Hometap's new funding caps a big year for HEI growth

Shared-appreciation contract provider Hometap announced a new capital raise this week, which comes at the end of a year when several tailwinds helped fuel growth for equity investment products and loans.  

The Boston-based home equity investment platform this week secured $50 million in new funding led by affiliates of Gallatin Point Capital. The company plans to use the proceeds to promote increased adoption of its shared-appreciation products, which are also referred to as home equity investments. 

"As the cost of homeownership rises, families need practical, flexible ways to access the value in their homes," said Hometap CEO Jeffrey Glass. "This financing allows us to further invest in the tools, technology and education that help homeowners make confident financial decisions. It also reinforces our commitment to broadening home financing options."

With the infusion of cash provided by Gallatin, Hometap funding now exceeds $1 billion since its founding in 2017, according to Crunchbase. The number includes amounts raised through debt financing mechanisms.  

Current home equity product trends

The news comes as the home equity investment and lending community sees growing momentum at the close of 2025, with current mortgage rate levels making refinancing unattractive for many homeowners. At the same time, home equity levels sit near record highs. 

HEI products allow homeowners to tap into the value of their properties through contracts that provide them a percentage of equity in cash, along with no monthly payments. Upon contract maturity or termination, agreement terms require homeowners to repay an agreed-upon share of equity, including any accrued appreciation.  

Hometap has been among the leaders in the HEI community, and among other developments that drove it forward in 2025 was the close of a $300 million securitization consisting of its originated products in the third quarter.  Total origination volume since inception also surpassed $2.3 billion this year. 

Further signs of growth within the HEI space was a similar $390 million securitization issued by Blue Owl Capital and Hometap's fellow shared-appreciation platform Point, while in early December, Splitero announced its own $283 million offering.  

Beyond secondary market activity, Hometap's peers and competitors Point, Cornerstone Financing, and Unlock Technologies also found themselves on the receiving end of significant new capital raises or commitments in the second half of the year. Unlock was able to celebrate the expansion of its network into five additional states over the summer.   

The attention being paid to shared-appreciation contract providers by investors and consumers reflect a business strategy shift toward home equity that has companies examining the current potential within the tappable values, which collectively sat at $11.2 trillion at the end of the third quarter, according to Intercontinental Exchange.  

While HEI platforms garner increased interest and scrutiny, providers of traditional lending products, including home equity lines of credit, loans and reverse mortgages are likewise seeing rising activity, with recent launches of several new offerings and outside capital funding. 

HEIs invite consumer interest and controversy

The growth of the home equity investment industry has not come without controversy, though. In 2024, the segment found itself subjected to various lawsuits and enforcement actions, many revolving around the now-defunct HEI platform, Easyknock, which ceased operations suddenly late last year. 

At the center of legal complaints were consumers who claimed they were misled and did not understand terms of the contracts they signed nor the potential penalties for failure to repay, such as foreclosure. Critics of shared-appreciation agreements have also likened providers to subprime mortgage lenders for marketing to homeowners who may lack the creditworthiness to qualify for HELOCs or refinances.

Potential paths for regulation turned into a regular topic of conversation in 2025, as HEI platform leaders said they hoped to work with states to create policy specific to HEIs. Critics, however, argue that their contracts meet the legal definition of a loan, and companies providing them need to adhere to the more stringent rules regarding disclosures that mortgage lenders must follow. 

Hometap currently finds itself in the middle of an ongoing legal battle with the Massachusetts attorney general, where marketing and the definition of its products lie behind the state's claims against the company. The state's attorney general cited deceptive marketing tactics and went as far to label the investment agreements as "illegal reverse mortgages" in the lawsuit, which was initially filed in February.