If you need cash but don’t want an extra monthly payment, home equity sharing can be an option. These agreements allow you to exchange a portion of your home’s value to an investing company and enjoy a lump sum in return. You’ll then pay back the money later on or when you sell or refinance the house.
Hometap and Point are two options when it comes to equity sharing. Not sure which is the best one to use? We’ll break down how each company compares on terms, investment amounts, ratings, and more.
|View Rates||View Rates|
|Investment amount||$15,000 – $600,000||$25,000 – $350,000|
|Investment amount||Investment amount|
|$15,000 – $600,000||$25,000 – $350,000|
|Term length||10 years||10 years|
|Term length||Term length|
|10 years||10 years|
|Min. credit score||500||580|
|Min. credit score||Min. credit score|
|State availability||AZ, CA, FL, MI, MN, NJ, NV, NY, NC, OH, OR, PA, SC, UT, VA, WA||CA, CO, MA, NJ, NY, OR, UT, VA, WA, DC|
|State availability||State availability|
|AZ, CA, FL, MI, MN, NJ, NV, NY, NC, OH, OR, PA, SC, UT, VA, WA||CA, CO, MA, NJ, NY, OR, UT, VA, WA, DC|
|See the best home equity investments.|
In this comparison:
- Which company has better customer reviews and ratings?
- Which company is more accessible to homeowners?
- Scenarios in which one is better than the other
- Our choice between Hometap and Point
Does Hometap or Point have better customer reviews and ratings?
Customer reviews can help paint a more accurate picture of a company and its offerings. Were past customers happy with the experience? Would they use the company again? We dug through reviews and ratings of both Hometap and Point, and here’s how they measured up.
|Trustpilot||4.9 stars||4.5 stars|
|Better Business Bureau (BBB)||A+||A+|
Ratings are accurate as of February 2nd, 2022.
Customers largely tout Hometap’s stellar customer service and easy process. The negative reviews are few and far between.
With Point, customers again praised the company’s service and staff, but it sounds as if the funding process is slow. One customer (who submitted a five-star review, actually) said this: “Key to the entire process? Patience. The folks at Point do a good job providing an unconventional source of funds, but the process takes quite a while.”
There are also more negative reviews surrounding Point than Hometap, so on that alone, Hometap wins out.
Is an investment from Hometap or Point more accessible?
In addition to reviews, it’s also important to weigh eligibility requirements when choosing which equity sharing company to go with. Both Point and Hometap have different income requirements, credit score minimums, and other standards. With each company not yet nationwide, state eligibility is another important consideration.
Additionally, you’ll want to minimize the hard credit inquiries on your name (these can hurt your credit score), so limiting the companies you apply with is critical. A good first step is to use the below data to determine eligibility and then utilize either Point’s or Hometap’s free quote tools. These simple forms allow you to determine how much money you may be eligible for without completing a full application or credit check.
|State availability||AZ, CA, FL, MI, MN, NJ, NY, NV, NC, SC, OH, OR, PA, VA, UT, WA||AZ, CA, CO, FL, IL, MD, MA, MI, MN, NV, NJ, NY, NC, OH, OR, PA, VA, WA, DC|
|Minimum credit score||500||500|
|Home type||Single-family homes, condos||Single-family homes, condos, properties with one to four units, townhomes*|
|Home value||No requirements||Must be $155,000 or higher|
|Prequalify||Free cash estimate||Free cash estimate|
*No mobile homes, manufactured homes, properties with five or more acres or units, or properties owned by tenancy-in-common LLCs, or co-ops.
Both Point and Hometap are only available in certain states, so use that as your guidepost first. Beyond location, you can also look to your equity stake for help. If you’re a fairly new homeowner and have just 20% to 24% equity in your property, Point is your best bet. If you have 25% or more equity, Hometap can be an option.
Hometap may also be best if you live on a property with large acreage, while owners of townhomes, multi-unit properties should go with Point.
Scenarios in which Hometap or Point is better than the other
If you’re still unsure which option is best for tapping your home equity, we’ve broken out some specific scenarios below. See if you fall into one of these categories and which solution may be best if you do.
- If you need a large investment
- If you need a small investment
- If you want a longer term length
- If you want a company with excellent ratings
- If you want to minimize fees
If you need a large investment: Hometap
If you need a hefty sum of money, look to Hometap. With Hometap, homeowners can get up to $600,000 with their home equity sharing agreement, while Point’s limit is $500,000.
Keep in mind, your home must have the appraised value to support whatever amount you’re looking to borrow. So, if you want $600,000 and Hometap will only lend you 75% of your home’s value, your home would need to be appraised at $800,000.
If you need a small investment: Hometap
If you only need a small amount of cash, Hometap may be best. The company offers between 5% to 25% of your home’s value, so on a $200,000 home, that’d be $10,000 on the low end. With Point, the minimum amount of equity you can tap is $25,000.
If you want a longer term length: Point
Hometap equity investments must be settled within ten years, meaning you’ll need to either buy out Hometap’s portion of your equity, refinance, or sell your home in that period. With Point, homeowners have up to 30 years to settle their agreement.
If you want a company with excellent ratings: Hometap
As you can see in the ratings table above, both Hometap and Point have fairly good ratings across the board. But when you dig deep into the reviews, Hometap’s tend to come out on top. The company also has fewer negative reviews from our analysis.
If you want to minimize fees: Hometap
Both Point and Hometap charge various fees for their investments. Hometap’s sits at a flat 3% of your investment amount. In comparison, Point’s varies from 3% to 5%, making Hometap the winner on this front. Other fees vary based on your area’s cost appraisal, title, and other third-party services.
The fees come out of your lump-sum payment in both cases, so no upfront money is required.
Which company is our choice between Hometap and Point?
Hometap wins out against Point due to its flexible investment amounts, loose credit score requirements, and excellent customer reviews.
Remember that Hometap may not be available in some states (in fact, Point currently serves more states than Hometap), so consider this when deciding which company to apply with. Need more information to fuel your decision? Our Hometap review and Point review can help.