Sell & Stay vs. Reverse Mortgage: What’s the Difference?
A common misconception is that EasyKnock’s sale-leaseback program, Sell & Stay, 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 Sell & Stay have in Common?
Both Sell & Stay 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 Sell & Stay and Reverse Mortgages
There are more differences than similarities between Sell & Stay 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. Sell & Stay 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 Sell & Stay program. With Sell and stay, you no longer have a mortgage and will not have to repay it.
Another difference between reverse mortgages and Sell & Stay is the amount of money you will receive. Sell & Stay gives you back more of the money you’ve invested in your home than a reverse mortgage by purchasing the property from you at market value. You even get any appreciation in value if and when you decide to move. A reverse mortgage only allows you to access the equity in your home.
The next major difference between these programs the demographics they’re available for. There is no age limit for Sell & Stay, whereas 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 number of restrictions than other equity tapping solutions, but that doesn’t mean there are none. You’ll still need a fairly low mortgage balance, 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. Sell & Stay doesn’t require any of these things. In fact, with Sell & Stay, EasyKnock pays the property taxes, homeowners insurance, and any HOA fees.
Reverse mortgages can take a couple of months to process; Sell & Stay takes only a couple weeks 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 sell your home with Sell & Stay, you just tell the company you want them to sell it. Easy as that. You won't have to deal with real estate agents or negotiations. With a reverse mortgage, there is also the possibility of being foreclosed upon. With Sell & Stay, that’s not an option since EasyKnock owns the home.
A reverse mortgage may be a great solution for some people. However, if you don’t fit into those strict requirements but still need to access the money in your house, or if you just want more flexibility for your future, Sell & Stay may be a good alternative for you. Once you’re ready, you even have the option to buy your house back. Visit https://www.easyknock.com/programs/sellstay to learn more about how Sell & Stay may be able to help you reach your goals.
- Accessing the money built up in your home without having to move.