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“House-rich, cash-poor” is, for too many homeowners, more than just an old saying. It’s a daily reality. While their home may be a valuable asset, they often don’t have the money on hand to do major renovations. They don’t have the funds in the bank to allow them to take the next big leap in their lives, like starting a new business, paying for school, or investing in new property.
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While a home can be used as collateral for a loan, that still leaves homeowners heavily burdened by debt. Luckily, a Hometap Equity Investment offers a new way for homeowners to tap into their home’s value: it’s an investment strategy, not a loan.
The premise is simple: Hometap buys a share of your home’s future value. You get money up front and then you have 10 years to settle the investment, on your own schedule, and whenever you like. There are no monthly payments, and Hometap isn’t even guaranteed a return on the money they’ve invested. This is truly an investment in your home, not a sneaky loan, the company says.
The process for getting a Hometap investment in your home is not only simple, it’s transparent and guided. The first thing a prospective Hometap homeowner does is take a quick Fit Quiz to figure out if they qualify. Once that’s handled, an Investment Manager is assigned to the homeowner to take them through the next steps, which include completing a third-party physical appraisal of the home. With that finished, Hometap makes a signing offer, and if the homeowner accepts, funds are wired within four to seven days of signing. And then comes the final, and most important step: the homeowner relaxes, enjoying their new cash infusion and a life free of monthly payments and the stress of looming loan debt.
Is Hometap for you?
Hometap isn’t for every homeowner. You need to be living in a state where Hometap is operating, and you should have a credit score over 500 (although Hometap does not have a FICO credit score requirement). You must have at least 25-percent equity in your home, and Hometap’s investment should be under 30 percent of your home’s total value, or under $600,000 (the maximum amount that Hometap can invest).
Hometap says it is the easiest and most transparent way to tap into your home’s equity. It has no hidden fees, …….
