Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Stay Frank Review 2024: Residential Home Sale-Leaseback and Home Equity Agreements Updated Nov 18, 2024 10-min read Reviewed by Cassidy Horton Reviewed by Cassidy Horton Expertise: Banking, insurance, home loans Cassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than a thousand times online. Learn more about Cassidy Horton Free Quote Home Equity Agreement No monthly payments 580 minimum credit score You remain the homeowner You share future home appreciation Potentially expensive Limited information available online Closing time2 monthsMax. LTV70%Eligible home typesSingle-family homesEligible markets10 statesAvailable in Arizona, Nevada, Colorado, Florida, Georgia, North Carolina, Ohio, Oklahoma, Texas and Tennessee Home Sale-LeasebackView Rates Quick closing times No minimum credit score Can stay in the home as a tenant for up to five years You’re no longer the homeowner Tenant lease capped at five years You stop building equity Closing time4 weeksEligible homesSingle-family homesEligible markets10 statesAvailable in Arizona, Nevada, Colorado, Florida, Georgia, North Carolina, Ohio, Oklahoma, Texas, and Tennessee Stay Frank can help you access some of the equity you’ve built up in your property using a home sale-leaseback or a home equity agreement. Stay Frank may be worth exploring if you have significant equity but a poor credit score that would disqualify you from other financing options. It can also make sense if you’re looking to transfer out of homeownership in the near future but want to stay in your home just a bit longer first. Home sale-leasebacks and HEAs are different programs, so here’s our full Stay Frank review to help you decide. If you choose to move forward, just be sure to read all the fine print to know what you’re committing to. Table of Contents Skip to Section How do Stay Frank’s home equity agreements work?How do Stay Frank’s home sale-leasebacks work?Alternatives to Stay FrankHow to get started with Stay Frank How do Stay Frank’s home equity agreements work? Stay Frank’s home equity agreements (HEAs) allow you to access a portion of your home’s equity without giving up homeownership, taking on additional debt, or making monthly payments. Stay Frank gives you a lump sum now in exchange for a future portion of your home’s appreciation. When the agreement term ends or you decide to sell your home, you’ll repay Stay Frank based on the home’s appreciation and the percentage of equity it purchased. Here’s a breakdown of how Stay Frank’s HEAs work: DetailAmountInvestment amountUp to 70% of the home’s valueTerm lengthNot specified (usually 10 – 30 years)Repayment optionSell home or buy out agreementRepayment amountA percentage of your home’s appreciation Who is eligible for a Stay Frank home equity agreement? Because an HEA isn’t a loan, Stay Frank has more lenient eligibility requirements than other companies. Here are the primary requirements you’ll need to meet: RequirementDetailPropertiesSingle-family homesStatesAZ, CO, FL, GA, NC, NV, OH, OK, TN, TXMax. LTV70%Min. credit score580 How much does a Stay Frank HEA cost? Stay Frank doesn’t provide much information on its fee structure or how repayment is calculated (a major drawback in our book). But based on similar HEA providers, Stay Frank’s fee structure may look like this: Upfront costs. You may be responsible for appraisal fees, title insurance, and other closing costs. Investment amount. Stay Frank will give you a lump sum based on your home’s current value and the agreed-upon investment percentage. Appreciation sharing. When you repay the agreement, Stay Frank gets its initial investment plus a portion of your home’s appreciation. For example, say your home is worth $400,000, and Stay Frank invests $80,000 for a 20% stake in your home’s future appreciation. After 10 years, your home is worth $500,000. You’d repay Stay Frank its initial $80,000 plus 20% of the $100,000 appreciation ($20,000), for a total of $100,000. Pros and cons Pros No monthly payments Unlike traditional loans, you don’t make regular monthly payments. No added debt The agreement doesn’t count as debt on your credit report. Money to use for anything You can use the funds for any purpose. Lower credit score requirements You need a minimum credit score of 580 to qualify. Cons Shared appreciation You give up a portion of your home’s future value. Potentially expensive The cost can be high if your home appreciates more than expected. Vague terms Stay Frank has limited information online about how its HEAs work in detail. Limited availability Stay Frank HEAs are only available in select states and for certain property types. How do Stay Frank’s home sale-leasebacks work? With Stay Frank’s home sale-leaseback program, you sell your home to an investor and lease it back as a renter. You get to stay in your home temporarily but with all the proceeds you’d get for selling your home upfront. Here’s how it works: You sell your home to Stay Frank or one of its investor partners at fair market value. You then lease the home back as a resident for up to five years. At the end of the lease term, you can move out or potentially buy back the home. The amount you receive for your house is based on its current market value, minus any outstanding mortgage balance and other home-related debts. Stay Frank aims to offer a price comparable to what you’d get selling through a traditional realtor. How long can you stay in your home? The lease duration is anywhere from a few months to five years, with two years being the average. Rent payments are set at market rates for similar properties in your area. Stay Frank gives you three ways to make rent payments: Full prepay: Use part of your home sale proceeds to pay rent upfront