The company allows homeowners to tap their equity without taking on debt
In an effort to extend its reach to more homeowners across the nation, Hometap has started expanding its business in 12 additional states.
The home investment company announced that it is now offering an alternative financing option to homeowners in Arizona, California, Florida, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, and Virginia.
Hometap releases cash to homeowners – without monthly payments and interest – in exchange for a share of the future value of the property. This way, owners can tap into their current home equity without taking on debt.
One in four homeowners were considered "equity-rich" in the first quarter, according to a report from ATTOM Data Solutions. However, Hometap CEO Jeffrey Glass said that the COVID-19 crisis posed a roadblock to Americans who want to access their home equities.
"Although the US has become increasingly house rich and cash poor, the options for accessing that equity have become increasingly limited as a result of the coronavirus pandemic," he said. "During this unprecedented time in history, Hometap has worked very hard to keep our operations running smoothly, while expanding into multiple new states across the US and continuing to execute on our mission of making homeownership less stressful and more accessible."
Coming on the heels of its $100 million financing round in December, Hometap has entered more states, bringing its total reach to roughly 57% of homeowners nationwide.
"Hometap has proven to be a very attractive alternative financing solution during this turbulent time," Glass said. "I'm thankful that we've been able to not only help homeowners during this time but also expand our geographic footprint and increase the number of properties across the United States in which we can invest."