One year after completing its inaugural home equity investment securitization and raising $217 million, Hometap has secured $50 million from Gallatin Point Capital to support product development and other business initiatives.
Hometap, based in Boston, will invest the funds in tools and education pushes that support its lending activities. The company's core home equity investment (HEI) product offers borrowers cash upfront in exchange for a percentage of the home future equity. It allows homeowners to access the equity in their homes without monthly payments, a company statement explained.
That model is at the heart of Hometap's broader mission to give homeowners more flexibility in tapping into the value of their homes at any stage of ownership.
"This financing allows us to further invest in the tools, technology and education that help homeowners make confident financial decisions," Hometap CEO Jeffrey Glass said in a statement.
After its inception, Hometap has struck more than $2.3 billion in home equity investment contracts with more than 22,000 homeowners, according to a company statement.
