Hometap vs Point: Which Home Equity Investment Should You Choose?

Hometap and Point are two of the most prominent home equity investment companies in the U.S. Both give you a lump sum of cash in exchange for a share of your home's future value — but they differ meaningfully in terms, fees, state availability, and who they're built for. This guide compares them directly on every dimension that matters.

Quick Comparison: Hometap vs Point

How Home Equity Investments Work (Brief Primer)

Before diving into the comparison, a quick recap of how HEIs work:

• You receive a lump sum of cash today — typically 10–25% of your home's current appraised value
• In exchange, the investment company receives an equity percentage of your home's future value
• You make no monthly payments and pay no interest during the term
• At the end (through sale, refinance, or buyout), you pay the company their equity percentage of your home's current value at that time

The core cost is not an interest rate — it's the equity share. If your home appreciates significantly, the company benefits. If it stays flat or declines, your cost is minimal. For a full breakdown of HEI costs with worked examples, see our guide on how much a home equity investment costs.

Company Backgrounds

Hometap

Hometap was founded in 2017 and is headquartered in Boston, Massachusetts. It's one of the first companies to bring the home equity investment model to scale in the U.S., and has processed thousands of investments across its operating states. Hometap has raised over $500 million in capital across equity and debt funding rounds, giving it the institutional backing to operate reliably at scale.

Hometap is known for its streamlined digital process, transparent documentation, and strong customer support reputation. It has consistently high ratings on Trustpilot, Google, and the Better Business Bureau. The company focuses exclusively on 10-year terms, which suits homeowners who have a defined horizon for their equity access need.

For a deep dive on Hometap's history, product details, and customer experience, see our full Hometap review.

Point

Point was founded in 2015 and is headquartered in Palo Alto, California. Like Hometap, Point offers home equity investments that provide cash upfront in exchange for future equity. Point differentiates itself primarily through its longer term options — up to 30 years — which reduces the pressure to settle quickly and may appeal to homeowners with longer time horizons.

Point has a broader geographic footprint (~27 states vs Hometap's 17), making it available to more homeowners. It has also raised significant institutional capital and has an established track record in the HEI space. Point's customer reviews are generally positive, though with a smaller review volume than Hometap due to different market focus.

Fees: Breaking Down the Numbers

Origination Fee

Hometap charges a flat 4.5% origination fee. On a $100,000 investment, that's $4,500 deducted from your proceeds at closing.

Point charges up to 3.9% — a slightly lower ceiling. On a $100,000 investment, you'd pay up to $3,900. The "up to" qualifier matters: your actual fee depends on your specific terms, and 3.9% should be your baseline planning assumption.

Point's lower origination fee is a genuine advantage — all else equal, you receive more cash in hand on Day 1. However, upfront fees are a small component of your total cost compared to the appreciation-sharing terms over the full term.

Third-Party Closing Costs

Both Hometap and Point require third-party closing costs: home appraisal ($400–$700), title search and insurance ($300–$1,000), and state recording fees ($100–$500). These costs are similar across both providers and typically total $1,000–$3,000 depending on your state and home value.

Total Upfront Cost Comparison

Point saves you $800–$1,400 in upfront costs on most investment amounts. That's real money — but remember, the equity-sharing terms over the life of the agreement will dwarf this difference.

For the full cost picture, see our dedicated guide on home equity investment costs.

Term Length: 10 Years vs 30 Years

This is the most significant structural difference between the two providers, and it cuts both ways.

Hometap: 10-Year Term

Hometap's 10-year maximum term means you have a decade to settle — either by selling your home, refinancing, or buying out Hometap's stake directly. The 10-year horizon creates a meaningful deadline, which can be either a feature or a drawback depending on your situation.

Who the 10-year term suits:

• Homeowners who plan to sell within 10 years
• Homeowners who expect their financial situation to improve (more income, better credit) and want to refinance and settle within the decade
• Homeowners who prefer a defined end point over open-ended commitment

Risk: If you reach Year 10 and haven't settled — due to declining home values making a sale unattractive, or inability to refinance — you must settle anyway. This creates pressure that Point's longer term avoids.

Point: Up to 30-Year Term

Point's up-to-30-year term gives you far more flexibility. You're not forced to settle within a decade — you can hold the agreement longer if market conditions aren't favorable for a sale or refinance.

Who the 30-year term suits:

• Homeowners who want maximum flexibility on their settlement timeline
• Homeowners who are older and may not sell for 15–20+ years
• Homeowners who are uncertain about their timeline and don't want the pressure of a 10-year deadline

Risk: A longer term means more time for your home to appreciate — which means a larger potential settlement amount. Over 30 years in an appreciating market, the equity-sharing cost can compound dramatically. Running the appreciation scenarios carefully before choosing a 30-year term is essential.

