If you want to access your home equity without moving, a sell-leaseback lets you sell your home to an investor and then rent it back.
While it’s possible to arrange a leaseback on your own, working with a company that specializes in these transactions can make the process more straightforward. We’ve reviewed the home sale-leaseback market and highlighted standout options below. We’ll also explain how these arrangements work, their benefits and tradeoffs, and what to consider when deciding whether one is right for you.
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Compare the best home equity agreements, home equity lines of credit, and home equity loans as alternatives if there isn’t a home sale-leaseback company in your area.
Key takeaways
- Companies that buy houses and rent them back to you pay cash for your home and let you stay as a tenant.
- The sale turns your equity into a lump-sum payment, so your monthly housing cost shifts from mortgage to rent.
- You sign over the deed at closing and give up any future appreciation the home earns after the sale.
- Rent starts at current market rates and can climb each year, so plan your budget for the full lease term.
- Compare rent, lease length, and repurchase terms across providers before you commit to an offer.
Table of Contents
- Key takeaways
- Understanding a home sell-leaseback
- The best home sale-leaseback companies
- How do sell-and-stay programs work?
- Pros and cons of sale-leasebacks in residential real estate
- Alternatives to a home sale-leaseback
- Reasons to sell your home and rent it back
- How we selected the best home sale-leaseback options
- Is a home sell-leaseback right for you?
- Home sell-leaseback FAQ
Understanding a home sell-leaseback
A home sell-leaseback, more formally called a home sale-leaseback, is a financial transaction in which a homeowner sells their property to a buyer or investor and signs a lease to stay on as a renter. The sale-leaseback enables the seller to unlock capital tied up in a valuable asset and gain financial flexibility while continuing to live in the home. Ownership transfers to the buyer at closing, which is how a home sale-leaseback works differently from traditional financing methods like a HELOC or cash-out refinance.
The best home sale-leaseback companies
In deciding which home sale-leaseback companies to recommend, we compared companies that buy your house and rent it back based on factors such as repurchase options, lease flexibility, and geographic availability. Because availability is limited in many areas, we found two options that stand out from the rest.
Best overall home sale-leaseback: Truehold
Why Truehold is one of the best
Truehold offers a single home sale-leaseback program for single-family homes, including resident perks you won’t find with other companies. From special discounts on meal deliveries and groceries to transportation and entertainment, Truehold makes it easier to afford the lifestyle you love.
Truehold also provides professional property management. It’ll handle major repairs so you don’t have to. If you decide you rather enjoy the convenience of being a Truehold tenant, you can extend your lease for as long as you’d like.
- Covers property taxes and HOA fees
- Covers essential repairs and property management
- Cash offers can be made within 48 hours
- Extend your lease for as long as you’d like
- Enjoy resident perks like discounted groceries
- Speak to a customer representative to discuss questions or home issues
- Charges a 5.5% to 6% commission for home sales
- Only available in select cities in Georgia, Indiana, Kentucky, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, and Texas
Application process
Truehold summarizes its application process in just three steps.
- Receive an offer. Fill out an online form and receive a cash offer within 48 hours.
- Complete the sale. Truehold will provide a standard home sale contract and coordinate a third-party home inspection. If everything looks good, you’ll receive the funds.
- Move when you’re ready. Extend your lease as long as you’d like and pay rent until you’re ready to move out.
Best home sale-leaseback for selling to investors: Sell2Rent
Why Sell2Rent is one of the best
Sell2Rent is a marketplace platform that allows you to choose from the best competing bids. Closing times are fast, and are they are available in all 50 states, which is unique in comparison to Truehold who is only available in select cities currently.
- Receive your funds at closing
- Homeowners can list properties in any condition
- Home repairs are covered by investors
- You can’t repurchase the home after the sale
- Less predictability of sales timing due to marketplace structure
Application process
Sell2Rent’s process is about seven steps, depending on which program you select.
- Enter your property address
- Choose which program you are interested in:
- Sell and Stay
- Sell and Move Out
- Explain why you are selling: You’ll also provide the title ownership and an estimated time in which you plan to sell.
