Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Equity Investments Hometap Competitors and Alternatives Updated Aug 13, 2024 4-min read Written by Aly Yale Written by Aly Yale Expertise: Home equity, mortgages, real estate Aly Yale is a freelance writer with more than a decade of experience covering real estate and personal finance topics. Learn more about Aly Yale Hometap offers equity sharing agreements for homeowners. These agreements allow you to exchange a share of your home’s equity for a lump-sum cash payment, which you can use as needed. There are a few companies like Hometap offering their own version of an equity sharing agreement and other indirect competitors that offer more traditional home equity financing products. Let’s examine how Hometap compares to its competitors and alternative financing options. CompanyBest for…Rating (0-5) Best HELOC 4.9 View Rates Best for long terms 4.6 Free Quote Best repayment structure 4.5 Free Quote Best multi-product application 4.1 View Rates Hometap competitors As a relatively new product, home equity sharing agreements are only offered by a few companies. Aside from Hometap, three other companies seem to get the most attention. These include Unlock, Unison, and Point. In the following table, we’ll see how these two Hometap competitors compare. UnlockPointHometapOur rating4.5/54.6/54.8/5Credit score550+500+500+Min. investment$30,000$25,000$15,000Max. investment$500,000$500,000$600,000Term length10 years30 years10 yearsPrequalifyPrequalifyPrequalify Unlock Free Cash Estimate Investments from $30,000 to $500,000Only company allowing partial buy out paymentsPrequalify and receive a cash estimate with no impact on your credit score What makes it a good alternative to Hometap? Unlock is a company that co-invests in real estate. It gives homeowners a lump-sum payment for a portion of their home’s future value. The standout feature of Unlock is its partial buy-out option, which allows you to buy out Unlock’s share of your equity in multiple payments rather than with one large payment. This can be especially helpful if you’re short on cash and want to buy back the equity in your home slowly. Unlock also allows for a higher loan-to-value (LTV) ratio and is available in five states that Hometap is not: Colorado, Nevada, Ohio, Tennessee, and Utah. If you’re in one of these states, it may be your best option for tapping your home equity. Point Free Cash Estimate Investments from $25,000 to $350,000Promotional pricing when funds are used for eligible home improvementsNo prepayment penalty What makes it a good alternative to Hometap? Point is another Hometap competitor offering home equity sharing agreements. Homeowners can sell Point a portion of their property’s equity and get a single, lump-sum payment in return. They can put those funds toward any use, including renovations, repairs, or even credit card debt. Point is a good alternative to Hometap for homeowners who plan to use the cash they receive for home improvements. Point says that promotional pricing is available for eligible improvements. Ask a representative about this benefit if moving forward with the company. Point is also available in more states, including Colorado, Connecticut, Georgia, Illinois, Ohio, and Washington D.C. Alternatives to Hometap’s home equity financing solution Outside of home equity sharing, there are other ways to tap your home equity, including home equity loans or home equity lines of credit (HELOC). Let’s look at how two Hometap alternatives compare. FigureSpring EQHometapProductHELOCLoanInvestmentCredit score640+620+500+Min. funding$15,000$25,000$15,000Max. funding$400,000$500,000$600,000PrequalifyPrequalifyPrequalify Figure View Rates Rates between 2.88% and 13.25% APRFunding between $15,000 and $250,000The initial draw will be repaid at a fixed rate The advertised rate includes .75% discount for opting into a Quorum membership and enrolling in autopay. Terms and conditions apply. Visit Figure.com for further details. Figure Lending LLC is an equal opportunity lender. NMLS #1717824 What makes it a good alternative to Hometap? Figure is a financial technology company that offers home equity lines of credit (HELOCs), among other products, including mortgage refinances, personal loans, and banking. It also offers payment solutions for merchants and investment options. When compared to Hometap, Figure’s HELOC has a much higher loan-to-value ratio, which could allow you to tap more of your home’s equity. The company also offers multiple terms (between five to 30 years) compared to settling with Hometap within 10 years. Figure is also available in many states where Hometap is not. A few of the bigger ones include Colorado, Illinois, New Mexico, and Tennessee. Spring EQ View Rates Rates starting at 5.205% APRFunding between $25,000 and $500,000Term lengths between five and 30 years What makes it a good alternative to Hometap? Spring EQ offers a variety of mortgage loans, including refinances, purchase loans, cash-out refinances, and home equity loans. The company also offers insurance through its Spring Select Insurance Agency. Spring EQ offers a higher LTV than Hometap (a whopping 95% vs. 75%) and is much more widely available. It also offers longer terms, which range between five and 30 years. How to know which Hometap competitor or alternative is best There are many Hometap competitors out there—both direct and indirect—which will allow you to turn your home equity into cash. Generally, traditional home equity financing through home equity loans and lines of credit should be your first consideration. These products have been around longer than home equity sharing agreements and are more widely available. However, if you need cash and can’t meet the eligibility requirements for a loan or you can’t afford an additional monthly payment, a home equity sharing agreement may be your best option. If you’re still unsure which option is the best for your goals, talk to a financial advisor or tax professional. They can point you toward the right solution for your household.