Hometap is a fractional home ownership service that helps owners access the equity in their home through an investment rather than a loan.
An owner will request an estimate based on their home, and Hometap will provide an initial quote. Hometap will then schedule an appraisal and prepare a final investment offer. The owner can then accept and use the funds for the requested purposes.
According to most sources, Hometap charges a service fee around ~3% of the investment size as well as signing costs. It then will collect additional fees equal to its equity in the home at the end of the 10-year term, when the home is sold, or when the owner refinances.
Hometap makes money by investing alongside an owner and generating revenue from appreciation in the home sale value. Hometap also makes money from service fees related the investment.
Hometap is privately held.