Hometap vs Point is a choice between two home equity investments that look alike on the surface: each hands you a lump sum now, asks for no monthly payments, and is settled later for an amount tied to what your home is worth. Four facts set them apart: the credit score you need, how long you have to settle, how each company’s share is calculated and which states each one serves.
Our take: Look at Point if your credit score is between 500 and 574, if you want as long as 30 years to settle, or if your home is in one of the eight states (or Washington, D.C.) where Point is an option and Hometap isn’t. Look at Hometap if you want to access more of your home’s value (up to 27%, against a general limit of 20% at Point), if you want a published cap and percentages you could check before you apply, if the home is a manufactured home, or if it is in one of the six states where Hometap is an option and Point isn’t. If both could work for you, request both estimates and compare them in dollars, because the two companies calculate their share in different ways.
Hometap and Point at a glance
Every figure below comes from each company’s own website, read for this update. Both products are called a home equity investment, neither has monthly payments, and both companies place a lien on the home to secure their interest.
Hometap’s minimum amount varies by state, and its maximum depends on your home value and equity percentage. Point shows $30,000 to $600,000 on its product page and notes that a maximum offer is generally 20% of the home’s value.
More: Hometap review, with costs, requirements, pros and cons
More: Point review, with costs, requirements, pros and cons
The differences that decide the outcome
Several rows above are close. These four could change which company you end up with, or what it costs you.
Credit score: a 500 at Point, a 575 at Hometap
Point requires a minimum credit score of 500. Hometap requires a minimum FICO score of 575. If your score falls between those two numbers, Point is the only one of the two worth a look.
Above 575, your score still shapes what Point offers. Point says your credit profile helps determine your maximum offer amount, your HEI percentage and your Homeowner Protection Cap, with better credit generally resulting in more favorable pricing. Neither company has an income or employment requirement, and Point states that it doesn’t request pay stubs or bank statements.
Time to settle: Hometap gives 10 years, Point gives 30
A Hometap Investment has a 10-year term, while Point‘s term is 30 years. With either one you could settle sooner with no prepayment penalty, through a home sale, a refinance or savings.
The shorter clock bites hardest if you plan to stay in the home. With Hometap you’d need a way to settle by year 10, and its percentage steps up after year 5 (in Hometap’s published example, from 16.5% of the home’s value to 18%). Point allows two more decades, though it notes that the amount typically, but not in every case, increases over time as the home appreciates. More time means more room, and it could also mean a larger amount at the end.
Neither term is open-ended. If you haven’t settled by the end of the term, Hometap says it may exercise its right to acquire a percent ownership interest in the property and then work with you to sell it. Point says it may exercise its option under the agreement and become a co-owner with the right to sell the home.
This is the biggest difference between the two, and they don’t measure cost in the same units. Here’s each one in the company’s own terms.
Hometap works on what it calls a share of home value model. You get a percentage of your home’s current value in cash, and Hometap earns an agreed percentage of the home’s value on the day you settle. In its published example, a homeowner who receives 10% of the home’s value settles for 16.5% of the home’s value in years 0 to 5 and 18% in years 6 to 10. Someone who receives 15% settles for 24.75% or 27%. The amount you settle for, called the Hometap Share, is the lesser of that percentage amount and the Hometap Cap. The cap is an 18.5% annual rate, compounded monthly, on the cash you received, or lower if state law requires.
Point works on a share of appreciation model. When you buy back your equity, the amount is what you received plus an agreed percentage of your home’s appreciation, which Point calls the HEI percentage. Appreciation is measured from an Appreciation Starting Value that Point sets below the appraised value (27% below in the example on its product page). Point also calculates a second figure, the Homeowner Protection Cap, from a fixed annual rate compounded monthly, and the lower of the two figures applies. Point doesn’t publish the HEI percentage or the cap rate. Both arrive with your offer and depend on factors such as your credit profile, your equity and the property.
Two practical points follow. Point’s starting value sits below the appraisal, so a home that only holds its value still shows appreciation in Point’s formula. And since Hometap’s percentage applies to the home’s value on the day you settle, its calculator shows a settlement above the cash received even when the home loses 8% of its value. With either company, plan on settling for more than you received.
