Self-employed Virginia Couple Uses Home Equity to Consolidate Debt

How Paul and Sue Used Their Home Equity to Consolidate Debt and Boost a Business

Virginia homeowners Paul and Sue were looking for a smart way to consolidate their debt, which was distributed among various credit cards and personal loans. Since the couple is self-employed — Paul as a business owner, and Sue as a real estate agent — and don’t have traditional sources of income, they weren’t having much luck as they explored conventional loans and financing options due to the often restrictive application and approval criteria.

“Sometimes, the traditional outlets out there for home lending aren’t so friendly to customers like us,” explained Paul.

Living in the greater Washington D.C. area, Paul and Sue knew that they were sitting on a significant amount of cash in their home that could potentially help them get closer to financial freedom, but hadn’t discovered many great ways to access it thus far. That is, until they found Hometap one day while searching online.

A home equity investment seemed like it could be the perfect fit for them, especially once they learned that Hometap uses a unique model that is designed to provide an accurate financial picture of each homeowner and offer them the funding they need.

“We knew we had a lot of equity,” recalled Paul. “What set [Hometap] apart was really that there was no…red tape there; they have their own formula and calculation for how they help people that have equity in their homes.”

As a former mortgage professional himself, Paul has seen it all, so his standards for service were high — and he was especially impressed with the simplicity and transparency of the Hometap Investment process.

“I thought it was excellent. I’ve been doing this for a while; the process was very easy…” he remarked.

He also highly values communication, so this was a key factor that set Hometap apart from other options for him. “That was the best part,” said Paul.

He appreciated the element of personalization Hometap provides by pairing a dedicated Investment Manager with each homeowner to answer questions and provide support, as well as the focus on keeping homeowners informed throughout the entire experience.

“Really, there was also just one person that we dealt with the whole time. The communication was outstanding from our Investment Manager…every step of the way, [they] kept us in the loop.”

With the cash Paul and Sue were able to access through their Investment, they were on their way to reaching their financial goals and handling their debt in a matter of weeks.

“We were able to get the help that we needed to consolidate debt,” said Paul. “And we really appreciate the help that Hometap gave our family.”

The benefits didn’t stop there, though. Since there aren’t any restrictions on how the money from a Hometap Investment is used, the couple even had some extra funds that they can put toward another goal. “I own my own business, so having some money left over in this economy is going to help to jumpstart that,” said Paul.

And as financial and real estate markets become increasingly unpredictable and costs continue to rise, Paul and Sue appreciate that Hometap Investments are debt-free, so they don’t have to worry about any monthly payments or interest, either. “I think having no payments in this economy and the ability to use your equity…it’s the best option out there to help families,” said Paul. “It’s a pretty cool tool and product to have. I’d say ‘go for it.’”

Find out in less than two minutes if your home qualifies for a Hometap Investment.

*Disclaimers: This homeowner was compensated for providing Hometap with an interview about his Investment experience.

YOU SHOULD KNOW…
We do our best to make sure that the information in this post is as accurate as possible as of the date it is published, but things change quickly sometimes. Hometap does not endorse or monitor any linked websites. Individual situations differ, so consult your own finance, tax or legal professional to determine what makes sense for you.

Hometap gave Butch F. the access to his equity that traditional loans couldn’t

Suddenly Out of Work, Butch and His Wife Turned to Hometap to Stay in Their Home

During the 2008 recession, Butch and his wife were hit hard. Once they were out of work for over a year, the couple started using credit cards to fund day-to-day necessities, such as groceries, electricity, and other bills. However, they knew it wasn’t a sustainable financial strategy.

As responsible homeowners, Butch and his wife always made their monthly mortgage payments on time. They were never late with other monthly bills either, including their credit card and auto payments. However, when their steady income stopped with their jobs, their credit card debt increased faster than normal.

“We knew we had to do something to pay off the debt,” said Butch, who was concerned that all the hard work he and his wife had put into achieving financial well-being could be so easily erased. “We knew if we weren’t able to get a loan, we’d have to sell our home to keep up and maintain that good financial standing.”

Butch initially looked to traditional lenders to secure a home equity loan for their Monroe, North Carolina home. “We couldn’t qualify,” he said. “We had to start putting home repairs on our credit cards.” The necessary home renovations, including a new roof and a new heating and air system, added to the debt stress. “That’s when we started searching for alternatives and found Hometap.”

Already faced with enough stress from their debt, Butch and his wife appreciated the simple process of securing a Hometap Investment.

“The process is similar to a regular home equity loan—appraisal, closing—and was very smooth. Just a few weeks later we got our cash!”

