Make An Informed Decision

1. Quick Access to Your Equity

When you’re in a financial pinch, you often need to fix your money issues quickly. If you don’t have the means to afford your mortgage, you may be hoping to tap into the equity of your house to get out of a financially-straining situation.

Residential sale-leaseback arrangements allow for faster access to your home equity. You can often receive and use the money for your home within just a few short weeks of initiating the sale and leaseback process.

Even if you are not struggling to afford your mortgage, a home sale-leaseback can allow you to get the most of your home’s equity when its market value is high, without forcing you to move right away.

2. Added Time

Opting for a home sale-leaseback can give your family so much more value than a traditional home loan: it gives you more time in your house without accumulating more debt. While you become a tenant, you can stay under the comforts of your own roof without worrying about looming loans to pay off. This added time allows you to avoid disruption as you plan for a brighter future.

3. No Loans

You might feel forced to consider refinancing or reverse mortgaging to afford your home, but, ironically, these lending options dig you more into debt. That’s because they are, in fact, loans— and loans must be repaid. 

Let’s compare this to a sell-and-leaseback arrangement. When opting for a residential sale-leaseback, you are not taking out any loans; you are selling your home and instantly gaining access to the money tied up in your equity— while still being able to live in your same house by paying a reasonable monthly rent.

4. Maintaining Your Dignity

When managing financial problems, it doesn’t take long for the dominos to start falling. News of money issues often spreads rather quickly amongst family, friends, the office, and the neighborhood. If you see moving as your only solution, it can be especially hard make this announcement. Accepting a home sale-leaseback offer allows your family to stay in your original home and financially recover with added privacy.

5. No Immediate Moving or Relocation Costs

If you decide to sell your home and instantly have to move, you have immediate costs to consider, like paying for moving services, travel arrangements, and unforeseen expenses on the new home such as repairs, renovations, refurbishings, etc. a Home sale-leaseback offers, however, allow you to get instant cash for your home without moving right away, therefore shouldering these extra costs.

6. Potentially No Monthly Rent or Mortgage Payment

If you have your monthly rent cost pulled out of the original offer for your home, you can avoid a monthly “mortgage” or “rent” payment throughout the terms of your home sale-leaseback. Because the payments are taken out of your original equity return, there’s no additional money you need to worry about paying each month.

7. Option to Buyback

In a residential sale-leaseback arrangement, homeowners can opt for a buyback option, allowing them the opportunity to repurchase the property after a set lease term. This option can be particularly appealing to those facing temporary financial challenges but wish to maintain a connection to their property.

8. No Credit Check Required

Struggling homeowners may have considered other lending options only to realize they cannot get approved. If their credit score is low or they have a high debt ratio, banks may not approve their reverse mortgage or refinancing request. When this is the case, a residential sale-leaseback is really the most realistic choice, since most home sale-leaseback programs in residential real estate are not credit-based. Because the homeowner would be selling their home— and that does not require any credit checking— no credit score is too low to qualify for most sale-and-leaseback programs.