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 another option, one with fewer restrictions and more flexibility.
Equity is Yours
There are a few ways that you can access the equity within your home, making it a valuable asset with minimal requirements: selling the home, a reverse mortgage, or EasyKnock’s new 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 home 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 access to 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 much of the financial responsibility that comes with owning a home. You have the flexibility to have EasyKnock sell your home at any point if your situation changes.