Hometap vs. Point [2026]: Which Is Best for Home Equity Investment?

Hometap vs. Point

Here's an overview of how Hometap compares to Point.

	Hometap	Point
Equity amount available	Maximum of $600,000	Maximum of $600,000
Fees	4.5% of investment plus third-party fees, including the cost of a home appraisal	3.9% of the investment subject to a $2,000 minimum. Fees also include third-party fees such as title, appraisal, and recording fees.
Term	Up to 10 years	Up to 30 years
Max loan-to-value ratio (LTV)	75%	73%
Credit score needed to qualify	585	500
Prepayment penalty	None	None
Year founded	2017	2014
	Visit Hometap	Visit Point

What are Hometap and Point?

Both Hometap and Point are home equity investment (HEI) companies. This is a relatively new type of financial product, unlike home equity loans and home equity lines of credit (HELOCs), which have been around for decades. In fact, only a handful of companies currently offer HEIs, though this could change. Since Hometap and Points are two of the most well-known and reputable, it makes sense to consider them if you're considering an HEI.

How do Hometap and Point work?

The general idea of an HEI is that you receive a lump-sum payment now (after your home's value has been assessed and your offer finalized) in exchange for a portion of your home's future value, such as 10% or 20%. This is referred to as the investment offer. Unlike home equity financing, you don't need a specific income to qualify, though HEI companies often set minimum credit scores.

Before the investment term for your HEI is up, which is 10 years for Hometap and up to 30 years for Point, you'll "buy out" the investment by repaying it in full, with fees and appreciation. This most often happens if you refinance or sell the house. Note that the exact repayment amount isn't known since property values can fluctuate, as the Consumer Financial Protection Bureau noted.

Hometap and Point make money if your home increases in value because you exchange a portion of your equity for cash and, therefore, a share of its future worth. However, if your home's value depreciates, these companies would also share in your loss.

Be warned that any HEI carries some risks similar to those of reverse mortgages and loans with balloon payments. If you don't plan ahead for the large payment due at the end of the term, you could find yourself in a stressful situation where you either lose your home or have to sell it. These contracts can also be confusing, which isn't great for figuring out costs or comparing your options.

Is Hometap legit?

Hometap is a legit fintech company offering home equity investment services. Founded in 2017 and based in Boston, Massachusetts, it is BBB accredited with a B+ grade and largely positive customer ratings. As of July 2025, it had originated over 20,000 home equity contracts for a total of more than $2 billion.

Hometap reviews

Hometap reviews are overwhelmingly positive on consumer review platform Trustpilot, where it has 4.8 out of 5 stars. Many reviewers stress the level of customer service as a big pro of working with Hometap, going so far as to praise the specific Hometap agents they worked with.

Is Point legit?

Point is also a legitimate company founded in 2015 and based in California. It's a BBB-accredited business that has an A+ rating and overall positive reviews on the platform. As of June 2025, it had provided over $1.5 billion to homeowners through 15,000 HEI contracts, putting it behind Hometap.

Point HEI reviews

Points has a rating of 4.7 out of 5 stars on Trustpilot, similar to Hometap. But while Hometap has more than 6,500 reviews on Trustpilot, Point's reviews total around 4,800.

Even so, reviewers likewise give positive marks to Point for the level of communication throughout the process as well as the quality of information and guidance provided. Some reviewers note the ease of tracking their progress through the Point dashboard.

Who Hometap is best for

While there are several differences, Hometap distinguishes itself from Point primarily with the timeline on which you're expected to either sell your home or buy out the investment.

Because of this, I think Hometap could be the better choice if you're looking to put money into renovating your home or plan to sell on a relatively short timeline.

You have short-term plans to sell your home

The term for Hometap is only 10 years. While that doesn't mean you must sell your house at the 10-year mark, you will have to make a decision. You can either sell the house before then or buy out the investment by taking out a home equity loan or using your savings.

If you don't plan to move within the next 10 years (such as for work or retirement), I recommend considering your alternatives. Otherwise, borrowing money to buy out the investment could be expensive and challenging.

And like me, you might prefer the peace of mind that comes with more flexibility in case life brings the unexpected. After all, moving isn't cheap, and it could make financial sense to stay put to protect your budget or work on other goals

You want to improve your home in the future

If you have big dreams and plan to renovate your home, Hometap doesn't take any share of the appreciation that has to do with home renovations, according to the home appraiser.

This is good news if you plan to make major improvements with high ROIs. According to the Journal of Light Construction, examples include remodeling your kitchen, replacing your entry doors, or adding manufactured stone veneer.

But remember that you'll still have to pay Hometap its share of any appreciation resulting from other factors, like living in a desirable neighborhood with high demand.

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Who Point is best for

Because of the duration of its terms and its borrowing limits, Point may be a better choice if you hold a greater share of equity in your home — ideally 100% — and aim to stay put for a longer amount of time.

I think it's especially worth considering if you bought your home outright or have paid off your mortgage and have no liens against the property.

You have longer-term plans

Point doesn't require repayment for 30 years, which gives you a much longer timeline to decide what to do with your house. If you don't have short-term, concrete plans to sell your house, Point allows you the opportunity to tap into your home's equity without feeling forced to sell it soon or get another loan.

At the same time, you can still sell the home or refinance before that 30-year mark, so it's not like you're stuck if you need to move for a new job or something else. I prefer this flexibility and would personally choose the longest available term if I were considering an HEI.

You live in an area not covered by Hometap

Neither company is available in all 50 states, so depending on where you live, Hometap might not even be an option. I like that Point has a wider geographic footprint (10 more states). While Hometap is available in 17 states and Washington, D.C., Point is available in 27 states and Washington, D.C.

