Hometap Review 2026: What $60,000 Costs and Who Funds It

What “Hometap” is, and what this page counts

Hometap is a Boston company that pays homeowners cash today in exchange for a share of the home's future value, with no monthly payment. The product is a home equity investment (HEI). Our home equity investment contracts page covers the whole category: the CFPB's January 15, 2025 figures, the state laws and the other companies. This page is about one company and answers the two questions the review pages rank for but do not measure: what does the current contract cost in dollars, and who funds it.

We read three kinds of documents on October 23, 2026. Hometap's own pages (its FAQ as captured by the Internet Archive on October 3, 2026, its pricing page updated June 18, 2026, its June 16, 2026 press release and its How It Works page). The SEC filings of the Hometap vehicles (Form D, the notice of a private offering, and Form ABS-15G, which securitizers file with third-party due diligence reports). And the Massachusetts Attorney General's February 20, 2025 release. A company page is the company's claim; the SEC filings are the company's statements to the regulator.

What Hometap's pages say today, and where they disagree

Hometap's June 16, 2026 release announced “a new two-tier pricing structure”: “those who settle within the first 5 years are subject to a 1.65x multiplier on their initial investment as a percentage of the home's value, and those who settle after year 5 are subject to a 1.80x multiplier.” Its pricing page, updated June 18, 2026, gives the example of a homeowner who taps 10% of their equity: the Hometap Percentage “would be 16.5% for years 0-5 and change to 18% for years 6-10.” At settlement, “You'll always pay the lesser of the Hometap Cap and the Hometap Percentage,” plus “any additional fees charged, such as appraisal and title costs.” The Cap is “an 18.5% annual rate, compounded monthly.”

Hometap's published terms, as read October 23, 2026

Three things on these pages do not line up, and a reader comparing offers should know about them. First, the minimum credit score is 585 on the FAQ and 575 on the How It Works page. Second, the How It Works page's interactive example, which we read through a text extractor on October 23, 2026, still shows a Hometap Percentage of “1.5% of home value Years 0–3,” “1.8% of home value Years 4–6” and “2% of home value Years 7–10” for homes of $500,000 or more, and a cap of “18.5% rate on Investment amount, compounded annually,” while the June 2026 release and pricing page describe two tiers and monthly compounding. We do not know which applies to a given contract signed today; the extractor may have shown a cached copy. Third, an earlier version of the pricing page (text updated June 6, 2025, captured April 11, 2026) said the maximum equity a homeowner could access was 24.99%; the FAQ now says 27% of home value.

A cost calculator on Hometap's own terms

We take a $400,000 home and a $60,000 investment, 15% of value, which sits in the range of the contracts in the securitization samples below (the average investment per sampled contract was $97,635 to $114,938). The terms are Hometap's: Hometap Percentage = 1.65 x 15% = 24.75% of the home's value at settlement within 5 years and 1.80 x 15% = 27% after year 5; the cap is $60,000 grown at 18.5% a year compounded monthly; the owed amount is the lesser of the two. The 4.5% processing fee is $2,700, so the homeowner receives $57,300 before third-party costs, which we leave out and which therefore make the annualized figures slightly low. Annualized cost is the amount owed divided by $57,300, to the power of 1 over the years, minus 1. Hometap's pricing page defines the cap on the “Investment amount”; we apply it to the full $60,000. All of this is our arithmetic from the published terms, not a quote for any contract.

Settling after 10 years: $60,000 on a $400,000 home (our arithmetic)

The 10-year cap of $376,241 never binds in these rows. It would bind only above a home value of $1,393,484, a rise of 13.3% a year from $400,000 (our arithmetic). The cap does more work early:

Settling early: the 24.75% tier against the cap (our arithmetic)

Selling after three years costs about 20% to 22% a year on the money received, because the percentage is applied to the whole home value, not to the cash. Hometap's pages say there is no prepayment penalty; the price of leaving early is in the formula, not in a penalty. The release also says Hometap's all-in cost over 10 years “compares” with a home equity loan or HELOC, on “a full 10-year investment term and assuming average appreciation of 3.25%”, and that costs “may be higher than other financing options under higher appreciation scenarios.” On our numbers, 3.25% a year gives 10.0% a year on the net cash.

