Hometap Review 2026

Hometap, a Boston-based brand, is a leader in the growing home equity agreement industry — an innovative way for people to tap their home equity for cash without taking out a loan.

Instead of monthly payments, customers promise to give Hometap a portion of their home’s equity at the end of the term. However, it can be a risky deal for many because it requires a balloon payment — a lump-sum repayment — at the end of the term. The amount is not determined at the start of the agreement, so borrowers won’t know how much they owe until the payment is due. Additionally, customers must pay a risk assessment fee, which could end up being more than they’d pay in interest.

CNBC Select likes that, with Hometap, homeowners can leverage their home equity to access cash. This can help them pay off high-interest debt or fund a renovation. We also like that you can have less-than-perfect credit with this product — something that’s much harder to do with a home equity loan or line of credit.

However, Hometap has a spotty customer service record, and its product can be very risky for some homeowners.

Hometap offers home equity agreements, also known as home equity investments or home equity sharing.

With this product, homeowners can get cash by agreeing to give Hometap a portion of the home’s current value and future appreciation at the end of the 15- to 30-year term or when they sell the house.

This payment, due all at once, is the principal amount (what you were originally given) plus a portion of your home’s accrued value, determined by the risk adjustment rate, which can range from 2% to 30%.

If you don’t make that payment, the home equity agreement company could force you into foreclosure, like with a home equity loan or line of credit.

Home equity investments are a small but growing portion of the home equity financing sector. The four largest companies (including Hometap) inked deals totaling $1.1 billion in the first 10 months of 2024, according to the most recent data from the Consumer Financial Protection Bureau.

Hometap provides home equity agreements in 19 states and Washington, D.C.: Arizona, California, Florida, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Utah, and Virginia.

It does not offer home equity loans or lines of credit. Here’s what a homeowner needs to qualify:

Requirements

• Minimum home equity: 25%
• Minimum credit score: 575

Terms

• Minimum investment: $15,000
• Maximum investment: $600,000
• Home appraisal: Required
• Term: 15 to 30 years or when the home is sold

Fees

• Origination fee: 3% to 5% of cash equity advance

On average, Hometap has 4.8 out of 5.0 stars on Trustpilot, based on more than 6,000 reviews — a very high customer service rating on the site. Customers lauded the service as friendly, patient and clear.

However, its record is not perfect. It has a B+ rating from the Better Business Bureau, in part because of an ongoing lawsuit filed by the Commonwealth of Massachusetts in February of 2025. The suit claims that Hometap engaged in “unlawful and predatory practices that targeted financially vulnerable homeowners for profit,” according to the BBB. This BBB score is lower than that of many of Hometap’s competitors, including Point and Flagstar Bank, both of which have A+ ratings from the BBB.

In response to the suit, a Hometap spokesperson told CNBC Select that the company “stands firmly behind the integrity of its products and the homeowners we serve.”

“We believe the claims made by the Massachusetts Attorney General’s Office are without merit, and as a founding member of the Coalition for Home Equity Partnership, we are actively collaborating with Massachusetts legislators to establish a clear regulatory framework for these products,” the spokesperson added.

Customers can call (855) 223-3144 from Monday through Friday, 9 a.m. to 5 p.m., or email the company at hello@hometap.com. The business-hours-only phone line may make it difficult for people who need assistance to reach someone. Many other home equity financing companies offer evening and weekend hours.

Here’s how Hometap stacks up against two major players in the home equity space.

Hometap vs. Point

Between these two home equity investment companies, Hometap is the better option if you want to prioritize paying as little as possible. Point’s risk adjustment fee can reach up to 29%, which is higher than the maximum risk adjustment fee charged by many competitors, including Hometap.

However, Point is available in more states and has a 30-year term, making it ideal for someone who doesn’t plan to sell their home in the near future.

Hometap vs. Flagstar Bank

Hometap and Flagstar both offer home equity products, but Flagstar only offers home equity loans and lines of credit, while Hometap offers home equity sharing agreements exclusively.

For that reason, each has a unique set of requirements, pros and cons related directly to their products offered.

Flagstar’s home equity loans and lines of credit are great for someone who doesn’t want to take on the risks and unknowns associated with a home equity investment agreement. However, borrowers will need to take on new debt, have a credit score of at least 700 and cash available to make monthly payments.

Hometap’s home equity investment product is great for those who know they’ll be able to pay the lump-sum payment due at the end of the 15- to 30-year term, who don’t have a strong credit score, or who prefer not to make a monthly payment.

To apply for a Hometap home equity agreement, you’ll fill out an online request for an estimate. The company will send you a verification email and assign you an investment manager who will be in touch with you about an estimate if Hometap wants to move forward.

Next, you’ll complete an application on the website or over the phone.

Like with all home equity financing applications, you’ll need your government-issued identification, address, social security number, proof of employment, information on any adverse financial events, property information (including deed, homeowners association), your last mortgage statement, proof of homeowners insurance, and other documents to fill out the application.

After that, you’ll have to complete an appraisal. Hometap will then draw up the contract and set a date to sign the documents when you’ll close on the deal.

Hometap is a great option for those with less-than-perfect credit who are confident they can make the lump-sum payment at the end of the term. It also works for those willing to pay more in fees and interest than they would for a home equity loan or line of credit in exchange for no monthly payments.

However, if you are not sure when you’ll sell and don’t know whether you’ll have the money on hand to make the lump-sum payment at the end of the term, you should probably go with a traditional home equity product.

CNBC Select reviews mortgage products using a variety of criteria, including average rates, terms, availability, fees, types of loans offered, online experience and customer satisfaction. 

Additionally, we incorporate findings from independent sources, including lender scores from the J.D. Power mortgage origination and servicing surveys and ratings from the Better Business Bureau.

For home equity loans, we review rates, repayment terms, the amount of equity required and the minimum and maximum loan amounts available.

We also consider requirements for credit scores, debt-to-income ratios and combined loan-to-value ratios.

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