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Income, Credit, and Why Banks Won't Help

Amanda HoeyReviewed by

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 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 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 lenders want to see? Look for an alternative.

Choose an Alternative

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.

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 and finally start working toward your financial goals.

Amanda Hoey
Content Marketing Manager

Amanda Hoey, Content Marketing Manager for EasyKnock, has applied her experience in public relations and content development to help produce educational and informative content for the financial and real estate industry. She is committed to bringing awareness and knowledge to homeowners about EasyKnock’s home equity loan alternative.

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