Each company’s five-year example
Both companies publish an example with the same starting point: a $500,000 home, $50,000 received and a settlement after five years. The appreciation rates they chose differ, so read these as two separate illustrations and not as a matched test.
| Hometap‘s calculator | Home value after 5 years | Hometap Share |
|---|---|---|
| Value falls 8% in total | $460,000 | $75,900 |
| No change in value | $500,000 | $82,500 |
| Value rises 3.25% a year | $586,706 | $96,806 |
| Value rises 8% a year | $734,664 | $121,220 |
This comes from Hometap’s public pricing calculator with California selected. Each row is 16.5% of the home’s value, which is below the Hometap Cap at five years (about $125,207 by the published formula). The calculator assumes a well-qualified homeowner with at least 25% equity in the home. Fees aren’t included.
| Point‘s example | Sale price after 5 years | Amount Point receives |
|---|---|---|
| Value falls 6.25% a year | $362,100 | $49,200 |
| Value rises 3.5% a year | $593,800 | $114,300 |
| Value rises 5.5% a year | $653,500 | $119,200 |
This comes from the example on Point’s product page, which uses a starting value of $365,000 for the same $500,000 home. Point’s page describes the cost in both rising scenarios as capped. Your HEI percentage and cap could differ. Fees aren’t included.
The closest match is ordinary appreciation. Hometap’s calculator shows $96,806 at 3.25% a year, and Point’s example shows $114,300 at 3.5% a year. In a decline the two behave differently. Hometap’s calculator still shows $75,900 after an 8% drop, which is more than the $50,000 received. Point’s example comes in just under $50,000, but only after the home loses 6.25% of its value every year for five years, and Point itself says that paying less than you received isn’t typical.
None of these figures is a quote. Hometap’s percentage depends on how much of your home’s value you access and when you settle, while Point sets its percentage and cap for each homeowner. What counts is your own two estimates, side by side, in dollars, for the year you expect to settle.
Get an estimate from Hometap and see your offer from Point, then set them against each other for the year you expect to settle.
Fees, and how much you could access
At both companies, fees are deducted from your proceeds rather than paid upfront. Hometap‘s fee is 4.5% of the Investment amount, up to a maximum of $20,000. Point‘s processing fee is 3.9%, with a $2,000 minimum. Which one is lower depends on the amount.
| Amount received | Hometap fee | Point fee |
|---|---|---|
| $30,000 | $1,350 | $2,000 |
| $50,000 | $2,250 | $2,000 |
| $100,000 | $4,500 | $3,900 |
| $300,000 | $13,500 | $11,700 |
| $600,000 | $20,000 | $23,400 |
This is our arithmetic from each company’s published fee: 4.5% up to $20,000 at Hometap, 3.9% with a $2,000 minimum at Point. Point’s site also describes its fee as up to 3.9%. Third-party costs come on top at both.
Third-party costs vary by state and county. Hometap’s published examples are an appraisal of $60 to $299 if it is done virtually or $500 to $1,000 in person, a $650 closing fee (not charged in Pennsylvania), title insurance of $30 to $3,075 and government recording and transfer charges of $370 to $1,000. Point lists an appraisal of up to $1,000, title and government fees of $1,000 to $1,600, a credit report fee of $40 to $50 and a $12 flood certification, plus a $130 counseling fee if a session is required and $199 for each lien payoff it processes, up to $597. Point also lists costs when you exit: a reconveyance fee of $40 to $70, a recording fee of $50 to $250 and possibly another appraisal of up to $1,000.
On how much you could access, Hometap’s limit is higher. Hometap invests up to 27% of a home’s value, and Point notes that its maximum offer is generally 20%. On a $400,000 home that comes to $108,000 against $80,000, before either company weighs your equity and existing liens. Both stop at $600,000.
Eligibility: who could qualify with each
Both companies evaluate each home individually, so treat these as published starting points. Meeting them doesn’t mean an approval.
| Requirement | Hometap | Point |
|---|---|---|
| Minimum credit score | FICO score of 575 | 500 |
| Equity | You need at least 25% equity in your home | Usually 27% or more left once Point has invested, and typically 45% if Point is in third lien position |
| Home value | No minimum published | At least $155,000 |
| Property types | Single-family homes, condos, manufactured homes and multi-family homes (1 to 4 units) | Single-family homes, condos, townhomes and 1 to 4 unit properties on lots of 7 acres or less. Manufactured and mobile homes are excluded |
| Second homes and rentals | Vacation and rental properties are eligible | Second homes and investment properties qualify under different underwriting criteria |
| Lien position | Hometap records a lien on the property. A required position isn’t published | It prefers first or second lien position and must hold at least third |
| Income | No income or employment requirements | Does not verify income or employment |
| Bankruptcy or foreclosure | Not published | Waiting periods apply, like two years after a Chapter 7 discharge and five years after a foreclosure |
“Not published” means we didn’t find it on the public pages we read. For Hometap, qualifying also depends on the home being located in an eligible state, among other qualifying criteria, and Hometap notes that its eligibility criteria are subject to change.
