Hometap is a company that 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.
Hometap has several direct competitors that offer their own version of equity sharing agreements, as well as other indirect competitors that offer more traditional home equity financing products.
Let’s take a look at how Hometap compares to its competitors and alternative financing options.
Hometap competitors
As a relatively new product, home equity sharing agreements are only offered by a select 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 three competitors compare to Hometap.
| Unlock | Unison | Point | Hometap | |
| Min. Credit Score | 550 | 620 | 500 | 500 |
| Min. Income | None | None | None | None |
| Max. LTV | 80% | 70% | 80% | 75% |
| Cash Offer | $30,000 – $500,000 | $30,000 – $500,000 | $25,000 – $500,000 | $15,000 – $600,000 |
| Term Length | 10 years | 30 years | 30 years | 10 years |
| Origination Fee | 3% | 3.9% | 3% – 5% | 3% |
| Buyout Options | Refinance, lump-sum payment, partial payments, or home sale | Refinance, lump-sum payment, or home sale | Refinance, lump-sum payment, or home sale | Refinance, lump-sum payment, or home sale |
| Our Rating | 4.7 | 4.4 | 4.4 | 4.6 |
| Get a Cash Estimate | Prequalify | Prequalify | Prequalify | Prequalify |
Unlock
- Investments from $30,000 to $500,000
- Only company allowing partial buy out payments
- Prequalify and receive a cash estimate with no impact on your credit score
About Unlock
Unlock is a company that co-invests in real estate. It gives homeowners a lump-sum payment in exchange for a portion of their home’s future value.
What makes it a good alternative to Hometap?
The standout with 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.
Pros
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Available in some states Hometap isn’t (Colorado, Ohio, and Tennessee)
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Option to buy out Unlock’s position in partial payments
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Higher LTV allowed
Cons
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Smaller investment range
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Not available nationwide
Unison
- Investments from $30,000 to $500,000
- Available in more states than the other companies listed
- A long term length of 30 years
About Unison
Unison is another home equity sharing competitor to Hometap. Unison excels in its experience—it was the first company to offer a home equity sharing agreement—and its state availability. The company is available in 29 states, more than any of its direct competitors.
What makes it a good alternative to Hometap?
Unison is much more widely available than Hometap. It is available in Colorado, Delaware, Illinois, Indiana, Kansas, Kentucky, Missouri, Nebraska, Nevada, New Mexico, Rhode Island, South Carolina, Tennessee, Utah, Wisconsin, and Washington D.C., while Hometap is not.
Additionally, Unison’s investment term is 30 years—significantly longer than Hometap’s, allowing you more time to buy out the investment or sell or refinance the property.
Pros
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Available in states Hometap isn’t (Colorado, Delaware, Illinois, Indiana, Kansas, Kentucky, Missouri, New Mexico, Rhode Island, Tennessee, Wisconsin, and Washington D.C.)
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Longer investment term
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Higher LTV allowed
Cons
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Minimum investment of $30,000
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Higher minimum credit score
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If you sell your home within five years of the investment, Unison will not take a loss if the property declines in value
Point
- Investments from $25,000 to $350,000
- Promotional pricing when funds are used for eligible home improvements
- No prepayment penalty
About Point
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.
What makes it a good alternative to Hometap?
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.
Pros
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Available in states Hometap isn’t (Colorado, Connecticut, Georgia, Illinois, Ohio, and Washington D.C.)
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Higher LTV allowed
Cons
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Smaller investment range
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Minimum investment of $35,000
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A potentially higher origination fee
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 Hometap compares to two companies offering these products.
| Figure | Spring EQ | Hometap | |
| Product | HELOC | Home Equity Loan | Equity Sharing Agreement |
| Min. Credit Score | 640 | 620 | 500 |
| Min. Income | None | None | None |
| Max. LTV | 85% | 95% | 75% |
| Funding Amount | $15,000 – $400,000 | $25,000 – $500,000 | $15,000 – $600,000 |
| Origination Fee | Up to 4.99% | Unknown | 3% |
| Prequalify | Prequalify | Prequalify |
Figure
- Rates between 2.88% and 13.25% APR
- Funding between $15,000 and $250,000
- The 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
About Figure
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.
What makes it a good alternative to Hometap?
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 a single term of ten years from Hometap.
Figure is also available in many states where Hometap is not. A few of the bigger ones include Colorado, Illinois, New Mexico, and Tennessee.
Pros
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Available in many more states than Hometap
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Higher LTV allowed
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More term lengths to choose from
Cons
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The maximum amount you can receive in cash is much smaller than what you can get from Hometap
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You’ll need a higher credit score to be eligible
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Requires a monthly payment
Spring EQ
- Rates starting at 5.205% APR
- Funding between $25,000 and $500,000
- Term lengths between five and 30 years
About Spring EQ
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.
What makes it a good alternative to Hometap?
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.
Pros
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Available in many more states than Hometap
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Higher LTV allowed
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More term lengths to choose from
Cons
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Its funding range is smaller than what’s available with Hometap
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Minimum investment of $25,000 is required
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You’ll need a higher credit score to be eligible
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.