EasyKnock

Sell & Stay Modernizes an Age-Old Market

By Tom Burchnell

Retirement brings few options for tapping home equity due to loan qualification stipulations like income and FICO score requirements. Now, Sell & Stay offers those considering a reverse mortgage an alternative option with fewer restrictions and more flexibility.

Equity Is Yours

There are a few ways that you can convert the equity within your home to cash with minimal requirements: selling the home, a reverse mortgage, or EasyKnock’s Sell & Stay program.

Selling Your Home to Access Equity

There’s one nearly surefire way to access all your home equity: selling the home. So long as your home hasn’t depreciated in value beyond the price that you paid for it plus the fees associated with selling a home so that you don’t really have equity, selling will get you access to the money you’ve invested in your home. However, you’ll have to move. That could be a deal-breaker for a lot of seniors. Plus, selling can be costly in the now and it can take a lot of time.

Enter Reverse Mortgages

Reverse mortgages do allow homeowners access to part of their equity without leaving their home but in the form of a loan that they’ll have to pay back after a specified term. The problem is that these types of loans come with a lot of restrictions: you must be 62 or older, you must have a low mortgage balance, and you must be able to pay for expenses on the home including insurance, taxes, and regular upkeep of the home. You may need a minimum FICO score, as well.

The good news for those who get a reverse mortgage is that while your descendants would have to pay off the loan to get your home after your death, they will not wind up owing money on your estate.

These loans tend to be a last resort for seniors desperate to stay in their homes and this is because the terms really aren’t that favorable and they can be costly to obtain.

Sell & Stay Solves Reverse Mortgage Problems

When you don’t want to sell and leave your home, and a reverse mortgage doesn’t really provide the proactive approach to senior finances that you might be hoping for, Sell & Stay may be an ideal option for you. It is even perfect if you’re ready to retire and would like to convert your equity, but you aren’t the required 62 years old. The fees are much lower than reverse mortgages, there is no credit or income requirement, and you’re alleviated of the responsibility that comes with owning a home. You have the flexibility to have EasyKnock sell your home at any point if your situation changes.

See how much equity you have to access with our equity calculator, and feel free to contact us if you think Sell & Stay might be a viable reverse mortgage alternative for you.

Key Takeaways

If you’re looking for a flexible way to convert your home equity to cash but don’t want to move out of your home and don’t fit the qualifications of a reverse mortgage, Sell & Stay may be the best solution for you. Speak with a financial consultant to learn more about what would be the best option for your situation.

Topics:
EasyKnock
Sale-Leaseback
Sell & Stay
Tom Burchnell Director of Product Marketing for EasyKnock, licensed real estate agent.

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.