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.

Karen Paid Off Her Medical Bills with a Home Equity Investment

Karen Paid Off Her Medical Bills with a Home Equity Investment

Karen and her sister were looking for a way to split their inheritance after their father passed away and left them with a home.

The sisters decided that a home equity investment from Hometap would allow one of them to keep the home and provide the other with her share of the funds.

But before Karen completed her application process, her family would face another misfortune. She was diagnosed with cancer, and quickly found herself out of work, with countless operations ahead of her.

After more than a dozen procedures, Karen was overburdened with medical bills, plus all of the everyday bills that had been piling up at home while she was in treatment. What she was collecting from her disability insurance wasn’t enough to get out from under the debt that had amassed.

Her Hometap Application had been put on pause, but she picked back up where she left off and received her funding in just a few weeks.

“[My Investment Manager] understood some complicated situations that I had, and treated them as such that he understood and didn’t judge,” said Karen. “And it was like a friend helping.”

The money from her home equity investment allowed her to remove a line of credit from her home, pay down credit card debts, and put a dent in her medical bills.

“The funds that I received from the equity of my house have changed and improved my life such that I can now just worry about getting healthy and better from cancer and all the surgeries that I’ve had. They’ve given me my life back.”

Find out in just minutes if you could fund your home repairs and renovations with a home equity investment from Hometap.

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

Massachusetts Homeowner Pays Renovation Debt with Home Equity

photo of Gina

Gina Paid Off Renovation Loans and High-Interest Debt with Her Home Equity

Gina worked for a catering company when the COVID-19 outbreak began. The business closed its doors with no intention of reopening. Gina was, like so many others in the early days of the pandemic, suddenly and unexpectedly out of work. 

What’s worse, she had just spread the costs of her recent home renovations across a home equity loan and several high-interest credit cards. She lives in the Massachusetts home that has been in her family since the 1970s, and had made some necessary upgrades. 

She had planned to refinance in order to pay off the debts, but she knew she wouldn’t qualify to refinance without a paycheck. 

Then, she heard about Hometap on the radio. Still a bit unsure, Gina requested an Estimate online and was introduced to her Investment Manager. 

“It was an easy process, that was helpful,” said Gina. “Very automated, very easy to apply, easy to provide the documents. I was nervous about the 10-year timeline* — to pay back or sell [the home] — but she [my Investment Manager] explained all my options; you can refinance, use a home equity loan, etc. 

“I felt more at ease knowing there were more options. When the 10 years are up, there will be other options to pay it back.” 

In a few weeks, Gina finalized her home equity investment, first using the funds to pay off the high-interest credit card debt she’d been carrying, and then address her home equity loan balance. 

Gina has since gone into business for herself, launching a cleaning and painting service, and says she’d recommend a home equity investment to anyone that finds themselves in her shoes. 

“If you’re in my circumstance, you can [access] the value of your home via an investor and be able to tap some funds to help you pay off debt.”

Find out if a home equity investment from Hometap could help you pay off your debts, fund your renovations, or accomplish your other financial goals. An Estimate takes just a few minutes to complete. 

*The timeline mentioned above is referencing Hometap’s 10-year effective period. This refers to the time in which the Investment must be settled, which can be done in several ways, including through the sale of the home, savings, a refinance, or a home equity or other loan.

Disclaimer: This homeowner was compensated for providing Hometap with an interview about her Investment experience.

Arizona homeowner uses home equity to settle divorce

Homeowner Zac uses home equity to fund divorce

Zac Leveraged His Home Equity to Settle His Divorce without Selling His Home

Zac C. built a stunning home to his exact liking — every corner and detail was custom. So when he and his spouse made the decision to divorce, he quickly began researching his options to keep the home he’d lived in for more than 15 years.

Zac knew the mortgage payments on the Mediterranean masterpiece he created would be out of reach to manage on his own. And then there were the costs of settling the divorce to consider.

“I didn’t want to uproot my life right now, and a divorce can do that,” said Zac.

After hearing about home equity investments from radio ads and social media, Zac looked into Hometap and other providers. He contacted Hometap, and after filling out an Application and speaking with an Investment Manager, he agreed that Hometap could be a good fit.

“I would have to get my wife to agree to sign the paperwork, so I began looking at other alternatives in case she wasn’t on board,” Zac explained, adding that his wife was co-owner of the home. “I talked with the mortgage agent I had worked with in the past, and he suggested refinancing without taking cash out, so that we could take her name off of the mortgage.”

Once the refinance was complete and the paperwork was updated, Zac reached out to his Investment Manager again.

“It was a year later; I was astounded that [my Investment Manager] Jake was still with me, and didn’t show any signs of being frustrated. He was very patient, answered all my questions as best he could, and pointed me in the direction of other resources when I was struggling. I appreciated working with him.”

