If you're looking for a way to help make your financial goals a reality, you're not alone. An insane amount of homeowners are taking advantage of today's housing market. Gaining equity off your property can be done in a variety of ways, including home loans and HELOCs. But if none of these options sound right for you, you may be interested in a Home Equity Investment.
An equity investment means claiming cash today in exchange for a portion of the future value of your home. This means you'll get the capital you need without being weighed down by risky loans or monthly payments. If choosing to invest in the property you already own sounds like a solution that would work for you, you need to know about Hometap Equity Investment.
What Is a Hometap Equity Investment?
Hometap isn't a loan agency. They're not loaning money. They're investing alongside homeowners just like you by providing cash when you need it and then participating in the proceeds once you sell your home. To put it simply, a Hometap Equity Investment is designed to pay homeowners the equity they've accumulated on their property without having to take out a loan. Because Hometap is not a lender, you make zero monthly payments. And Hometap doesn't get a guaranteed return on the money invested in your property. Hometap is the perfect way to finance your life without having to worry about increased monthly payments.
Each Hometap Home Equity Investment lasts for 10 years. When the 10 years is up, you can choose to buy out the investment with your own savings, take out a loan, or sell your home to return Hometap's investment. This process is called Settling the Investment.
How Does It Work?
Hometap Equity Investments are totally transparent and easy to do. It all starts with getting pre-qualified online, which can be done on the Hometap website in a matter of seconds. Next, an Investment Estimate is prepared for your property based on the information provided by you. Then you'll be assigned a dedicated Investment Manager to help you complete the last portion of the process. If everything seems like a mutually beneficial fit and you decide to apply, you’ll fill out a short online application.
In order to move forward, Hometap orders a third-party home appraisal to determine the value of your property. Based on the outcome of the appraisal, combined with the information found in your application, your investment offer will be prepared. From there, you'll review the offer, and once you accept it, you’ll schedule the signing with your Hometap agent. A few days later, you'll be wired the funds in exchange for Hometap's investment. The best part is you're free to use that money whichever way you choose. All you have to do is make sure you sell or settle the investment before your 10-year term ends so that you can payback Hometap's agreed-upon share.
Is Hometap Right For You?
Deciding on a Hometap Equity Investment is a process in and of itself because there isn't a perfect list of property criteria that will make you qualify. That's because each equity investment that Hometap makes is evaluated independently. And if you do qualify, you'll fill out an Investment Estimate so Hometap Investment Managers can acquire the necessary information to guide you along in the process.
Here are some of the qualities that tend to make for a good fit:
- You have a minimum of 25% equity in your home.
- Your single-family home or condo is located in a state in which Hometap is currently operational.
- You have a credit score above 600 (though Hometap does not have a FICO credit score requirement).
- The investment amount you’re looking for is under 30% of your total home value or under $400,000 (this is the maximum amount Hometap can invest. However, the entire process depends on your home valuation and equity percentage, as well).
Find out if Hometap Equity Investment is right for you by starting the process today. With Hometap, gaining equity is as simple as owning a property and getting approved. There's no surprises, fine print, or hidden fees. So what are you waiting for? See if Hometap is right for you by applying today.
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