With their Hometap Investment, Butch and his wife were able to pay off their credit card debt and still had cash left over to fix their driveway and yard, adding to their home’s curb appeal. “Our home’s value has already increased,” reported Butch. “And the projects are paid off in full.”

Beyond allowing Butch and his wife to tackle their immediate debt stressors and take the worry of debt away, Hometap was able to play into their long-term financial strategy and goals.

“Max [at Hometap] answered every question, took us by the hand, and walked us through the process. It was a pleasure to talk with someone who was actually interested in helping us and who understood our goals.”

“Now we’re working toward being in a better financial place,” Butch explained. “So, in 10 years when the Hometap term is up, we’ll be able to refinance. We’re sitting here comfortably—not worried, living good.”

Michael used his home equity to expand his medical practice

How Michael Used His Home Equity to Expand His Business

Michael was an established Massachusetts-based physician who was presented with an opportunity to expand his business, turning his medical practice into an integrated regenerative medicine facility that combined chiropractic care with innovative solutions for musculo-skeletal issues. But it would mean partnering with—and investing in—another well-established business. It would require a large amount of funding, and fast.

Michael began searching the internet for solutions; he weighed the standard options—HELOCs, loans, refinances—but each presented interest costs that would nearly double his initial debt.

While empty nesters, he and his wife weren’t about to downsize. They loved their home and the blossoming community they lived in. They had already taken out a line of credit previously, but the remaining funds wouldn’t cover his new venture, and they weren’t keen to the idea of extending their debt timeline.

So Michael decided to see what else was out there when he stumbled upon home equity investments. He reached out to multiple companies, and made his decision after speaking with a Hometap investment manager.

“My wife was a little [nervous] about the process, but when you look at your home value, and what you can do with that money, it’s a great option,” says Michael.

After getting off the phone with his investment manager, Michael explained how the investment process would work to his wife. They could stay in the home they loved without adding more debt to the picture, and fund the next chapter of his professional growth. The process couldn’t have been simpler. Michael and his wife understood every step of the application and appraisal, and would have cash in-hand from their equity in just a matter of weeks.

“The [decision] made sense, from my perspective,” Michael explained. “I know I’m going to stay in my house. I know my property value has gone up. The value, for me, is the consistency and stability of our property.”

In just a few weeks, Michael had the funds he needed to open an integrated practice in Leominster, Massachusetts. He was able to invest in the existing practice to become the owner, to purchase the equipment he needed, and to expand the offices to accommodate the new services the practice would now offer.

Michael's Medical Practice

Now, as the new Medical Director and owner of Maragal Medical, Michael works in tandem with a chiropractor and other medical professionals to offer patients a unified regenerative medical practice, utilizing rehabilitation specialists, regenerative medicine and robotics technology to treat arthritis neuropathy, and joint pain.

“[Our investment manager] was very helpful in explaining the entire process in a way that I was able to pass on [to my wife.] That’s what sealed it. I essentially had two companies at stake. Understanding our options and every detail of the investment process was crucial.”

Samantha and Edward boosted their small business with a home equity investment

How Samantha and Edward Supplemented Their Seasonal Business with Their Equity

As new parents running a seasonal business, California homeowners Samantha and Edward were looking into traditional loans to offset slower months.

California-based couple Samantha and Edward run a seasonal business and were looking at traditional loans to offset slower times of year. But “getting business loans proved to be a little harder nowadays,” Samantha noted. As busy parents both juggling full-time jobs, their side business, and child care, Samantha and Edward needed an alternative income stream to suit their growing family.

Looking to both boost their small business and pay off a few debts, Samantha and Edward started researching home equity loans. After comparing their options, the couple decided to access some of their home’s value with Hometap. “[Hometap] really suited our needs,” Samantha said. She also cited no monthly payments and the ability to save as other reasons for choosing Hometap over other options.

In the short term, Samantha and Edward plan to use the funds from their Hometap Investment to boost their small business and pay off a few debts. With increased flexibility from their improved cash flow, they’ll be able to take on new clients and more work, leading to an increase in their income and ability to pay off debt. Down the line, they anticipate an improved credit score that will allow them to refinance existing loans for smaller monthly payments or better interest rates.

“It’s the domino effect,” Samantha said. “We’re trying to take little steps to improve and prosper.”

Samantha and Edward appreciated Hometap’s dedication to efficiency. Documents were provided early for review, the appraisal was prompt, and inquiries were often addressed within the hour.

“It was a very smooth process and everything seemed positive,” Samantha said. “I highly recommend it.”