Zac found the process far more streamlined than the refinance he had completed the year prior, and appreciated the flexibility of how he could use the funds. In fact, when his cousin’s business hit hard times amid the COVID-19 pandemic, Zac didn’t hesitate to suggest looking into Hometap.

“[My cousin] had looked into refinancing and wasn’t getting anywhere, and realized a home equity investment could help him get out of debt and get his business back on track without having to sell his home.”

In just a few months, Zac and his cousin both received their Investments — one to settle a divorce, the other to pay off business debts and recover.

“I had known there had to be better options these days. The more people look outside the box and realize that there’s more than one way of doing things, the more it’s going to benefit them, and that’s the way I live my life,” said Zac. “This was a good way for me to do what I was doing: keep the house and settle my divorce. I wouldn’t hesitate to refer anybody to Jake or to Hometap.”

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

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

With a lien on her property from a HERO loan, Elizabeth B. looked to Hometap

How Elizabeth Paid Off Her HERO Loan and Boosted Her Mortgage Payments

Elizabeth B. is an Inglewood, California, homeowner that had the opportunity to take out a Home Energy Renovation Opportunity (HERO) loan to make energy-efficient home improvements to her house. She used the funds to update the home’s windows, paint, and to add solar panels to the roof. Built in the 40’s, the three-bedroom home was in need of an efficiency refresh, but the HERO loan came with high interest rates, so Elizabeth was looking to refinance to pay off the debts. 

A HERO loan is generally repaid through property tax payments, which means there is  a tax lien on the property. Often, HERO loans, currently only available in California, Florida, and Missouri, can have interest rates as high as 8.99% for a 25 year term

Looking for a HERO loan payoff solution, Elizabeth considered refinancing her home. She didn’t realize that refinancing with tax lien was next to impossible. 

“It is harder to refinance because of the lien they have on your home,” she said.

Inglewood Home

The Federal Housing Finance Agency prevents Fannie Mae, Freddie Mac, and the Federal Housing Administration from refinancing homes with a tax lien. 

So she switched her focus from refinancing to alternative solutions, and that’s when she  found Hometap. When she began the online application, she was wary. It seemed “too good to be true,” she recalled. 

“The process was much easier and less hassle than a traditional refinancing,” said Elizabeth. After receiving a call from her Investment Manager to go over the details of the process, she was confident that Hometap was the right move. 

In just a few weeks time, she had her investment in-hand. Her Hometap Investment allowed her to access her equity and pay off her HERO loan, effectively removing the tax lien on her home. 

“I was able to not only pay off my remaining debt faster, but I was also able to put more money in savings,” said Elizabeth. “I’m also able to pay more money into my mortgage each month.” 

Her advice to other homeowners facing debt stress? “If you don’t qualify for—or don’t want—a HELOC or refinancing, consider Hometap,” she said. “The process is very pleasant and easy.”

Is a home equity investment from Hometap the right solution for you and your HERO loan payoff strategy? Take our quick, no-commitment quiz to see.

James paid off his renovation loans with his home equity

James paid off his renovation loans with his home equity

James had no plans of moving out of his Medfield, Massachusetts home any time soon, so when he chose to renovate, he went big. He added a 1,000-square-foot addition onto his four-bedroom home, plus a new three-car garage, a farmer’s porch, and he refreshed the yard, renovated the kitchen, repaired the driveway, and replaced all of the original windows in the house.

It was a massive undertaking, with an equally massive price tag. James used a loan to fund a chunk of the renovations, and other costs and materials were put onto credit cards.

James knew he wanted to put a dent in the renovation debt before interest payments started adding up, but with an already low interest rate mortgage, a refinance wasn’t an ideal option.

“A refinance could have me moving from two percent to three, three and a half. A line of credit from a bank would mean more fees up front, and then you have to worry about where your interest rate is going,” James explained. “The Hometap solution was far more inline with how I wanted to address paying off the outstanding debt.”

He was already familiar with home equity investments after receiving mail about an investment company in the past, so he started searching the internet to learn more. That’s when he discovered Hometap.

“When I looked at what Hometap offered, it was more stable, more predictable, and if there was a downturn in the market, Hometap would ride that wave with me,” he said. “I liked that I was partnering with someone rather than owing someone and just saying ‘I’ll pay you back.’ The fact that the Hometap Investment is not a hit on credit* and that it’s based on the long-term value of the home is a tremendous relief.”

Considering the renovations were already complete prior to requesting a Hometap Investment, the appraisal of the property included the new upgrades, giving James more equity from which to borrow.

“I’m able to pay off all outstanding debts related to the renovation and addition project, as well as some additional credit card debt.”