Get an estimate from Hometap and see your offer from Point to learn whether you could prequalify.
States served by each company
Hometap makes home equity investments in 27 states. Point serves select regions of 29 states and Washington, D.C., and availability may vary by county. Twenty-one states are on both lists.
Both Hometap and Point: 21 states
- Arizona
- California
- Florida
- Georgia
- Indiana
- Kentucky
- Michigan
- Missouri
- Nebraska
- Nevada
- New Jersey
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Virginia
- Wisconsin
Hometap only: 6 states
- Alabama
- Delaware
- Idaho
- Montana
- New Hampshire
- New Mexico
Point only: 8 states and Washington, D.C.
- Colorado
- Connecticut
- Hawaii
- Illinois
- Iowa
- Maryland
- Minnesota
- Washington
- Washington, D.C.
Point serves select regions, so confirm your address when you prequalify.
Neither company: 15 states
- Alaska
- Arkansas
- Kansas
- Louisiana
- Maine
- Massachusetts
- Mississippi
- North Dakota
- Oklahoma
- Rhode Island
- South Dakota
- Texas
- Vermont
- West Virginia
- Wyoming
See the section on when neither is the right fit to learn who else lists some of these states.
Getting an estimate from each
Neither estimate commits you to anything, and you could request both in a few minutes. If you’d like a rough figure before you share an address with either company, a home equity calculator can show how much cash you could access.
Hometap: estimate, application and offer
- Get an estimate. Enter your ZIP code and a few details about the home. Hometap says you find out whether you pre-qualify in a matter of seconds, with no credit impact.
- Finish the application. It’s online, and Hometap reviews it as part of underwriting.
- Go over your offer. Once you’re approved, an Investment Manager goes through the Investment Offer with you, and a signing is scheduled once you agree on the details.
- Get your funds. Hometap wires the money, typically within four to seven business days after signing. It says the whole process could take as little as 30 to 45 days.
Point: prequalify, apply and close
- Prequalify. Answer a few questions online. Point notes that this takes about 60 seconds and uses a soft credit inquiry that doesn’t affect your credit.
- Apply. Finish the full application, upload your documents (at minimum a valid ID and your most recent mortgage statement, if you have one) and authorize a hard credit inquiry, which Point notes has a temporary effect on your credit score.
- Home valuation and title review. Point arranges a valuation of the home and reviews the title, and works through any title issues it finds with you.
- Sign. You sign the closing documents in person with a notary. A federally required three-day rescission period follows, and you could cancel at no cost during it.
- Get your funds. They arrive by wire or check, typically within three to five business days after the rescission period. Point reports that some homeowners close in as little as three weeks, and that the timeline depends on how fast documents, the valuation and any title issues are resolved.
When neither Hometap nor Point is the right fit
Sometimes neither one is the honest answer.
Your credit score is under 500. That’s below the published minimum at both companies.
You have less than about 25% equity. Hometap asks for at least 25% equity in your home, and Point usually wants you to keep 27% or more after its investment. Paying down your traditional mortgage, or waiting for the home to appreciate, could get you there.
Your state is on neither list. Other home equity agreement companies cover some of the gaps. Unlock includes Vermont and Wyoming, Nada includes Arkansas, Kansas, Louisiana and Oklahoma, and Unison includes Rhode Island. We have no home equity agreement company to point you to in Alaska, Maine, Massachusetts, Mississippi, North Dakota, South Dakota or West Virginia, and in Texas only one company lists the state, so a HELOC or a home equity loan is usually the practical route there.
You’d rather have a credit line. If you have steady income and want to draw funds as you need them and make monthly payments, a HELOC is the product to compare. Figure offers one with an online application, and our HEI vs HELOC comparison goes through the trade-offs.
You want a wider field. Our comparison of home equity agreement companies covers more options, and our home equity guides explain other ways to use the equity in your home.
