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What we like:
The option to buy-back your house or move out
|Annual Rent %||9.50%|
|Cash Out Value||$60,000 – $450,000|
|Required LTV Ratio||50% or less|
|Lease Lengths||1 – 5 years|
EasyKnock is a New York City-based company founded in 2016. It offers the first commercialized residential sale-leaseback program in the United States, which allows homeowners to access their home value without moving.
EasyKnock differs distinctly from reverse mortgages and home equity lines of credit. With its model, homeowners sell their houses to EasyKnock and stay in their homes as renters. EasyKnock says its mission is to help homeowners achieve financial freedom by accessing the value of their home through their innovative programs: Sell & Stay and MoveAbility.
In this review:
Sell & Stay Review
The technical term for EasyKnock’s Sell & Stay product is a residential sale-leaseback.
With the Sell & Stay program, EasyKnock buys your house and you receive its value. You continue to live in your home while paying monthly rent. Depending on the state, you can buy your house back or move at any time.
The first step is completing a qualification form online. An EasyKnock specialist will then schedule a call to learn more about your goals and put together a custom offer for you. When you’re ready to move forward, EasyKnock will send you a purchase agreement to review and sign.
Next, EasyKnock will perform due diligence, meaning an appraisal, title search, credit report, etc. If everything comes back satisfactory, you will receive a sale and lease agreement. Much like a standard home sale, once both parties have signed the agreement, you would receive your money through a wire. EasyKnock can close in as little as 9 days.
You may decide to buy your house back at any time for a price that has been agreed to in your contract, known as the repurchase price. You may also decide to move at any time, by simply telling EasyKnock, and they will put the house on the market with the realtor of your choosing. Once it sells, you would receive the difference between the sale price and the Option Price, this includes any additional value if the house appreciates.
EasyKnock – Cash Out Without Moving Out
- Access your home equity in as little as 21 days
- No Minimum credit score or W2 Requirement
- Customized agreements that work for you
Basic Information: Rates, Terms, Fees, and Limits
- Credit Requirements: Since EasyKnock offers sale-leasebacks, not loans, they don’t require a minimum credit score.
- Fees: EasyKnock’s processing fee is 2.5%, and as with all home sales, there are the applicable closing costs. They charge market rent.
- Cash Out Value: Ranges from $60,000 to $450,000.
- Required LTV Ratio: Sell and Stay does have a maximum LTV ratio, contingent upon home value. For most individuals, if your LTV is 50% or less they can offer a plan for you. You can calculate your LTV ratio by dividing your current mortgage balance by the current value of your house.
- Who It’s Good For: The company touts its program as an option for people looking to access the value of their home without moving, but don’t qualify for or want to deal with loans.
- Lease Lengths: EasyKnock offers renewable 12-month lease terms with the option to terminate at any point.
- Pricing: Homeowners can negotiate the sale price, the length of the lease, and the price of their rent.
Pros & Cons of Sell & Stay
- Lenient Eligibility Requirements: One of the main benefits of Sell & Stay from EasyKnock is that you may be eligible for it even if you don’t qualify for a home equity loan or reverse mortgages. Since EasyKnock takes into consideration you and your house, unlike banks and lenders who have strict requirements for types of income and credit score, they are able to open their opportunities up to a broader range of customers.
- Short Time to Close: EasyKnock says it can take as little as 9 days to get you your money. Some lenders and banks can take up to 30 days or more.
- Great Website: EasyKnock’s website makes it easy to understand the products offered and it is user-friendly and simple to navigate.
- Personal Touch: EasyKnock takes the time to understand who you are and creates a deal specifically designed for you.
- Have to Pay Rent: The main downside of EasyKnock’s product is that you become a renter in the house that you previously owned.
- Costs of Program: If you decide to buy back the house, you must repurchase it for the cash amount funded to you plus an average of 3% annually. Or, if you decide to move, EasyKnock is to be paid that same amount when the house sells.
EasyKnock MoveAbility Review
If you are looking for a bridge loan, or want to sell your house but stay put for a while until you find your new home, MoveAbility is the ideal option for you.
With MoveAbility, you can get cash for your house in as little as 9 days. Then, when you’re ready to sell, EasyKnock works with the realtor of your choice to list your house on the market.
You pay monthly rent and have the flexibility to lease your house back for up to 18 months, so you move when you’re ready.
This can leave you time to build or buy your dream home, which can be especially beneficial if you don’t qualify for a bridge loan.
Basic Info: Rates, Fees, Terms & Limits
- Credit Requirements: None
- Fees: 2.5% of your home’s market value plus rent.
- Purchase Price: EasyKnock purchases the property at its full appraised value and gives you up to 75% cash at closing, and the remaining amount as an Option.
- Who It’s Good For: People who want to sell their home quickly but aren’t ready to move.
- Lease Lengths: Lease lengths are 6 months long, but can be renewed up to two times.
Pros and Cons of MoveAbility
- Getting money out of your home is easy: You aren’t taking out a loan with EasyKnock, so you don’t have to meet typical qualification requirements necessary for a cash-out refinance loan or other home equity products.
- Your debt-to-income ratio and credit score are less important factors: You can access your home’s value even if you aren’t an ideal borrower.
- Funds can be accessed quickly: It normally takes a long time to sell your house. But you don’t have to worry about this with EasyKnock. Most people get their money in around 9 days.
- You don’t have to move out once you sell the house to Easy Knock: Since you’ll no longer be an owner, you don’t have to worry about all the costs of homeownership, such as property taxes and insurance.
- You no longer own your home: With a home equity loan or refinance loan, you still retain ownership of your home and can benefit from property appreciation.
- You must pay rent: While you were previously an owner and building equity, you’re now a tenant. If you want to stay put in your home and rent, the money you pay each month goes to your landlord.
- Borrowing can be expensive: You have to pay rent for your home and you have to pay a fee to EasyKnock equal to 1.5% of your home’s value.
How Home Equity Works
Home equity is the value of your home that you fully own and cannot be claimed by a lender. It is calculated by subtracting any outstanding loan balances from the home’s market value. If the property value of a home increases or if the outstanding loan balances are reduced, then the home equity increases.
Home equity is an asset. If you have equity and you sell your home, you can use the equity toward buying a new one. Of course, you could also borrow against your home’s equity through a reverse mortgage or line of credit.
Using a loan to tap your home equity does come with risks. In these situations, your home is your collateral, and if you can’t repay your loan, you could lose your home.
EasyKnock’s Sell & Stay and Moveability programs are interesting alternatives for people who want to access their home value without dealing with banks or lenders. It provides fewer risks compared to traditional options like a reverse mortgage. However, it does come at a cost and it might not be the right option for everyone. To see alternative options, check out the best home sale-leaseback companies.
Ready to learn more about EasyKnock’s Sell & Stay product?
Cash Out Amount
$60,000 – $450,000
1 – 5 years
Author: Christy Rakoczy