- Confirm the type of property: You will also provide the estimated sale price, and the balance of any outstanding mortgages.
- If you selected the Sell and Stay program: You’ll have an additional step where you’ll be asked about your desired rental price, credit score, and total household income.
- Enter your contact information
- Provide the necessary documentation: This will allow Sell2Rent to correctly evaluate the property and work on an estimated offer.
How do sell-and-stay programs work?
Sell-and-stay programs—also known as home sale-leasebacks—allow you to convert your home equity into cash without moving out. Instead of borrowing against your home, you sell it outright and then stay on as a tenant.
Here’s how the process typically works:
- Get an offer: You apply with a company, which evaluates your home and makes a cash offer based on its value.
- Sell your home: If you accept, you complete the sale and receive a lump-sum cash payment, similar to a traditional home sale.
- Sign a lease: At closing, you enter into a lease agreement that allows you to remain in the home as a renter.
- Pay rent: You make monthly rent payments based on the terms outlined in your lease.
- Stay or move later: Depending on the company, you may have options to renew your lease, move out, or, in some cases, repurchase the home.
This setup can appeal to homeowners who need liquidity but want to avoid relocating. However, it’s a different business model than a HELOC or cash-out refinance—you’re giving up ownership and future appreciation in exchange for immediate cash and the ability to stay in your home. For more information about how a home sale-leaseback program works, check out our in-depth guide.
Pros and cons of sale-leasebacks in residential real estate
Residential leaseback agreements can offer advantages and disadvantages, both of which are important to weigh when deciding whether it might be right for your needs.
Here are the main pros and cons to know about home sale-leasebacks.
Pros
- Access your home equity without taking on debt
- You receive a lump sum of cash from the sale without adding a monthly loan payment, like a HELOC or home equity loan.
- Stay in your home after selling
- Leasebacks let you remain in place, giving you time to plan your next move or maintain your current lifestyle.
- Reduce homeowner responsibilities
- Some companies cover costs like property taxes, insurance, and maintenance, which can simplify your monthly budget.
- Faster access to cash
- These transactions can often close more quickly than a traditional home sale, especially compared to listing on the open market.
Cons
- You give up future appreciation
- Once you sell, you no longer benefit from increases in your home’s value unless a buyback option is available.
- Fees and closing costs still apply
- Like a traditional sale, you may be responsible for transaction fees, closing costs, or other charges.
- Rent may be higher than your previous mortgage
- Monthly rent is based on current market rates, which can exceed what you were paying as a homeowner.
- Ongoing rent obligations and risk
- Rent can increase over time, and missing payments could lead to penalties or even eviction.
- You stop building equity
- Monthly payments go toward rent rather than ownership, so you’re no longer growing your stake in the property.
- Fewer consumer protections
- Sale-leasebacks aren’t regulated the same way as mortgages, which can mean less standardization and fewer safeguards for homeowners.
Alternatives to a home sale-leaseback
Home sale-leasebacks aren’t the only way to withdraw equity. Other options you might consider include:
- Home equity investment (HEI) is also known as a home equity sharing agreement (HESA) or home equity agreement (HEA), and is a contract between a homeowner and an investment company. If you qualify, the investment company will pay you a lump sum in exchange for a share of your home’s future value—often 15% to 20%, depending on when you settle.
- Home equity loans allow you to withdraw your equity in one lump sum, which you repay monthly. You may be able to get more cash with a home equity loan than with a sale-leaseback, but home equity loan credit requirements are often stricter.
- Home equity lines of credit (HELOCs) let you draw from your equity as needed and repay as you go. HELOCs can be a solid choice if you need an open-ended funding source, but you may need a lower loan-to-value ratio (LTV) than you would for a home sale-leaseback.
- Cash-out refinancing allows you to replace your current mortgage with a new one and pocket the difference in cash. These are best suited to homeowners who can qualify for a lower rate on the new mortgage, but a home sale-leaseback may be the better option if you don’t want to restart your mortgage term.