Hometap vs Point: bottom line
Hometap and Point meet the same need in different ways. Hometap is the shorter arrangement with more of its pricing in public view: a 10-year term, percentages and a cap you could look up before you apply, and access to as much as 27% of your home’s value. Point is the longer one with more decided case by case: a 30-year term, a minimum credit score of 500, and a percentage and cap that arrive with your offer.
Hometap could make sense if your FICO score is 575 or higher, you have at least 25% equity in your home, it’s located in an eligible state, among other qualifying criteria, and you expect to settle within 10 years.
Point could make sense if your credit score is 500 or higher, you want as long as 30 years to settle, and your home sits in one of the regions Point serves.
More: See more home equity agreement companies, compared
Hometap vs Point questions, answered
Neither one is better for everyone. Point is the one to start with if your credit score is between 500 and 574, if you want a 30-year term or if you live in a state where only Point is an option. Hometap is the one to start with if you want to access up to 27% of your home’s value, prefer a published cap and percentages, or own a manufactured home. If you could qualify for both, compare an estimate from each in dollars.
The published minimum at Hometap is a FICO score of 575. Point requires a minimum credit score of 500. Qualifying also depends on your equity, the property and where it’s located, among other criteria.
There’s no single answer, because the two companies calculate their share differently. In each company’s own five-year example on a $500,000 home with $50,000 received, Hometap‘s calculator shows $96,806 at 3.25% yearly appreciation and Point‘s example shows $114,300 at 3.5%. Those are illustrations built on different assumptions, and Point sets its percentage and cap for each homeowner, so compare your own two estimates.
Hometap operates in 27 states, and Point serves select regions of 29 states and Washington, D.C. Twenty-one states appear on both lists. Alabama, Delaware, Idaho, Montana, New Hampshire and New Mexico are Hometap only. Colorado, Connecticut, Hawaii, Illinois, Iowa, Maryland, Minnesota, Washington and Washington, D.C. are Point only.
Hometap‘s term is 10 years, and Point‘s is 30 years. With both, you could settle at any time during the term with no prepayment penalty, through a home sale, a refinance or savings.
With Hometap, the agreed percentage is applied to the lower value, so the dollar amount falls. In Hometap’s calculator, a $50,000 investment on a $500,000 home still settles for $75,900 after five years if the home loses 8% of its value. With Point, if the home’s value falls below the Appreciation Starting Value, Point shares in the loss and you may pay less than you received, which Point notes isn’t typical.
Hometap says its process could take as little as 30 to 45 days, with funds wired typically four to seven business days after signing. Point reports that some homeowners close in as little as three weeks, followed by a three-day rescission period and funds typically within three to five business days.
No. Hometap states that it has no income or employment requirements, and Point states that it doesn’t verify income or employment.
You settle by selling the home, refinancing or using savings. If you haven’t settled by the end of the term, Hometap says it may exercise its right to acquire a percent ownership interest in the property and then work with you to sell it. Point says it may exercise its option under the agreement and become a co-owner with the right to sell the home.
How we put this Hometap and Point comparison together
This comparison is Banks Done Right’s editorial view, built on primary sources. We went through each company’s product pages, FAQs and help center, ran scenarios in Hometap’s public pricing calculator and took Point’s cost example from its product page. The state lists for Unlock, Unison and Nada come from their own websites. We didn’t give either company a score. Where a company doesn’t publish a term, we say so and don’t fill the gap.
Sources
- Hometap: home page, How It Works and its pricing calculator, FAQs, and the pricing overview linked from How It Works (hometap.com)
- Point: Home Equity Investment product page, How the HEI works, and help center articles on eligibility, available states, fees, pricing, the Homeowner Protection Cap, the application process, funding and the end of the term (point.com and help.point.com)
- Unlock: FAQs (unlock.com)
- Unison: FAQs, available states (unison.com)
- Nada: Eligibility (nada.co)
- Figure: Home Equity Line of Credit (figure.com)
Take the next step.
Get an estimate from each and set the numbers side by side.
Keep reading
RoundupTop Home Equity Agreement Companies ComparedCompare costs, minimum credit scores and state coverage for each company.
ReviewHometap Review: What to Know FirstCosts, who qualifies and what to check before you sign.
ReviewPoint Review: What to Know FirstCosts, who qualifies and what to check before you sign.
Terms, pricing and availability change. Check the current terms on each company’s site before you apply.