I recommend checking with both companies to see which works with homeowners in your state. If you have both options, consider the differences and your plans for the home.

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FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

Get Up to $600,000 From Your Home (No Monthly Payments Ever)

Take money out of your home now with no monthly payments.¹ <p>Point partners with and invests alongside the homeowner in the property. Subject to underwriting approval, Point will pay you an upfront, lump sum amount in exchange for a portion of your home’s future appreciation. Future appreciation is based on using the risk adjusted Appreciation Starting Value and calculating any gain or loss based on the final appraised value of your home at the time of exit. Point charges up to a 3.9% processing fee (subject to a $2,000 minimum) and other third party paid closing costs such as appraisal, escrow, and government fees. The term is 30 years. Point will place a lien on your home to secure performance of the underlying agreement. There are no monthly payments or interest accrual. Homeowner’s repayment amount is based on the future value of the subject property at the time of exit, as outlined in the underlying agreement.</p>

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4 key differences between Point vs. Hometap

While their basic services are very similar, there are some distinct differences between Hometap and Point. Here's what you should know when comparing these HEI companies.

1. Contract term

When you're deciding on an HEI company, the contract term is important to consider alongside how long you plan to live in the home. Otherwise, you risk the term expiring too soon, which I imagine would cause significant stress unless you have a huge sum of cash ready to repay the company.

Hometap has a 10-year term, which is quite short compared to Point's 30-year term. Point's longer term gives you more flexibility in case something in your life changes. While you might plan to upgrade to a bigger home as your family grows or downsize in retirement, you might end up staying longer than expected.

Winner: Point because you get much more time to decide what to do with your house moving forward.

2. Maximum investment amount

Both Hometap and Point offer a maximum investment amount of $600,000, which is generous enough to suit most homeowners' needs. However, I noticed some important fine print for each provider.

Point limits you to $500,000 if your credit score is less than 600, and you must retain at least 20% equity in your home after the company purchases a stake. Hometap lets you access up to 25% of the value of your home.

Depending on your specific situation, either company's rules can be limiting, though Hometap at least keeps things simpler.

Winner: Hometap because they have slightly more lenient guidelines regarding how much cash you can get.

3. Transaction fees

No matter which HEI company you choose, transaction fees are standard and will come out of your proceeds. That's why I recommend carefully comparing them to minimize your costs and maximize the amount you get.

The fees for Hometap are 4.5% plus closing costs, while Point charges 3.9% plus closing costs with a $2,000 minimum. Since you're going to hit Point's minimum anyway as long as the investment amount is a little over $50,000, it's usually the better deal.

Winner: Point because its fees are a bit lower.

4. Eligibility requirements

HEI companies are known for having more lenient requirements than home equity lenders. So, you might qualify even if your credit or income isn't great, which can be good news when you're in a financial pinch.

Point allows a minimum credit score of 500, while Hometap requires a minimum of 585. This makes Point more accessible if your credit is damaged. However, Point has a lower maximum LTV ratio of 70% compared to Hometap's 75%, which slightly affects how much you can borrow.

Note that neither company has a minimum income or debt-to-income ratio requirement.

Winner: Point, based on its minimum credit score requirement, or Hometap, for its higher allowed LTV ratio.

Other ways to access cash as a homeowner

If Point or Hometap aren't right for you, you can explore other home equity investment companies. Unison, Unlock, and Splitero are a few other legitimate options to look into.

If HEIs don't feel like a good fit at all, here are a few other legitimate options to consider.

Cash-out refinance

You can refinance your home and access additional cash by obtaining a new mortgage for an amount that exceeds your current mortgage balance. This increases the loan amount, but payments might be the same or lower by resetting the 30-year term and locking in a lower interest rate. Speaking with a mortgage broker to show you how to get a loan through a cash-out refi could be the right move if you're a homeowner with a high-interest-rate mortgage.

Take out a HELOC

Home equity lines of credit provide renewable access to your home's equity. HELOCs act like a credit card where draws reduce your available credit, and payments restore your borrowing capacity. Plus, you only pay interest on the amount borrowed. HELOCs could be better than home equity loans if you don't know how much you need to borrow or want the flexibility of interest-only payments.

Use a home equity loan

A home equity loan is a one-time loan against your equity that is repaid over a specified period of time. Interest rates and monthly payments are generally fixed for the life of the loan. A home equity loan could be the best option if you want a simple monthly payment and a defined payoff period.

Take out a reverse mortgage

A reverse mortgage helps homeowners age 62 and older access their equity. If you qualify, you can receive payments based on your home equity and no longer need to make mortgage payments. You repay the loan once you are no longer living in the home.

FAQs

Bottom line

Tapping into your home's equity can help you pay down high-interest debt, make home renovations, pay for college expenses, and more. HEI companies offer a unique approach to tapping a homeowner's equity, but they're not right for everyone (whether you're considering Hometap, Point, or another company altogether).

This solution can be appealing because it offers you access to equity today without requiring monthly payments. But with origination fees starting at 3% and forfeiting a percentage of your home's growth in value, this financing could be an expensive option.

Before you make a decision on Hometap vs. Point, I recommend comparing your different borrowing options to make the right choice. These options may be less expensive with lower upfront costs and without requiring that you share in your home's appreciation.

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  Access your home’s equity without monthly payments
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  Flexible qualification requirements including a minimum FICO score as low as 585
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  Dedicated investment manager to guide you

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  No monthly payments or interest charges
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  No penalties for early repayment
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  Lower credit scores accepted and no income requirements