Hometap reaches $1B in home equity investments 

The company has issued more than 10,000 HEIs since 2017

Boston-based fintech company Hometap has deployed more than $1 billion in home equity investment (HEI) products since its launch in 2017, the company announced on Tuesday. Of the $1 billion total, $730 million has been deployed since 2022, and the company has issued more than 10,000 HEIs in total as of January. 

“This milestone is a testament to the momentum our platform has achieved over the last six years due to the increased awareness of and demand for home equity products, including home equity investments in particular, among both homeowners and investors,” Hometap co-founder and CEO Jeffrey Glass said in a statement. 

“As Americans continue to amass record levels of equity in their homes, they need tools that increase access and reduce stress, particularly as they struggle to manage high interest rates, inflation, personal debt, and other obstacles to reach their long-term financial goals.”

For U.S. homeowners with outstanding mortgages, or some 63% of all homes, equity tied up in real estate jumped by 6.8% year over year as of third-quarter 2023, according to a recent report from real estate analytics firm CoreLogic.

In May 2023, Hometap launched an online portal called the Home Equity Dashboard. The platform offers homeowners a free centralized platform to understand their home equity. It features tools for data visualization of home value, mortgage debt and current equity, as well as estimates for up to 10 years. 

The portal also displays forecasts based on different home appreciation scenarios and maintenance checklists that are broken out by season. And it boasts a home renovation calculator and home service offerings from Hometap’s partner network.

Home equity investments are relatively new products that serve as alternatives to other types of mortgages, such as home equity loans, home equity lines of credit (HELOCs) and cash-out refinances. The borrower is not required to repay the loan via monthly installments. The HEI provider typically recoups its initial investment and takes a percentage of the home’s future value when the property is sold.

Bain Capital, American Family Ventures, Iconiq Capital and Group 1001’s Delaware Life Insurance Co. are some of the partners who help Hometap fund its home equity investments.

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