Against a HELOC (our arithmetic)

An interest-only HELOC of $60,000 at 7.50% costs $4,500 a year in interest, or $45,000 over 10 years and $105,000 including the principal; at 9.10% it is $54,600 of interest and $114,600 in total. Those rates are our inputs: 7.50% and 9.10% were the 2025 median note rates for other lenders and for Figure in HMDA, as reported in our Figure HELOC review; your rate will differ, and a HELOC has closing costs and a variable rate. The Hometap contract has the same total outlay only at these home values after 10 years: $437,397 (a rise of 0.9% a year) against the 7.50% HELOC, and $507,035 (2.4% a year) against the 9.10% one. Above that, the HELOC is cheaper; below it, the Hometap contract is cheaper, and in a falling market its owed amount falls with the home. The difference the HELOC does not offer is the monthly payment: $375 a month at 7.50% and $455 at 9.10% on interest alone. A reader who cannot make that payment is not choosing between two prices. Our HELOC on investment property page covers the HELOC market and the other rules for rentals; Hometap says it also invests in “vacation and rental properties” and multi-family homes of 1 to 4 units.

For a homeowner aged 62 or older, the third comparison is a reverse mortgage. Our HECM reverse mortgage page reads HUD's principal limit table: the amount available depends on age and the expected interest rate, and a HECM carries insurance premiums and interest instead of a share of the home's value. A reverse mortgage has a legal definition and consumer protections that the Massachusetts Attorney General says a Hometap contract should have had (next section).

The Massachusetts case

On February 20, 2025 the Massachusetts Attorney General filed suit in Suffolk County Superior Court against Hometap Equity Partners, LLC and HomeTap Management Holdings, LLC. The release says the office “alleges” that Hometap often “pays homeowners as little as half the value of the equity it takes,” that the product is “an unlawful reverse mortgage loan,” and that, per a hypothetical in the complaint, a consumer might be led to believe an offered $100,000 would cost “around $155,000 with appreciation and a 3% ‘Hometap fee,’” when the true cost, “if the home appreciates consistent with historical trends, would be more than $311,000.” The release adds that “none of Hometap's ten-year HEI contracts have yet reached their full term.” These are allegations in a pending case; we did not retrieve a docket or Hometap's response (see our home equity investment contracts page for the case and the other states). Two facts from Hometap's own pages: the fee it lists today is 4.5%, not the 3% in that hypothetical, and Massachusetts is not on its list of 27 states.

Who funds the contracts: eleven Form D filings

A Hometap contract pays a homeowner, and Hometap describes it as “investing alongside homeowners”; the capital comes from investors. Form D is the SEC notice a company files when it sells securities privately, and our Form D guide explains each box. EDGAR lists seven Hometap vehicles with Form D filings, 11 notices in total. A fund claiming Section 3(c)(7) of the Investment Company Act sells only to qualified purchasers, a higher bar than accredited investor (see our qualified purchaser page); Section 3(c)(5) is the exclusion for entities that hold mortgages and other liens on real estate.

Hometap vehicles' Form D filings (all 11 on EDGAR, October 23, 2026)

Read the table with its limits. A Form D reports the sales on the day it is filed; most of these notices were filed before any sale and were not followed by an amendment we can see, so Hometap HEI Fund IV (2023) and Fund V (2024) show no sales on the notices we can see. The four vehicles whose latest notice shows sales add up to $451,670,288, and 81 investors (our arithmetic; an investor can be in more than one fund). Nine of the 11 notices list a total offering amount of “Indefinite.” We found no Form D for a vehicle called Fund VI under any Hometap name. What the table does show is a pattern: the money is institutional and concentrated. Investment Partners III reported $175 million from one investor. Fund VII reported $170.4 million from 51, with no non-accredited investors, and both claim qualified-purchaser status. The notices say the general partner or an affiliate “will receive a fee for management services” based “on a percentage of the subscriptions” (Investment Partners II, Fund IV and Fund V) or “customary management fees” (Investment Partners III), without a percentage; Investment Partners II says its totals “include the sponsor commitment of the General Partner and its affiliates.” Nothing on a Form D reveals the return or the investors' identities.

The securitizations: 3,248 contracts reviewed

The second source of capital shows up under a different form. Companies that securitize assets must file the findings of third-party due diligence reviewers on Form ABS-15G (Rule 15Ga-2). Hometap's depositors, Hometap Transaction Asset Purchaser I, LLC (CIK 2024648), Hometap Transaction Asset Depositor CF LLC (CIK 2036595) and Hometap Transaction Asset Depositor CF II LLC (CIK 2156303), have filed seven such reports, each by Maxwell Diligence Solutions, LLC, on the trusts HTAP 2024-1 through HTAP 2026-1. We read the narrative of each and the loan-level schedules of five.

