HELOC vs HEI: Which One’s Really on Your Side?
You’ve got equity in your home. Great! Now what?
Most banks will push you toward a HELOC (Home Equity Line of Credit) because, of course, they will. It’s a product designed by banks, for banks.
But there’s an alternative designed with homeowners in mind: an HEI (Home Equity Investment). If you’ve ever felt like the system isn’t built for people like you, you might want to listen up.
Myth #1: “A HELOC is free money; you only pay when you use it.”
Nope. That’s marketing spin. Here’s what they don’t tell you:
You’re approved for a certain amount, but you’ll start paying interest the moment you draw even a penny. Plus, if rates rise? You’re stuck.
With an HEI, there are no monthly payments. You’re simply unlocking your equity in exchange for a share of your home’s future value on your terms.
Myth #2: “Only people with nearly perfect credit can unlock their home’s equity.”
Sound familiar?
Traditional banks want you to believe that if your credit score isn’t perfect, or if your income isn’t predictable, you’re out of options.
But that’s not true.
Hometap’s Home Equity Investment looks at your home, not just your credit. If you’ve built equity, you may still qualify, even if your credit has taken a few hits.
Myth #3: “If you don’t go with a bank, it must be risky.”
Let’s flip that.
Banks have made billions convincing people to borrow against their homes, then charging interest, late fees, and sometimes… foreclosing.
An HEI doesn’t come with monthly payments.
HEI companies make their money from sharing a portion of your home’s change in value, so their profit is directly tied to your financial success.
HELOC vs HEI: The Side by Side
Let’s make this simple:
So which is really on your side?
Go HELOC if…
- You need ongoing credit (e.g., for renovations)
- Have good credit and steady income
- Want the full upside on any future home appreciation
Choose HEI if you…
- Want no monthly payments
- Need just a lump sum
- Prefer more flexible approval (even with imperfect credit)
- Are comfortable trading part of future appreciation
Banks are betting on your debt. Hometap is betting on your home.
If you want to use your equity without getting trapped in monthly payments and rising rates, an HEI could be an option worth exploring. Terms and conditions apply, and some applicants will not qualify.
Your home shouldn’t feel like a burden; it should be a springboard.
Next Steps
Terms and conditions apply. Some applicants will not qualify. Not available in all states.
No monthly payments,
Home Equity Investment
The Hometap family of companies utilizes Hometap Equity Partners, LLC and Hometap Homeownership Solutions, LLC to provide Hometap Home Equity Investments (HEI or HEIs). Each entity has the ability to enter into a HEI directly with the consumer:
Hometap Equity Partners, LLC dba Hometap. NMLS ID# 2467867 361 Newbury St, 5th Floor, Boston, MA 02115 NMLS Consumer Access
Hometap Homeownership Solutions, LLC dba Hometap. NMLS ID# 2819930 361 Newbury St, Office 450, Boston, MA 02115 NMLS Consumer Access
Hometap Real Estate Equity Partners, Inc. holds real estate brokerage licenses in certain states. California DRE #02191883
A Hometap HEI has a ten (10) year term, during which no monthly or recurring payments are required. Hometap records a lien against the property, in the form of a mortgage or deed of trust, to secure its interest. You may choose to settle the Investment at any time during the term without incurring any penalties by exercising an Owner Repurchase. If you do not settle the HEI by the expiration of the term, your Hometap HEI provider may exercise its right to acquire a percent ownership interest in the property and then work with you to sell the property. You may contact either Hometap entity at hello@hometap.com (for prospective or current applicants) or homeowners@hometap.com (for homeowners with an active HEI) for more information. Eligibility criteria are subject to change. For current criteria, please contact your Hometap HEI provider at (855) 223-3144 or visit www.hometap.com/faqs
