At a glance
| How you repay | Share of your home's total value at settlement |
|---|---|
| Typical cost | 14.1% a year |
| Cost cap | 18.5% a year, compounded monthly |
| Term | 10 years |
See every Hometap termMultiplier, cash available, limits, fees, and credit
| What they call it | Home Equity Investment |
|---|---|
| How you repay | Share of your home's total value at settlement |
| Multiplier | 1.65× if settled by year 5, then 1.8× of total value |
| Cash available | $15K to $600K |
| Max share of home value | 27% |
| Equity you must keep | 25% after funding |
| Fee | Up to 4.5% Fee from a third-party review |
| Cost cap | 18.5% a year, compounded monthly |
| Term | 10 years |
| Minimum credit score | 585 |
| Shares losses if value falls | Yes, you owe a share of a lower value |
How Hometap's agreement works
Hometap invests a percentage of your home's value. At settlement it receives a larger percentage of whatever your home is worth then.
In Hometap's published example for a 10% investment, that share is 16.5% if you settle in years 1 to 5 and 18% in years 6 to 10, multipliers of 1.65 and 1.8.
Hometap's return is capped at 18.5% a year, compounded monthly.
You can access up to 27% of your home's value and need at least 25% equity. The investment has to be settled within 10 years, through a sale, refinance, or buyout.
What Hometap costs
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, settled after 7 years), you would net $94,000 after fees and settle for $236,868: an effective cost of 14.1% a year.
These numbers use a typical example. Your offer's numbers will differ.
See the cost at every growth rate and hold periodEffective annual cost from 0% to 8% growth, settled after 3 to 10 years
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. Rows are yearly home appreciation; columns are when you settle.
| Growth | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| 0% a year | 20.6% | 11.9% | 9.7% | 6.7% |
| 2% a year | 22.7% | 14.1% | 11.9% | 8.8% |
| 4% a year | 22.7% | 16.4% | 14.1% | 11.0% |
| 6% a year | 22.7% | 18.6% | 16.3% | 13.1% |
| 8% a year | 22.7% | 20.9% | 18.5% | 15.2% |
Hometap's agreement must be settled within 10 years, so it isn't eligible for longer holds.
Yearly cost is measured on the cash you actually receive, after the provider's fee and about $1,500 of closing costs. Measured on the full investment instead, it's lower: in our standard example ($100,000 on a $750,000 home, 4% yearly growth, 7 years), Hometap is 13.1% a year instead of 14.1%.
Pros and cons
Pros
- Up to 27% of your home's value, the highest published limit we've seen
- Return capped at 18.5% a year
- A lower multiplier if you settle within five years
- Up to $600,000
Cons
- A 10-year term can force a sale or refinance at an awkward time
- Share-of-value structure means you owe more than you received even if your home doesn't appreciate
- Fee (4.5% per LendEDU) isn't stated on the Hometap pages we reviewed
What Hometap customers say
CFPB complaints: 32 filed against Hometap in the federal complaint database (26 since 2025). Most common: applying for a mortgage or refinancing an existing mortgage (10); trouble during payment process (9); closing on a mortgage (4). Hometap answered 32 of 32 on time.
Customer reviews: read what Hometap customers say on Trustpilot and BBB.
How to read reviews of any HEI company. Star ratings tend to reflect the application and funding experience. The costly part comes years later, at settlement: across the six providers, "trouble during the payment process" accounts for 37 of 131 CFPB complaints, and the CFPB has reported consumers surprised by what they had to repay. Read the oldest reviews and the complaints, not just the star rating.
Who Hometap fits
Worth a look if: You need a larger amount relative to your home's value and expect to settle within 10 years.
Look elsewhere if: You want 20 or 30 years before you have to settle.
Where Hometap is available
27 states, according to its own availability page. Availability can vary by county.
Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Wisconsin
Source: Hometap FAQs.
Regulatory record
State enforcement actions and court cases involving Hometap, confirmed from primary sources.
- Massachusetts attorney general sues Hometap Pending Filed February 2025. Filed in Suffolk County Superior Court against Hometap Equity Partners, LLC and HomeTap Management Holdings, LLC.
Allegations in pending cases are not findings.
Alternatives to Hometap
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. Highlighted: cheaper than Hometap in that scenario.
| Provider | Typical: 4% growth, 7 years | Flat prices: 0%, 7 years | Fast growth: 8%, 7 years | Early sale: 4%, 3 years |
|---|---|---|---|---|
| Hometap | 14.1% | 9.7% | 18.5% | 22.7% |
| CHEIFS | 13.7% | 13.0% | 13.7% | 14.7% |
| Point | 14.3% | 8.3% | 18.9% | 20.2% |
| Unison | 14.7% | 3.5% | 23.1% | 21.6% |
| Unlock | 15.9% | 11.5% | 20.4% | 22.6% |
| Splitero | 15.9% | 11.5% | 20.4% | 22.3% |
Computed from each provider's published terms.
Yearly cost is measured on the cash you actually receive, after the provider's fee and about $1,500 of closing costs. Measured on the full investment instead, it's lower: in our standard example ($100,000 on a $750,000 home, 4% yearly growth, 7 years), Hometap is 13.1% a year instead of 14.1%.
In the typical case, the lowest-cost alternative is CHEIFS at 13.7% a year, versus 14.1% for Hometap. If your home grows fast or you sell early, the ranking can change.
When to pick an alternative instead
- CHEIFS: costs less in the typical case (13.7% vs 14.1% a year); costs less if your home grows fast (13.7% vs 18.5% a year); costs less if you sell within 3 years (14.7% vs 22.7% a year); gives you more time to settle (no end date vs 10); funds larger amounts (up to $2M vs $600K). Hometap vs CHEIFS
- Point: costs less if prices stay flat (8.3% vs 9.7% a year); costs less if you sell within 3 years (20.2% vs 22.7% a year); gives you more time to settle (30 years vs 10); publishes a lower credit minimum (500 vs 585); allows more leverage (an assumed 80% vs 75%); serves more states (32 vs 27). Hometap vs Point
- Unison: costs less if prices stay flat (3.5% vs 9.7% a year); costs less if you sell within 3 years (21.6% vs 22.7% a year); gives you more time to settle (30 years vs 10); allows more leverage (an assumed 80% vs 75%). Hometap vs Unison
- Unlock: publishes a lower credit minimum (500 vs 585). Hometap vs Unlock
- Splitero: costs less if you sell within 3 years (22.3% vs 22.7% a year); gives you more time to settle (30 years vs 10); publishes a lower credit minimum (500 vs 585); allows more leverage (an assumed 80% vs 75%). Hometap vs Splitero
A HELOC, home equity loan, cash-out refinance, or reverse mortgage can also cost less if you qualify. See every option compared.
More on Hometap: Is Hometap legit?
Sources
Hometap: how it works · Hometap: how pricing works · LendEDU: provider comparison
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