Seven HTAP securitizations: diligence samples

Shares and averages are our arithmetic. The seven samples total 3,248 contracts and $339,530,152 (average $104,535); the seven initial populations sum to 14,853 contracts, though the pools may overlap, so that is not a count of distinct contracts. A grade B on property means a valuation product “did not support” the home value within a negative 10% tolerance in the file. The reviewer found no grade C or D in any of the seven deals. For HTAP 2026-1 the report says the compliance review “did not include regulatory compliance review of disclosures or points and fees tests for Federal, State, and local regulatory requirements as they are not applicable”: the reviewer treated the contracts as outside the federal mortgage disclosure rules, which is the very question the Massachusetts suit and other state laws dispute. This diligence says whether files match Hometap's own guidelines; it says nothing about how the contracts perform. Two depositors also reported, on January 28 and 30, 2026, “No Activity to Report” under Rule 15Ga-1 for 2025, which means no repurchase demands were reported.

Who is in the pools: loan-level statistics

For five deals the exhibits list every sampled contract with state, occupancy, credit score and combined loan-to-value (CLTV). We computed the statistics below from those schedules. The field “Qualifying HCLTV” equals CLTV minus LTV in nearly every contract (414 of 426 comparable contracts in HTAP 2026-1 within 0.01 point), so we read it as the Hometap investment as a share of the home's value; that is our reading of the field, not a label in the report.

Sampled contracts in five HTAP deals (our arithmetic from the Maxwell schedules)

Four things stand out. The borrowers are mid-prime: the pooled median credit score is 677.5 and 16.5% of the sampled contracts have a score of 740 or more. The score is drifting down, from a median of 682 in the September 2024 pool to 666 in the September 2026 pool, with the share under 660 rising from 33.2% to 47.8%. The Hometap investment averages 16.5% of home value (highest 29.98%) and CLTV tops out at 82.5% in every deal. And a few contracts sit below the stated minimum score: in HTAP 2026-1, 27 of 500 show a qualifying score under 585 and 23 under 575, although the reviewer graded 499 of 500 credit files A. We cannot tell whether those are approved exceptions, a different score concept, or older guidelines; the report counts 1 grade B credit exception. Almost all are principal residences: 2,383 of the 2,460 sampled contracts, with 34 investment properties (18 of them in HTAP 2026-1, against 5 in HTAP 2025-3) and 30 second homes.

What a reader can do with this

1. Ask for the dollar payoff, not the multiplier. Hometap's Investment Estimate and Settlement Calculator show the amount owed under different appreciation rates. Compare that to your HELOC quote at the same home value, and check the cap wording in the contract (monthly or annual compounding) against the June 2026 pricing page.
2. Count the fee. Net cash is the investment minus 4.5% (up to $20,000) and the third-party costs. On $60,000 that is $2,700 before about $1,100 to $5,700 of appraisal, closing, title and recording costs at the ranges Hometap lists (our arithmetic: the sums of the low and of the high ends).
3. Pick the home value you fear, not the one you hope for. The contract costs 6.5% a year if the home stays flat and 14% if it rises 7% a year. If you expect to sell within five years, the cost on the cash received is 11% to 22% a year in our examples.
4. Check your state and the case. Massachusetts is not on the state list. Look for a state HEI law (see our category page) and a license under the entity that signs your contract; Hometap's pages name Hometap Equity Partners, LLC and Hometap Homeownership Solutions, LLC.
5. If you are the investor side, a Form D that shows $170 million from 51 investors tells you the capital is institutional; ask any manager for the fund documents, and read our 506(b) versus 506(c) Form D census for how common these exemptions are. A DST sponsor's Form D reads the same way (see DST fees from Form D).
6. If you are 62 or older, price a HECM too: the reverse mortgage has its own federal rules and costs, in our HECM page.

FAQ

This is analysis of public documents, not investment, legal or tax advice. Sources: Hometap FAQ (Internet Archive capture of October 3, 2026), pricing page (updated June 18, 2026), press release of June 16, 2026 and How It Works page (read October 23, 2026); SEC EDGAR Form D and Form D/A filings of Hometap Foundation Fund LP, Hometap Investment Partners II and III, L.P., Hometap Equity Partners, LLC and Hometap HEI Fund IV, V and VII, L.P. (2019 to 2026); SEC Form ABS-15G filings of Hometap Transaction Asset Purchaser I, LLC, Hometap Transaction Asset Depositor CF LLC and CF II LLC (June 12, 2024 to September 30, 2026), including the Maxwell Diligence Solutions narratives and schedules; Massachusetts Attorney General press release of February 20, 2025. Costs are our arithmetic on published terms and are not a quote.