Hometap expands home equity product into six more states

Hometap has expanded its home equity investment product into six more US states, bringing its reach to 27.

The new markets are Alabama, Kentucky, Nebraska, New Hampshire, New Mexico and Wisconsin. The expansion makes the product available to nearly half of US homeowners and marks Hometap's second state rollout this year.

The Boston-based fintech offers homeowners cash in exchange for a share of their home's future value. Customers make no monthly payments during the investment term and can settle the arrangement within 10 years through a sale, refinance or buyout.

The move comes as many homeowners remain reluctant to refinance because their mortgage rates are lower than those now available. Hometap is positioning its product as a way to access home equity without replacing an existing mortgage.

Data from the Urban Institute cited by Hometap showed that 35% of traditional equity-extraction mortgage applications were denied in 2024, most commonly because of credit score or debt-to-income requirements. That has helped create a market for products aimed at homeowners with substantial housing wealth but tighter borrowing constraints.

Demand in the six new states was a factor in the decision. Hometap said nearly 5,000 homeowners in those markets had contacted the company in recent years seeking alternatives to conventional financing.

"Every expansion decision we make starts with homeowner need, and these six states sent us a clear signal," said Jeffrey Glass, Chief Executive Officer of Hometap. "Nearly 5,000 homeowners here reached out over the past few years looking for a flexible alternative to traditional financing. Their situations look different from one state to the next, but the common thread is the same: they've built real equity, and they want a way to use it that doesn't add to their monthly budget."

State pressures

Hometap tied the rollout to different financial pressures across the six states. In Alabama, it said, homeowners have seen equity more than double since 2020, while insurance bills have risen above annual property tax costs for many households.

In Kentucky, homeowners recorded some of the largest equity gains in the country, according to the company, but insurance costs have also increased. Nebraska combines rising home values with high insurance premiums and above-average property taxes, it added.

In New Hampshire, strong home price growth has benefited long-term owners, while younger families face a widening gap between house prices and local incomes, according to Hometap. In New Mexico, the company pointed to growing concerns over insurance availability and affordability. In Wisconsin, it cited rising property taxes, winter energy costs and the loss of some federal energy incentives.

The latest move follows an earlier expansion this year into Georgia, Montana, Tennessee, Idaho and Delaware. Hometap said it has now added 12 states this year and tripled its footprint since 2019.

Founded in 2017, the company said it has helped nearly 30,000 homeowners across the US access housing equity. It has also broadened its products beyond its original home equity investment offering, introducing a dashboard for homeowners to track equity and manage housing-related finances.

Unlike a traditional loan or home equity line of credit, Hometap's arrangement is based on the home's future value rather than monthly debt service. That distinction has drawn interest as borrowing costs have remained high and lenders have kept underwriting standards tight.

Glass said the company has taken a selective approach to entering new markets. "This is what thoughtful growth looks like to us," he said. "We expand where homeowners actually need another option. That means doing the legal, regulatory, operational and homeowner-demand due diligence in every state before we ever launch. Most of the homeowners we talk to are looking for access to their own equity, on their own terms. We're glad to be able to offer that in six more states."