what would equal a 20 percent annualized return on the original investment. As a result, the projected payoff is $72,000 instead of the full percentage amount.

Compared with the $46,000 received upfront, the effective annualized cost is roughly 24 percent.

At year five, the projected home value rises to $605,699. The applicable Hometap share for a settlement in years four through six is 17.8 percent, resulting in an amount owed of $107,693.

Relative to $46,000 in proceeds, this is equivalent to an effective annual cost of about 18.7 percent.

By year ten, moderate appreciation brings the projected home value to $733,742. The Hometap share for settlements in years seven through ten is 20 percent, leading to a projected payoff of $146,748.

Measured against $46,000 received upfront, this equates to an effective annual cost of roughly 12.8 percent.

To put Hometap's pricing in context, it helps to compare it with a traditional home equity loan.

While this is not a perfect apples-to-apples comparison — a home equity loan requires monthly payments while Hometap does not — it does illustrate how the effective cost differs between the two approaches.

Using the same $500,000 home example:

A homeowner who qualifies for a $50,000 home equity loan at an 8 percent fixed interest rate on a 10-year term would see:

• Loan amount: $50,000
• Interest rate: 8 percent
• Monthly payment: $606.64
• Total paid over 10 years: $72,796.80

By contrast, under Hometap's moderate appreciation scenario, the projected amount owed after 10 years is $146,748 — an effective annualized cost of about 12.8 percent when measured against the $46,000 the homeowner actually receives after fees.

For many homeowners who consider Hometap, the key issue is eligibility. A home equity loan or HELOC may not be available due to income, credit score, or debt-to-income constraints. In those situations, a home equity investment becomes one of the few ways to access liquidity without selling the home — but the trade-off is a higher effective cost tied directly to future home value.

Hometap doesn't share in any home value changes directly attributable to renovations.

That means if your home value increases by $25,000 or more due to renovations, you can request a renovation adjustment from Hometap to exclude that amount from the settlement calculation

To do this, you'll need to get a new property appraisal. You'll also need to hold onto receipts associated with (and photographs of) the renovations, among other requirements.

Let's look at an example…

Say you have a $500,000 home and get $50,000 from Hometap. Due to market forces, your home appreciates to $609,497 over 10 years. Additionally, you renovate your kitchen, which adds another $50,000 to your home's value, bringing the market value of your home to $659,497.

You would then request a renovation adjustment from Hometap at the time of settlement, provide the necessary evidence, and get your property appraised.

Your $50,000 renovation appreciation would be excluded from the final calculation, so Hometap's share is based on $609,497, not $659,497.

Note that your renovations will not be excluded from the agreement if they do not add at least $25,000 in additional value.

Application Process and Eligibility

The process for getting cash from Hometap is fairly straightforward.

First, you request an estimate to see if you pre-qualify. They'll ask for some information about you and your property. This part can take a few minutes.

Hometap will then prepare an investment estimate using your information. You'll also gain access to a dedicated investment manager to help you throughout the entire process.

If you like the terms Hometap provides, you'll fill out a short online application. After that, Hometap orders an appraisal of your home and uses the appraised value to put together your final offer. 

Accept the offer, schedule the closing, close on the deal, and Hometap wires your funds to your bank account within a few days.

To qualify, your property must be a single-family home, condominium, or a multi-family home with 1–4 units, located in a state where Hometap operates.

Hometap is available in the following states as of November 2025.

• Arizona
• California
• Florida
• Michigan
• Minnesota
• Nevada
• New York
• New Jersey
• North Carolina
• Ohio
• Pennsylvania
• South Carolina
• Utah
• Virginia

Hometap requires a minimum 585 credit score.

How Much Cash You Can Get

Hometap can invest up to 25% of your home's value, with a maximum dollar figure of $600,000. 

To determine your home's value, Hometap sends a third-party appraisal company to your home. Upon settling the investment, Hometap sends another appraiser to determine the final value.

By using third-party appraisers both times, Hometap minimizes the potential conflict of interest of under-appraising the property to claim more appreciation.

Let's look at the highlights and drawbacks of Hometap.

Hometap Pros

• No monthly payment. You receive cash without constricting your budget.
• Straightforward process. The application takes under 10 minutes, and you can receive funding in as little as two weeks.
• 585 credit score requirement. This is much lower than traditional options.
• No upfront credit impact. Pre-qualification does not involve a hard inquiry, though one may be performed following a successful application submission.

Hometap Cons

• 10-year limit. This is shorter than some alternative companies.
• Forced sale risk. If you can't pay back the invested amount when the term is up, you could be forced to sell your home.
• Increased payout from your home's appreciation. If your home substantially increases in value, the cost can still be significant relative to how much you received upfront, though Hometap caps the amount owed at a pro-rated 20% annual return on the investment amount.
• Availability. Not available in all states.

Learn more about these and other considerations in our guide to the pros and cons of home equity sharing agreements.

Hometap has three main competitors.

• Point. Point offers much longer terms of 30 years (which could be positive or negative depending on how you use your funds), with servicing fees ranging from 3% to 5%. You can access up to $600,000, depending on your home's value and your equity. For a deeper dive, check out our detailed comparison of Hometap vs. Point.
• Unlock. Has 10 year (max) terms with a low (500) minimum credit score. Unlock is the only company we've reviewed that allows for partial buyback of your agreement prior to the end of the term. For a deeper dive, check out our detailed comparison of Hometap vs. Unlock.
• Aspire. Aspire offers 15-year agreements. It also sets rate caps that limit your effective annual cost to 12% if you exit within three years and 18% over the lifetime of the contract. Aspire requires a higher minimum credit score of 660 and limits funding to 15% of your home's value, with a maximum of $250,000. The transaction fee is lower than Hometap's at 3%, but Aspire is currently available in just 10 states.
• Splitero. Offers agreements that align with the length of your mortgage — anywhere from 10 to 30 years. Splitero allows homeowners to access up to $500,000 with a minimum credit score of 500. Its annualized return is capped at 19.99%, which is higher than Aspire's or Hometap's structure, but still provides a defined worst-case cost. Splitero charges a 4.99% origination fee, plus third-party closing costs, and is available in a smaller set of states.

Learn more in our roundup of the best home equity investment companies.

Home equity share agreements are a very new way of using your home equity to obtain cash. 

Two thoughts I have are:

1. Using a home equity-sharing company like Hometap can seem attractive because it doesn't require monthly payments. However, as covered above, even with modest home appreciation of only 2% per year, the overall cost of a home equity agreement like Hometap is significantly higher than a home equity loan with an 8% interest rate. If you can qualify for a home equity loan, it's generally a much more cost-effective option in the long run despite the burden of monthly payments.
2. Your mortgage is the one bill that always gets paid monthly, no matter what. This is why, for most households, their primary residence is their largest asset. So, if you give up an equity stake in your home, what's your alternative plan to save money over the long term? Is it a 401(k)? An IRA? An HSA?

Overall, home equity agreements are not the cheapest way to receive a large upfront payment today.

Yet, they offer a means to access needed funds for homeowners who may not qualify for traditional loans due to credit issues or other financial constraints. When considering alternatives like carrying significant credit card debt into retirement, bankruptcy, or losing your home, home equity agreements become more viable options.

Learn more about Hometap.