A common misconception is that EasyKnock’s sale-leaseback program is pretty much the same as a reverse mortgage. In one big important way, they are alike. However, they’re definitely not the same thing. Let’s take a closer look at the similarities and the differences to help you make the right decision for your situation.
What Do Reverse Mortgages and Sale-Leasebacks Have in Common?
Both sale-leasebacks and reverse mortgages accomplish the same goal: getting you access to the equity in your home, an investment you’ve been bolstering since you bought the property, while you continue to live in your home.
That’s actually about all they have in common.
The Differences Between EasyKnock’s Sale-Leaseback and Reverse Mortgages
There are more differences than similarities between sale-leasebacks and reverse mortgages.
For one, a reverse mortgage is a loan. It’s not structured like a traditional home loan and it’s set against the equity in your home, but it’s still a loan. A sale-leaseback isn’t a loan. In fact, it’s paying off your existing loan, meaning your mortgage. If you so choose, you don’t ever have to pay back the money you got for your house through the sale-leaseback program. With EasyKnock, you no longer have a mortgage and will not have to repay it.
Another difference between reverse mortgages and a sale-leaseback is the amount of money you will receive. EasyKnock converts more of the equity you’ve built up in your home to cash than a reverse mortgage by purchasing the property from you at market value. Some of EasyKnock’s sale-leaseback solutions even allow you to receive any appreciation in value if and when you choose to move and have EasyKnock sell the house on the open market. A reverse mortgage only allows you to access the equity in your home.
The next major difference between these programs is the demographics they’re available for. There is no age limit for EasyKnock’s sale-leasebacks. However, reverse mortgage programs require that you be 62 years or older, eliminating a large portion of the population.
A big selling point for reverse mortgages is the fewer restrictions than other equity tapping solutions, but that doesn’t mean there are none. You’ll still need a fairly low mortgage balance and be able to prove you have the income to pay home maintenance and taxes. You may also be required to meet a minimum FICO score requirement. With EasyKnock’s sale-leasebacks, there is no strict credit score requirement and EasyKnock even pays the property taxes, homeowners insurance, and any HOA fees. All you pay is monthly rent.
Reverse mortgages can take a couple of months to process; sale-leasebacks can take as little as a week to close and get you the money you need.
When you choose a reverse mortgage, you must pay back the balance of the loan. When you choose a sale-leaseback, you decide when and if you want to move and inform EasyKnock, who will list the home on the open market. You won’t have to deal with real estate agents or negotiations. Some sale-leaseback solutions even offer you the option to buy your house back at an agreed-up price.
A reverse mortgage may be a great solution for some people. However, if you don’t fit into those strict requirements or if you just want more flexibility for your future, EasyKnock’s sale-leaseback may be a good alternative solution for you. Visit https://www.easyknock.com/ to learn more about how a sale-leaseback may be able to help you reach your goals.