Boston-based Hometap, which is less than two years old, raised a $100 million Series B to give people a way to borrow against the equity in their homes without taking out loans.
Or as its name implies, it offers homeowners a way to “tap” into their home equity by taking on an investor in their property.
Hometap describes itself as a “loan alternative,” and works by offering people cash for a percentage of their home equity.
Homeowners can settle their investment by buying out Hometap, selling their home, or refinancing their first mortgage.
The company says its software uses automated technology to make the process as simple as possible.
Of the $100 million of new capital it’s raised, the company plans to use $20 million toward company operations.