Term Length Verdict

For most homeowners, Hometap's 10-year term is the better fit. The defined timeline encourages planning, and the practical reality is that most homeowners settle HEIs within 5–7 years anyway (through home sale or refinance). Point's 30-year option is genuinely valuable for homeowners who need the flexibility — but that flexibility comes with the risk of a much larger settlement if your home appreciates significantly.

Eligibility Requirements

Credit Score

Hometap requires a minimum credit score of 550. Point requires a minimum of 500. Both thresholds are dramatically lower than traditional lending (HELOCs typically require 680+), making both providers accessible to homeowners with imperfect credit.

The 50-point difference matters for homeowners in the 500–549 range: Point is your only option between the two. For homeowners at 550+, both are available — and you should apply to both to compare actual offers. For more on accessing equity with below-average credit, see our guide on home equity with bad credit.

Required Home Equity

Hometap requires 25% equity in your home. Point requires 30%. This means:

• On a $500,000 home, Hometap requires at least $125,000 in equity (mortgage balance ≤ $375,000)
• On a $500,000 home, Point requires at least $150,000 in equity (mortgage balance ≤ $350,000)

Hometap's lower equity threshold is an advantage for homeowners who haven't built up 30% equity yet. Homeowners who purchased recently or refinanced at high LTV may qualify for Hometap but not Point.

Income Verification

Neither Hometap nor Point requires income verification. This is one of the defining features of HEIs vs traditional lending — your ability to qualify is based on your home equity and credit history, not your current income. This makes both providers ideal for self-employed homeowners, retirees, and anyone with irregular income. See our guide on home equity for self-employed homeowners for more.

Property Requirements

Both providers accept single-family homes, condos, and planned unit developments (PUDs). Neither accepts manufactured homes or investment properties — you must live in the property as your primary residence. Hometap also accepts multi-family properties (2–4 units) if owner-occupied in some states; check their eligibility requirements for your specific property type.

Investment Ranges

Hometap's lower minimum ($15,000 vs Point's $25,000) makes it more accessible for homeowners who need a smaller cash infusion. Hometap's higher maximum ($600,000 vs Point's $500,000) makes it the only option for high-value homes where you need to access a larger percentage of equity.

For homeowners in high-cost markets (coastal California, New York, Seattle) who may have $1M+ homes and want $300,000–$600,000 in equity access, Hometap's higher ceiling is a meaningful advantage.

State Availability

Point has significantly broader geographic availability. If you're in a state where Hometap doesn't operate, Point may be your best HEI option. Both companies are expanding, so check their current state lists directly — availability changes periodically as they obtain state licenses.

Hometap is currently available in: Arizona, California, Florida, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Utah, Virginia, and Washington DC.

If neither Hometap nor Point operates in your state, other options include Unlock (13 states), Splitero (~12 states), and Unison. For a full comparison of all providers, see our best home equity sharing companies ranking.

The Settlement Process

Both Hometap and Point settle through the same three mechanisms:

1. Home sale: When you sell, the company's equity percentage is paid from the sale proceeds before you receive the net amount
2. Refinance: You refinance your mortgage (or take out a new loan), and use cash from the refinance to pay out the company's equity stake
3. Direct buyout: You purchase the company's equity stake directly with cash, without selling or refinancing

Neither Hometap nor Point offers partial buyback — you can't reduce their equity stake over time by making payments. (Unlock does offer partial buybacks, which is a differentiating feature for that provider.)

What Triggers Forced Settlement?

Both providers include triggers that require settlement before the agreement term ends:

• Selling the home
• Taking out a new lien that exceeds certain LTV thresholds
• Foreclosure or bankruptcy (settlement is triggered as part of the legal process)
• Death of the homeowner (the estate must settle)

With Hometap, the 10-year term itself is a hard deadline. With Point's 30-year term, there's no term-end deadline until the 30th year.

Real Settlement Scenarios: Hometap vs Point

Let's model a real scenario. $600,000 home, 20% cash investment ($120,000), 18% equity stake, settling at various points:

Hometap Settlement at Year 5 (4% annual appreciation)

Point Settlement at Year 10 (4% annual appreciation)

These scenarios illustrate a key principle: shorter hold periods dramatically reduce your total HEI cost, regardless of which provider you use. The provider with the "lower fee" isn't necessarily cheaper — the hold period matters more.

Customer Experience

Hometap

Hometap has a well-documented customer experience with thousands of verified reviews across Google, Trustpilot, and the BBB. Common themes in positive reviews: transparency throughout the process, no surprises at closing, clear documentation, and responsive customer service. Negative reviews typically center on the cost — homeowners who feel the equity trade was more expensive than they expected after their home appreciated significantly.

