Finance

Income, Credit, and Why Banks and Lenders Won’t Help

By Amanda Hoey

Are you feeling stuck on whether to go the traditional route of banks and lenders or to find a more flexible and modern solution? On the one hand, traditional loans are just that: traditional. “Tried and true” methods like a HELOC, bridge loan, or home equity loan are probably what come to mind. But on the other hand, the terms, restrictions, and qualifications have become so tight that the chance to qualify for and benefit from these loans can feel low to non-existent. 

We get it. That’s why we’re here to break down the differences between the usual loan options and the latest alternatives from EasyKnock. 

First, let’s take a closer look at the criteria for most lending solutions. Since the Great Recession, banks and lenders have become far more strict on who gets access to what. This is due to a lowered risk tolerance, less competition, and more government regulations than ever before.

Qualifying for a Loan

So what do lenders typically require you to have to qualify for most loan options? These are typically what will be expected from banks and lenders when trying to get a loan:

  • Credit History

Typically, lenders look for a 620 or higher credit score as well as a healthy credit history.

  • Financial statements

Be prepared to show your latest tax returns.

  • Proof of Income 

Lenders want to be sure you can repay your debts, so they will be looking to see that you’re employed and that you’re making enough money. 

  • Debts

Lenders will look at your debt-to-income ratio to make sure you can afford to make payments on time with all other bills you owe. They typically want the ratio to be 50% or less.

All of these requirements may be impossible for someone to obtain to get the loan they need. With alternative forms of employment and income becoming more popular, credit card debts rising, the traditional options are becoming less and less readily available for everyday homeowners. 

So what can you do if you don’t fit the mold that traditional banks and lenders want to see? Look for an alternative.

An Alternative to Banks and Lenders

With EasyKnock, that alternative is simple and fast. With our solutions, you don’t need to deal with lenders or loans at all. Instead, you sell us your house, converting your home equity to cash. But instead of moving out, you stay in the house as a renter for as long as you need. Continue living in your home while working toward your financial goals with the cash you need. When you’re ready, you can even repurchase your house or have EasyKnock sell it on the open market so you can move to a new home. 

The best part is, since we’re not a lender, we don’t have the same strict requirements. We don’t disqualify people based on harsh credit, debt, and income expectations. Instead, we work with you to create a plan that works for your needs.

Key Takeaways

You can convert your equity into cash in as little as 2 weeks with EasyKnock’s sale-leaseback solutions. It’s quick and easy to qualify and there’s no hard credit check. You can finally say “so long” to the stress of loans, banks and lenders, and finally start working toward your financial goals. Talk to a financial consultant to find out if EasyKnock is the right choice for you.

Topics:
Banks
Credit
Debt
Debt Management
Income
Loans
Amanda Hoey Content Marketing Manager for EasyKnock, financial and real estate writer.

This article is published for educational and informational purposes only. This content is based on research and/or other relevant articles and contains trusted sources, but does not express the concerns of EasyKnock. Our goal at EasyKnock is to provide readers with up-to-date and objective resources on real estate and mortgage-related topics. Our content is written by experienced contributors in the finance and real-estate space and all articles undergo an in-depth review process.