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Hometap Has Expanded Equity Product to Six States

The firm now offers home equity financing alternatives in 27 U.S. states following a new round of state-level growth.

Updated on Oct. 6, 2026 in Home Renovation

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Hometap expanded its home equity financing product into six new U.S. states, including Alabama and Kentucky, bringing its total service footprint to 27 states. AI Illustration. Upload story photo >

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Hometap has expanded its home equity product into Alabama, Kentucky, Nebraska, New Hampshire, New Mexico, and Wisconsin. The expansion brings the company to 27 states total, having added 12 states to its service area throughout 2026.

Why it matters

Homeowners are increasingly seeking ways to access their equity without replacing existing mortgages at higher interest rates. Market demand is driven by rising housing costs and tighter lending standards, with 35% of traditional equity-extraction applications denied in 2024.

The company has served nearly 30,000 homeowners since 2017, and 5,000 residents in the newly added states have already contacted the firm for financing. The equity arrangements must be settled within a 10-year term through a sale, buyout, or refinance.

The players

Hometap

Hometap is a home equity investment company based in Boston that provides financing alternatives to traditional home equity loans.

The details

Homeowners receive cash upfront in exchange for a share of their property's future value. This model allows residents to bypass the traditional mortgage underwriting process that caused 35% of applicants to be rejected last year.

Timeline

  1. Hometap was founded in 2017.

  2. The firm began its current geographic footprint measurement period in 2019.

  3. Tracking for equity growth in Alabama began in 2020.

  4. In 2024, the denial rate for traditional equity-extraction mortgages reached 35%.

  5. The expansion into six additional states occurred in October 2026.

Culture Shift

This expansion follows a pattern set by the 35% denial rate for traditional equity-extraction mortgage applications in 2024 as alternative lenders fill the market gap. The move reflects a broader societal shift toward non-debt financing methods for homeowners facing tighter bank lending standards.

Residents in the six new states now have an alternative path to unlock home equity without the need to secure a traditional second mortgage. This allows homeowners to access cash while potentially avoiding the higher interest rates and strict credit requirements of standard bank loans.

The takeaway

The move demonstrates a growing preference for equity-sharing agreements as a way to bypass traditional credit hurdles in the current interest rate environment. Homeowners considering these options should carefully weigh the long-term cost of surrendering a share of their future home value.

Further reading

For more on managing property value and financing, see our Home Renovation section.

Source note: This article includes information reported by CFOtech US.

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Is now a good time to pursue alternatives to traditional financing to access home equity?