- Reverse mortgages are designed for older homeowners who need supplemental cash but don’t want to sell. Reverse mortgage payments are deferred until the homeowner either moves out or passes away, but unlike with a sale-leaseback, your heirs may be responsible for coordinating repayment.
Several of these alternatives, including home equity loans, HELOCs, cash-out refinancing, and reverse mortgages, involve borrowing against your home equity and repayment obligations. An HEI works differently: you receive cash in exchange for a share of your home’s future value rather than taking out a traditional loan.
Unlike a home sale-leaseback, these alternatives allow you to retain ownership of your home. With a home sale-leaseback, you must sign over your deed to the leaseback company.
Reasons to sell your home and rent it back
A home sale-leaseback could be better if you’d rather avoid an extra debt payment, don’t qualify for a reverse mortgage, or want to sell your home and still live in it while planning your next move. Here are specific scenarios where a leaseback agreement could make sense.
| If you… | A leaseback allows you to… |
| Want to downsize your home | Move at your own pace |
| Need money to cover large bills, including medical care bills | Convert your equity to cash |
| Have concerns about a market downturn | Sell your home for top dollar and still live in it |
| Need cash to pay for college | Cover expenses while staying in your home or downsizing |
How to decide on a home sale-leaseback company
Finding the right home sale-leaseback company to work with can depend on your specific needs and situation. If you think a leaseback agreement could be right for you, researching your options is the next logical step.
Here are important factors to consider when comparing home sale-leaseback companies:
- How are leaseback programs structured? Are they sell-and-rent agreements or sell-and-move-out?
- Do you have an option to buy the home back later? If so, what price would you pay?
- How much home value does the company allow you to withdraw in cash?
- How long could you stay in the home if entering into a sell-and-rent leaseback? And would you be able to extend the term? Truehold’s indefinite lease extensions are a rarity, so be clear on lease parameters before agreeing to a leaseback.
- What costs, if any, will you pay at closing? What will your monthly rent be, can it increase over time, and what ongoing costs are you responsible for?
- How long does funding take?
- Is there an option to prequalify or compare offers without committing to a leaseback agreement or affecting your credit score?
- Are there any minimum credit score, income, or DTI requirements you must meet?
Leaseback companies invest in your home to earn a return, so their offer reflects both current value and their target yield.
Are home sale-leaseback companies trustworthy?
Extensive research and rigorous analysis are at the core of our selection process, so you can feel confident that any company we recommend has been thoroughly vetted.
Still, reading third-party reviews can be a smart way to supplement your research because they can give you a clearer picture of real customer experiences with the home sale-leaseback company.
Positive reviews should highlight efficiency, professionalism, and a smooth selling process. Negative feedback may focus on appraisal outcomes and whether rent costs are higher than expected.
When comparing companies, pay close attention to how transparent each provider is about pricing, lease terms, and long-term costs. If anything feels unclear, it’s worth asking more questions or exploring other options before moving forward.
How to apply for a home sale-leaseback
Applying for a home sale-leaseback will vary by company. If you’ve identified a provider you’d like to work with, the application process might look like this.
- Prequalify: Leaseback companies may allow you to undergo an initial prequalification over the phone or online to see what program or terms you qualify for. That could be worth your time if you’d like to compare offers, but it’s important to note whether a hard credit check is required.
- Provide details about your home: The leaseback company may request information about your home, including your current mortgage balance, your home’s estimated value, and its location.
- Apply: You may need to complete specific documents to apply for a home sale-leaseback. The leaseback company may also perform a hard credit check, but you’ll need to authorize it first.
- Accept the offer: Once the leaseback company reviews the information you provided about your home and finances, you’ll receive an offer detailing the purchase price and lease terms. If the terms work for you, accept it and proceed to closing.
- Get your cash and pay any necessary fees: At closing, you’ll sign over the title and pay the agreed-upon purchase price, minus any applicable fees and closing costs. You’ll also sign the lease agreement at this stage, which sets your monthly rent and lease duration. Your tenancy begins at closing, so you can remain in your home without interruption.
