We all have goals. Unfortunately, to achieve most of these goals, you’ll need some capital. Some of the most common ways for homeowners to raise cash are with home loans and HELOCs.
However, there are some drawbacks for homeowners who are just looking for a quick way to access cash, like interest and monthly payments. But what if there was a way for you to finance your backyard remodel, pay off debt, or fund education (for you or someone else) without having to take out a new loan? With a Home Equity Investment from HomeTap, you can do just that.
Hometap Home Equity Investments are great because, in exchange for a portion of the value of your home, you get cash now, when you need it. And because you’re investing in your own home, you’ll never be haunted by interest or monthly payments.
Let’s get one thing clear, a Hometap Equity Investment is just that: an investment in the property you already own. It’s not a loan and never will be. You incur zero monthly payments for the duration of the contract you have with Hometap Home Equity. This is because Hometap invests alongside you, the homeowner, in your property by providing you cash for a stake in your property.
Hometap invests alongside you, providing cash today in exchange for a share in your home’s future value. Since Hometap isn’t a lender, there’s no loan and no monthly payments. All you have to do is Settle The Investment within a 10-year timeframe. There are a variety of ways to do this. You can sell your home, buy out the investment with your own savings, or take out a loan when it makes sense for you.
Deciding to pursue a Hometap Equity Investment is simple and straightforward. The process begins with getting pre-qualified online, which can be done on the Hometap website. Based on the information you provide in the pre-qualification, an Investment Estimate is drawn up for your property. Next, Hometap assigns an Investment Manager to help you finish the last part of the qualification process. With their help, you’ll determine if a Home Equity Investment is a good fit for both parties. If so, you’ll finish by filling out a short application online.
In one of the final steps in the process, Hometap sets up a third-party home appraisal to ascertain the value of your home. Then, finally, your investment offer will be prepared based on the results of your appraisal and the information in your application. All you have to do is review the offer, accept it, and then schedule the signing with your Hometap agent. Within a few days, you’ll be wired the capital in exchange for Hometap’s investment in your property.
Because Hometap Equity Investments are evaluated independently, they occur on a case-by-case basis. To determine if you qualify, you’ll fill out an Investment Estimate so Hometap’s qualified Investment Managers can gather the necessary information to begin your Equity Investment process.
Although there is no perfect formula for deciding to go with a Hometap Equity Investment these qualities tend to be a good fit:
- 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)
- You have a minimum of 25% equity in your home
- The investment amount you’re looking for is under $400,000 or 30% of your total home value. (Although, this is the maximum amount Hometap can invest, the entire process depends on a combination of your home valuation and equity percentage)
With Hometap, owning property is the first step to gaining payment-free equity. There will never be any surprises, fine print, or hidden fees because Hometap’s process is transparent. So apply today to learn if a Hometap Equity Investment will be a good fit for your needs.
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