Hometap vs Point is a choice between two home equity investments that look alike on the surface: each gives 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 separate them: 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 first 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 is not. Look at Hometap first 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 is not. 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 vs 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, both come with no 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 says a maximum offer is generally 20% of the home's value.
More: Hometap review: costs, requirements, pros and cons
More: Point review: costs, requirements, pros and cons
The differences that change the outcome
Several rows above are close. These four are the ones that could change which company you end up with, or what it costs you.
Credit score: 500 at Point, 575 at Hometap
Point requires a minimum credit score of 500. Hometap requires a minimum FICO score of 575. If your score sits between those two numbers, Point is the only one of the two to look at.
Above 575, your score still shapes a Point offer. 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 does not request pay stubs or bank statements.
Time to settle: 10 years at Hometap, 30 at Point
A Hometap Investment has a 10-year term. 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 matters most if you plan to stay in the home. With Hometap you would 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 is more room, and it could also mean a larger amount at the end.
Neither term is open-ended. If you have not 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 do not measure cost in the same units. Here is each one in the company's own terms.
Hometap uses what it calls a share of home value model. You receive 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. A homeowner 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 uses 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 does not 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. Because Point's starting value sits below the appraisal, a home that only holds its value still shows appreciation in Point's formula. And because 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 own 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 are different, 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 |
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 are not 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 |
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 are not included.
The closest pair 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 is not 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, and Point sets its percentage and cap for each homeowner. The comparison that 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 compare both for the year you expect to settle.
Fees and how much you could access
With 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 |
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 are extra at both.
Third-party costs come on top and 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 says its maximum offer is generally 20%. On a $400,000 home that is $108,000 against $80,000, before either company weighs your equity and existing liens. Both stop at $600,000.
Eligibility: who could qualify for each
Both companies evaluate each home on its own, so read these as published starting points. Meeting them does not mean an approval.
| Requirement | Hometap | Point |
|---|---|---|
| Minimum credit score | FICO score of 575 | 500 |
| Equity | At least 25% equity in your home | Usually 27% or more left after Point's investment, 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, multi-family homes (1 to 4 units) and manufactured homes | Single-family homes, condos, townhomes and 1 to 4 unit properties on lots of 7 acres or less. No manufactured or mobile homes |
| Second homes and rentals | Vacation and rental properties are eligible | Second homes and investment properties are eligible under different underwriting criteria |
| Lien position | Hometap records a lien on the property. A required position is not published | Prefers first or second lien position and must be at least third |
| Income | No income or employment requirements | Does not verify income or employment |
| Bankruptcy or foreclosure | Not published | Waiting periods apply, such as two years after a Chapter 7 discharge and five years after a foreclosure |
“Not published” means we did not 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 find out whether you could prequalify.
Which states each company serves
Hometap makes home equity investments in 27 states. Point is available in select regions of 29 states and Washington, D.C., with availability that 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 operates in select regions. 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 fits for who else lists some of these states.
How to get an estimate from each
Neither estimate commits you to anything, and you could request both in a few minutes. If you would like a rough figure before you share an address with either company, our home equity calculator shows how much cash you could access.
Hometap: estimate, application, offer
- Request 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.
- Complete the application. It is online, and Hometap reviews it as part of underwriting.
- Review your offer. If you are approved, an Investment Manager goes through the Investment Offer with you, and a signing is scheduled once you agree on the details.
- Receive your funds. Hometap wires the money, typically within four to seven business days of signing. It says the whole process could take as little as 30 to 45 days.
Point: prequalify, apply, close
- Prequalify. Answer a few questions online. Point says this takes about 60 seconds and uses a soft credit inquiry that does not affect your credit.
- Apply. Complete 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 says 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 with you on any title issues it finds.
- Sign. You sign your closing documents in person with a notary. A federally required three-day rescission period follows, and you could cancel at no cost during it.
- Receive your funds. By wire or check, typically within three to five business days after the rescission period. Point says some homeowners close in as little as three weeks, and that the timeline depends on how quickly documents, the valuation and any title issues are resolved.
When neither Hometap nor Point fits
Sometimes the honest answer is neither one.
Your credit score is under 500. That is 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 lists Vermont and Wyoming, Nada lists Arkansas, Kansas, Louisiana and Oklahoma, and Unison lists 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 would 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 walks through the trade-offs.
You want a wider field. Our comparison of home equity agreement companies covers more options, and the home equity hub explains the other ways to use the equity in your home.
Hometap vs Point: the bottom line
Hometap and Point answer 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, the home is 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 is in one of the regions Point serves.
More: Compare more home equity agreement companies
Hometap vs Point FAQ
Neither is better for everyone. Point is the one to look at first 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 look at first 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.
Hometap‘s published minimum 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 is located, among other criteria.
There is 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 with 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 is available in select regions of 29 states and Washington, D.C. Twenty-one states are 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 applies 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 says is not 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 says 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 does not verify income or employment.
You settle by selling the home, refinancing or using savings. If you have not 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 compared Hometap and Point
This comparison is the editorial view of smarts.co, built from primary sources. We read 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 did not give either company a score. Where a company does not publish a term, we say so and do not 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)
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