Under a leaseback agreement, you sell your home to an investor and then rent it back, allowing you to access your home’s equity without having to move out.
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 a standout option below. If that option isn’t available for you, we’ve rounded up the best alternatives to consider.
We didn’t find any matches from our top picks based on your filters. However, we’ve found other products that could be a great fit. Compare these options or adjust the filters.
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The best option for companies that buy your house and rent it back
In deciding which companies to recommend, we considered several factors. Which companies offer the most homeowner-friendly repurchase options? Which ones provide flexible, long-term leases? Which ones serve the widest geographic area?
All other features considered, local availability is one of the most important. We found one option that stands out amongst the rest, as there are limited solutions available.
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.
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 tradeoff 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.
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
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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.
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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.
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Reduce homeowner responsibilities
Some companies cover costs like property taxes, insurance, and maintenance, which can simplify your monthly budget.
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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
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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.
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Fees and closing costs still apply
Like a traditional sale, you may be responsible for transaction fees, closing costs, or other charges.
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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.
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Ongoing rent obligations and risk
Rent can increase over time, and missing payments could lead to penalties or even eviction.
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You stop building equity
Monthly payments go toward rent rather than ownership, so you’re no longer growing your stake in the property.
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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 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. These 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.
The main difference between these options and a home sale-leaseback is that they require you to take on debt.
These alternatives also 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 or don’t qualify for a reverse mortgage. 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 medical 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 ongoing costs are you responsible for, if any?
- 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?
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. Looking at Truehold reviews, for example, can give you a clearer picture of real customer experiences with the home sale-leaseback company.
Truehold reviews
| BBB | Trustpilot | ||
| Truehold | 3.48/5 (21 reviews) | 2.7/5 (8 reviews) | 4.0/5 (246 reviews) |
Positive reviews frequently highlight efficiency, professionalism, and a smooth selling process. Negative feedback tends to focus on appraisal outcomes and rent costs that may be 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.
Is Truehold a scam?
Truehold is not a scam. It operates a legitimate home sale-leaseback model, allowing homeowners to sell their property for cash while continuing to live in it as a renter. The company has real customer feedback, a public-facing platform, and a clearly defined process.
Legitimacy doesn’t mean it’s the right fit for everyone, though. With Truehold, you’re giving up homeownership and future appreciation in exchange for liquidity and flexibility, which can be a significant long-term tradeoff. Rent terms, potential increases, and lease conditions are especially important to understand before moving forward.
For a deeper breakdown of how the program works, along with the pros and cons, see our complete Truehold review.
How to apply for a home sale-leaseback
Applying for a home sale-leaseback will vary by lender. If you’ve identified a lender you’d like to work with, the application process might look like this.
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.
FAQ
What is a leaseback?
A 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.
Residential sale-leasebacks involve owner-occupied homes, while commercial sale-leasebacks involve buildings used for business purposes. The leaseback process is the same, regardless of the property’s intended use.
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. However, your lease terms and proposed rent are preliminary indicators of whether you’re getting a fair shake.
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.
How we selected the best home sale-leaseback option
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.
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.