 

 

*Hometap performs a soft-credit review of all applicants, which does not affect their credit, but in some cases, a hard credit check is required. We will not perform a hard credit pull without the applicant’s permission.

When medical bills were mounting, Hometap put an end to Marian’s worries

How Marian Put an End to Mounting Medical Debt with Her Home Equity

When Marian’s fiance Jerry underwent extensive back surgery, both of their lives came to a halt. She suddenly found herself in the role of caretaker for months, which created mounting living expenses on top of medical bills from the procedure. And with Jerry out of work for the foreseeable future, their combined income had taken a hit.

Marian knew she needed to find a quick solution to the mounting debt, but loans and home equity lines of credit would only add to that debt. The last thing she wanted was another payment. So she began searching for alternative financing solutions.

Despite having nearly 50 percent equity in her home — a beautiful three-story townhouse she and Jerry built in Huntersville, North Carolina — she was turned away from the first few home equity companies she approached. Then she found Hometap.

“I found an ad on Facebook for Hometap and I thought it sounded pretty good, so I filled out an inquiry,” said Marian.

Shortly after, an Investment Manager from Hometap reached out to schedule a call with her and a skeptical Jerry. He walked them through the process of applying, having the home appraised, and signing. By the time they got off the call, Jerry and Marian were convinced: Hometap was the right way to go.

“[The Investment Manager] Max was incredible,” said Marian. “Every step of the way, he kept us in the loop. He told me we would move forward with an appraisal. It was an absolutely seamless process; no stress, no hassle, no nothing.”

To their surprise, the appraisal of the home, built in 2008, came back higher than they’d anticipated. All that was left was to receive an official investment offer and schedule their signing.

“The closing was simple,” said Marian. “I loved the fact that the attorney came to the house, and the money was in my account when they said it would be.”

In a matter of weeks, Marian and Jerry went from feeling helpless as the bills stacked up, to having an instant solution that would allow them to pay down the medical bills and related debts.

“It’s an incredible option. What I found was that it was very transparent. There were absolutely no surprises.”

Miracles in Threes

Prior to the surgery, Jerry had been told for years that his medical condition was ‘too far gone’ and that he’d be confined to a wheelchair. A fateful second opinion changed everything and the surgery they thought was impossible was suddenly scheduled.

When Jerry awoke from a seven hour surgery, the leg and foot that had been partially paralyzed for years was suddenly functioning. The operation had done its job, and then some.

Hometap, Marian says, was the third miracle they witnessed in just a short span of time. The procedure that would give Jerry his life back wouldn’t force them to suffer financially in turn.

“It was an incredible relief to know I didn’t have to worry about it anymore,” said Marian.

Now in recovery, Jerry and Marian can set their sites on more important things, like their home, and planning their wedding.

After evaluating his options, Gerry M. determined Hometap was the smartest way to access his equity.

How Gerry Transformed His Credit Score and Eliminated Mounting Debt

When he lost a sizeable monthly income, Gerry M. was looking for ways to pay down his credit card debt. But with high debt-to-credit and debt-to-income ratios, he didn’t qualify for a HELOC.

Gerry was searching for alternatives to HELOCs when he discovered home equity investment products. As someone who was asset-rich but cash-poor, he was hopeful this was a potential path out of debt.

“I would have faced serious debt collection and years trying to rebuild my credit score,” Gerry said, recalling the stress of his debt burden.

At first, Gerry started working with another home equity investment provider.

“The other company’s application process was different than Hometap’s and much more difficult,” he explained. The process wasn’t moving in the direction Gerry hoped.

“I got tired of jumping through hoops and not getting a reply back.” That’s when he read reviews from homeowners who had used Hometap. Gerry decided to reach out. “Max from Hometap was there any minute, any time to answer questions for me,” continued Gerry, comparing his experiences. “I built a personal relationship with Max and I can’t imagine having done this with anyone else, or another company, because he was so responsive with everything.”

“Obviously, [home equity investments] aren’t for everybody,” Gerry noted, “but it was helpful to read other homeowners’ reviews and see that many who were in my same situation said [Hometap] was a good fit for them.” He also appreciated the simple, streamlined process. “Everything was clearly communicated the whole time. I have no complaints.”

Now, Gerry is debt-free with no monthly payments, and he’s already seen an improvement in his credit score.

“It hasn’t even been a month yet and my credit score has already shot up over 100 points,” he shared. “Now that my debt is paid off in full, I expect it to continue to jump another few hundred points.”

Having paid off his debt and improved his credit score, Gerry is, above all, relieved.

“Hometap saved me from going down that dark hole of debt. I can sleep at night again thanks to Hometap.”