HomeTap:The Mortgage Startup Who Turns Your Homes Future Shares into Cash HYD October 17, 2022

HomeTap:The Mortgage Startup Who Turns Your Homes Future Shares into Cash

Housing prices which have seen an uptick in pricing this year, are now selling below market value in many major markets. With big players like Evergrande defaulting on 300 billion in debt and real estate giant Zillow selling thousands of homes at major losses, potential investors are scrambling to get in on the action. This time, what’s good for the buyer is also good for the owner, as a new fintech designed to help cash strapped homeowners has finally arrived.

 

HomeTap, a lender based in Boston, and backed by a variety of venture capital firms such as Bain Capital and G20 Ventures, bridges the gap between homeowners and actualized value. The company provides funds to homeowners by doing estimations and sharing in the homes future equity. Traditional lenders provide full service loans to cover the costs of a mortgage, however, HomeTap considers their product as a short term investment versus a loan. Applicants submit documentation in the form of an assessment and are approved based on a variety of factors such as credit score, equity percentage, and resale value. The proceeds are typically used to cover lingering debts such as student loans,credit cards, or other emergency expenses. As the home mortgage matures so does the equity value by which a percentage is allocated to HomeTap after a decade of growth. As growth has skyrocketed over the past two years, the company has already quadrupled their sales and accumulated close to 100 million in funding.

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