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 all the equity you have available. You pay a transaction fee of 6% of the sale price, or a minimum of $15,000, plus closing costs. A traditional sale returns about 92% after commissions and fees, but you need to add any repairs that need to be made to the property. 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 2 to 6 weeks. A HELOC takes 2 to 4 weeks. A cash-out refinance takes 30 to 45 days. A reverse mortgage takes 30 to 60 days. A traditional sale averages 70 to 110 days for mid-tier properties.

Question 4

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

Accepted Answer

No. A Sale-leaseback is a sale, not a loan. After you sell, 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 cash out your equity and stay in the home as a tenant. You will pay rent instead of a mortgage. All property related costs, including taxes, insurance and HOA dues, become the responsibility of the new owner.

The core comparison

The tradeoffs

Frequently Asked Questions