The leaseback company may require an appraisal to determine the home’s value. You won’t always need a real estate agent, but you might consult with one if you have questions or want a second opinion on whether it’s the right move. Let the leaseback company know upfront if you’re working with an agent.
How we selected the best home sale-leaseback options
Since 2020, LendEDU has evaluated financial institutions to help readers find the best home sale-leaseback programs. Our latest analysis reviewed 92 data points from 4 companies, with 23 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.
These data points are organized into broader categories, which our editorial team weighs and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
Higher star ratings are ultimately awarded to companies that create an excellent experience for homeowners transitioning to renters. This includes offering online eligibility checks, competitive valuations, affordable lease agreements, and unique benefits.
Is a home sell-leaseback right for you?
A home sell-leaseback is right for you if you need to pull cash out of your house and want to stay living in it. It’s the wrong strategy if keeping ownership, building equity, or leaving the house to your heirs matters to you. Run the offer against a HELOC, HEI, or reverse mortgage before you decide.
Home sell-leaseback FAQ
Is a home sell-leaseback a good idea?
A home sell-leaseback is a good idea when you need cash from your equity and want to keep living in the house without taking on a new loan payment. You’ll trade ownership and future appreciation for a lump sum and rent for the length of the lease. Whether it pays off depends on your goals, the offer on the table, and the terms you sign as the lessee.
What happens at the end of a home sale-leaseback?
At the end of a home sale-leaseback, your options are set by the contract you signed: move out, renew the lease, or buy the home back if a repurchase option is included. Confirm your exit terms in writing before you sign.
How is rent determined in a home sale-leaseback?
Rent in a home sale-leaseback is based on your home’s appraised value and comparable rental rates in your area. The company also factors in the return it needs as the new property owner. Ask for the starting rent, annual increases, and any added fees before you accept an offer.
What is a leaseback?
A sell-leaseback, or sell-and-stay program, is an arrangement in which a property owner sells their property and then rents it back from the buyer. Leasebacks allow the property owner to withdraw equity from their asset without vacating.
For homeowners, a residential sale-leaseback allows you to sell an owner-occupied home and continue living there as a renter under the terms of a lease agreement.
What is a model or display sale-leaseback?
Model or display sale-leasebacks refer to homebuilders selling a finished home and then leasing it back. These homes are typically part of planned communities, each with a similar layout or design.
Unlike a traditional sale-leaseback, the builder doesn’t live in the home. Instead, they use it as a display to show prospective buyers of ongoing builds.
What does a good home sale-leaseback agreement look like?
What constitutes a good home sale-leaseback agreement may depend on your situation. Understanding the terms of your rent-back agreement, including your proposed rent, can help you evaluate whether you’re getting a fair deal.
Your lease length should be long enough to suit your current needs but flexible enough to accommodate you if those needs change. Rent should align with your home’s value and your local market.
Your end-of-lease options are important too. How will you benefit if the leaseback company sells the property? Can you repurchase the home yourself? How much would it cost? Consider exploring other offers if anything in your agreement seems too expensive, restrictive, or unclear.
How do I initiate a sale-leaseback on my home?
You can initiate a sale-leaseback with a reputable leaseback company or an independent buyer. Both options involve an assessment of your home’s value and then selling the home and signing a formal lease.
If you contract with a company, it will coordinate the process for you. If you go it alone, you’ll have more control over—and bear more responsibility for—the transaction.
In either case, you can enlist a real estate agent’s help. Partnering with an agent can make it easier to navigate the transaction and better ensure you’re getting a good deal.
How long does getting funds from a home sale-leaseback take?
The processing time for home sale-leaseback agreements can vary by company. A typical time frame is anywhere from 30 days to six weeks.
About our contributors
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Written by Sarah Sheehan, MATSarah Sheehan is a writer, educator, and analyst who focuses on the impact of health, gender, and geography on financial equity. Her ultimate goal? To live beyond the confines of chasing the next dollar—and to teach everyone else how to do the same.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.