How StayFrank Compares to Other Ways to Tap Your Home Equity

StayFrank vs. the usual options at a glance

Comparing sale-leaseback companies: questions to ask

Sale-leaseback terms vary a lot from company to company, and the differences show up years later, at lease end or at buyback. Ask every company the same questions. Here are StayFrank’s answers for Sell & Stay:

• Is there a minimum credit score? No. It’s a real estate sale, not a loan, so there’s no minimum credit score and no income verification.
• How is the price set? An independent appraisal sets your home’s fair market value, and that number drives your cash offer.
• How long can I stay? Up to three years. Most leases run 12 months to three years, with about two years typical, and you know your lease length before you close.
• Is the buyback price locked in? Yes. It’s agreed and locked in at closing, and you can exercise it any time during the lease, not just at the end.
• What if I don’t buy it back? You can have the home sold on the open market at lease end. StayFrank is paid the agreed amount, and you keep every dollar above it.
• How is rent set, and can I prepay it? Rent is based on the fair market rental rate for your home and area and is set in your written lease. You can prepay the whole lease from your proceeds, prepay part of it, or pay monthly.
• Who pays taxes, insurance, and repairs? StayFrank covers property taxes, insurance on the structure, HOA dues if any, and major repairs (roof, HVAC, structural). You handle everyday upkeep and carry renters insurance.
• Can rent go up mid-lease? Any annual increases are disclosed in your lease before you sign. There are no surprise mid-lease hikes.

Comparing home equity investment providers: questions to ask

Home equity investments from different companies can look alike on the surface but settle very differently. These are the terms to line up side by side, with StayFrank’s answers for its Home Equity Investment:

• How long is the term? Up to 30 years, and you can settle any time before it ends.
• Are there prepayment penalties? No.
• What’s the minimum credit score? A FICO of 500, with no income verification.
• How much can I get? Most homeowners can access 10% to 25% of their home’s current value, typically keeping about 25% equity after the investment.
• Is there a cap on what I’ll owe? Yes. Every StayFrank HEI includes a maximum return cap, disclosed in your offer, that limits how much you can owe even if your home appreciates quickly.
• What if my home loses value? StayFrank’s share goes down with it. We share in the downside as well as the upside.
• Do renovations count against me? Substantial documented improvements may qualify for an improvement adjustment, which excludes the value you add from StayFrank’s share at settlement.
• What do I pay at closing? Nothing out of pocket. Standard third-party costs (appraisal, title insurance, escrow, recording, and a one-time origination fee) are deducted from your funding and itemized before you sign.

Selling to a cash buyer vs. listing with an agent

A traditional listing usually takes months, often requires repairs and staging, and comes with agent commissions of 5–6%. A Hassle Free Home Sale is one direct cash offer on the home as is. StayFrank covers standard seller-side closing costs, charges no commissions, and closes on the date you choose, typically two to four weeks from first call to cash.

The honest tradeoff is that a listing can net more if you have time, your home needs little work, and your market is strong. If speed, certainty, or avoiding repairs matters more, or you’re facing a foreclosure deadline, a direct sale is built for that. Compare the net numbers either way.

StayFrank vs. borrowing against your home

HELOCs, home equity loans, and cash-out refinances are loans: you repay them monthly, with interest, and they depend on your credit and income ^{1 2}. A reverse mortgage is also a loan, generally for homeowners 62 and older, and its balance grows over time ³. StayFrank’s programs aren’t loans, so there’s no monthly loan payment and nothing reported to the credit bureaus as debt. For side-by-side detail, read HEI vs. HELOC vs. Cash-Out Refinance and Sale-Leaseback vs. Reverse Mortgage.

When StayFrank may not be the best choice

• You easily qualify for a low-rate loan and are comfortable with a monthly payment. Borrowing may cost you less.
• You want to keep 100% of your home’s future appreciation. A home equity investment shares part of it.
• You don’t have much equity. A home equity investment typically needs about 25% equity remaining afterward.
• You have time, your home is in great shape, and you want the highest possible sale price. A traditional listing may net more.

If you’re not sure, call 602.691.7921. We’ll walk through which option, ours or not, makes the most sense for your situation. There’s no cost to get an offer and no obligation.