Instead of taking on additional debt such as a home line of credit (HELOC) or home equity loan to tap into equity, these deals are debt-free, equity-based financing.
The concept of home equity investments provided by fintech companies like Hometap is a new asset class in the real estate ecosystem and seen as complementary to traditional debt options.
Affordability has always been a challenge, said Ashkan Zandieh, managing partner and industry chair at the Center for Real Estate Technology and Innovation.
Homeowners are looking to tap into their home equity without taking on additional debt due to rising home prices and the burden of traditional mortgage debt.
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