Hometap's homeowner portal (dashboard) is a consistent positive in reviews — homeowners can track their investment, see current equity stake values, and manage their agreement online. For a detailed look at the dashboard experience, see our Hometap dashboard review.

Point

Point has a generally positive customer reputation, though with lower review volume than Hometap. Reviews highlight the process being clear and the team being communicative. Point's longer term option is frequently cited as the reason homeowners chose it over Hometap — the flexibility resonates with homeowners who are uncertain about their timeline. Point's customer service is described as responsive and professional.

When Hometap Is the Better Choice

• You want a higher maximum investment: Hometap goes up to $600,000 vs Point's $500,000
• Your credit score is 550–499: Point requires 500; Hometap requires 550 — wait, actually Point has the lower threshold at 500 vs Hometap's 550. Hometap is better for 550+ homeowners who want the established track record.
• You want a 10-year defined term: If you prefer a clear deadline to plan around, Hometap's 10-year structure is straightforward
• You want the fastest funding: Hometap's ~3-week timeline is faster than Point's 3–5 weeks
• You want the most established provider: Hometap has processed more investments, has a larger review volume, and has a more mature homeowner management platform
• You need a smaller investment: Hometap's $15,000 minimum is lower than Point's $25,000 minimum

For a full analysis of Hometap's strengths and weaknesses, see our guide on whether Hometap is worth it.

When Point Is the Better Choice

• You're in a state where Hometap doesn't operate: Point's ~27-state footprint covers more of the country
• Your credit score is 500–549: Point's lower credit threshold makes it accessible to homeowners Hometap won't approve
• You want maximum term flexibility: If you might want 15–20+ years before settling, Point's 30-year option is the only choice between these two
• You want a slightly lower origination fee: Point's up-to-3.9% vs Hometap's 4.5% saves real money upfront
• You have 30% equity (not just 25%): If you have 30%+ equity and are outside Hometap's states, Point is your primary option

Alternatives to Both

Hometap and Point aren't the only HEI providers. Other options worth considering:

• Unlock: Notable for partial buyback flexibility. If you expect your income to improve and want to chip away at the equity stake over time, Unlock is the only provider that allows this. Available in 13 states. See our Hometap vs Unlock comparison.
• Splitero: Available in ~12 states, 30-year terms. Fee structure is 4.99% + $500–$1,500 flat fee. Less established than Hometap or Point.
• Unison: Focuses on larger home values. Available in select states.

For a full ranking of all providers, see our best home equity sharing companies guide.

Frequently Asked Questions

Is Hometap or Point better for most homeowners?

Hometap is the better choice for most homeowners — it has a stronger track record, faster funding, higher investment ceiling, and a more established homeowner platform. Point is the better choice if you're in a state Hometap doesn't serve, need a credit score below 550, or specifically want a 30-year term.

Can I apply to both Hometap and Point?

Yes, and you should if both are available in your state. Getting competing offers lets you compare actual equity percentages, cap structures, and terms — not just marketing materials. Both offer soft-credit-pull estimates that don't affect your score.

Does Hometap or Point have better rates?

HEIs don't have interest rates. The "rate equivalent" depends on your home's appreciation and how long you hold the agreement. Point's lower origination fee gives it a slight upfront advantage. The appreciation-sharing terms are what matter most for total cost, and those are disclosed in your individual term sheet after applying.

What if my home loses value — do I still owe both providers?

Yes, but the settlement amount will be lower than you received upfront. If your home depreciates significantly, the company's equity stake could theoretically be worth less than the cash they gave you — effectively meaning they shared in the loss. Both providers include floor provisions that are detailed in your agreement.

How long does Hometap vs Point take to fund?

Hometap typically funds in about 3 weeks. Point typically takes 3–5 weeks. Both are significantly faster than a cash-out refinance (which can take 45–60 days). For more options on fast equity access, see our guide on fastest ways to access home equity.

Our Verdict: Hometap

For most homeowners comparing these two providers, Hometap is the recommended choice. The reasoning:

• Faster funding (~3 weeks vs 3–5 weeks)
• Higher investment ceiling ($600,000 vs $500,000)
• Lower minimum ($15,000 vs $25,000)
• More established track record with larger review volume and mature homeowner platform
• The 10-year term is usually sufficient — most homeowners settle within 5–7 years anyway

The only clear cases where Point wins: you're in a state where Hometap doesn't operate, your credit score is below 550, or you genuinely need the flexibility of a 30-year term.

Start with Hometap. Get their estimate (5 minutes, no credit impact), understand the exact equity percentage and terms they're offering, then compare Point if you want a second data point.