Question 1

What is a sale-leaseback?

Accepted Answer

A sale-leaseback means you sell your home and stay in it as a renter. You get your equity in cash, and you keep living in the same house. There is no move, no mortgage, and no monthly loan payment.

Question 2

Which option gives me the most cash from my equity?

Accepted Answer

A sale-leaseback gives you access to up to 100% of your equity with no commissions. A traditional sale returns about 94% after commissions and fees. A HELOC or cash-out refinance caps you at about 80-85% of your home value minus your mortgage. A reverse mortgage gives you about 40-60%.

Question 3

Which option is the fastest?

Accepted Answer

A sale-leaseback closes in 1 to 3 weeks. A HELOC takes 2 to 6 weeks. A cash-out refinance takes 30 to 45 days. Reverse mortgages and traditional sales usually take 30 to 90 days.

Question 4

Do I take on new debt with a sale-leaseback?

Accepted Answer

No. A sale-leaseback is a sale, not a loan. You pay rent, but you take on no new debt. A HELOC, a cash-out refinance, and a reverse mortgage all create new debt secured by your home.

Question 5

What is the catch with a sale-leaseback?

Accepted Answer

You give up ownership and future appreciation to stay put. You become a renter in your own home, so you pay rent instead of a mortgage. For many homeowners the trade is worth it. For others, keeping ownership matters more. The comparison above shows both sides so you can decide.

The core comparison

The tradeoffs

Frequently Asked Questions