for the entire lease term. Partial prepay: Pay a portion upfront to reduce monthly payments. Full rent cost: Pay the full monthly rent and keep all sale proceeds for other uses. Stay Frank doesn’t specify strict home requirements beyond needing to be in good condition without major structural issues. You’ll usually pay these fees: Closing costs (lower than traditional sales because no realtor commission applies) Inspection fee (covered by Stay Frank) Renters insurance (your responsibility as a tenant) Property taxes (only the portion you owed that year up until your closing date) For example, say your home is worth $400,000, and you owe $150,000 on the mortgage. Stay Frank offers to buy your home for $400,000. After paying off your mortgage, you get $250,000 minus closing costs. If the market rent for your home is $2,000 per month, Stay Frank might offer you a lease at $2,000 per month. You could choose to prepay $48,000 for a two-year lease ($2,000 x 24 months), leaving you with $202,000 in cash (minus closing costs) to use as needed. Who is eligible for a Stay Frank home sale-leaseback? Stay Frank has flexible eligibility requirements compared to traditional lenders. The company states on its website that it cares more about your property’s value and your overall financial situation rather than strict credit or income requirements. Here are the general eligibility requirements for a Stay Frank home sale-leaseback: RequirementDetailsPropertiesSingle-family homesStatesAZ, CO, FL, GA, NC, NV, OH, OK, TN, TXMax. LTV80%Min. credit scoreNo minimum Pros and cons Pros Quick access to home equity Get a lump sum payment within about four weeks. No minimum credit score Sale-leasebacks aren’t loans, so you don’t need to worry about credit score or DTI requirements. Stay in your home Avoid the immediate stress and costs of moving by staying in your home for up to five years. Potentially lower monthly payments Rent may be less than your current mortgage payment, and you can use the proceeds from your agreement to cover the rent. Time to plan Use the lease period to improve your financial situation or plan your next move. Cons Loss of homeownership You’re selling your home and becoming a tenant. Limited lease duration You’ll need to move or find alternative housing after the lease ends (typically up to five years). No equity buildup As a tenant, you’re no longer building equity in the property. Limited control You lose the ability to make major decisions about the property. What do customers say about Stay Frank? Because Stay Frank is a newer company, its customer reviews are limited. We located a few reviews on Google—seven, with an average review of 4.0 out of 5 stars. This makes it hard to get a full picture of the experience. A few positive comments emphasize professional and responsive service. One customer reported unwanted follow-up calls after opting not to sell. With fewer ratings, it can be challenging to assess consistency, so keep this in mind as the company builds its reputation and more feedback becomes available. Alternatives to Stay Frank Stay Frank’s main advantage is that you can shop for sale-leasebacks and HEAs with the same company. Its closing times are also quick. However, a major drawback is its limited geographic availability. Right now, it’s only available in Arizona, Nevada, Colorado, Florida, Georgia, North Carolina, Ohio, Oklahoma, Texas, and Tennessee. With that in mind, these other home equity companies and alternatives that might be a better fit: Home equity agreement alternatives Stay Frank’s credit score requirement (580) is higher than several alternatives. For instance, Unlock, Point, and Hometap all require minimum credit scores of 500. Unlock, Point, and Hometap are also more transparent about their specific terms and costs. Stay Frank will lend up to 70% of your home equity, while Hometap will lend up to 75% and Unlock will lend up to 80%. Those HEA companies serve different states, so if you fall outside of Stay Frank’s area, one of these other companies may be a better fit. CompanyBest for…Rating (0-5) Best Overall 4.8 Free Quote Best for Longer Terms 4.6 Free Quote Best for Partial Payments 4.5 Free Quote Home sale-leaseback alternatives Stay Frank and Truehold extend sale-leasebacks to single-family residential homes. But overall, Truehold may be better for those who are looking to stay in their home long-term and live in its service area. Stay Frank generally lets you lease your home back for up to five years once you sell it. Truehold is one of the only companies that lets you extend your lease indefinitely for as long as you’d like. Also, Truehold charges a 5.5% fee when you sell your home. Stay Frank doesn’t disclose this information. CompanyBest for…Rating (0-5) Best Overall 4.8 Learn More How to get started with Stay Frank Getting started with Stay Frank is a straightforward process for homeowners interested in unlocking their home’s value through a home equity agreement or a home sale-leaseback. Here’s how to explore each option with Stay Frank, including application steps for both products. How to apply for a home equity agreement Check eligibility requirements: Stay Frank requires that you own a primary residence with sufficient equity. Ensure that your home and financial profile meet these standards before starting the application. Submit a preliminary application: Complete the online application with essential details about your property, finances, and equity to get an initial response from Stay Frank. Property valuation and offer: Stay Frank will arrange an appraisal of your home to assess its value. Based on this valuation, it will make an offer outlining the terms of the equity agreement, including the upfront payout amount and the share of home appreciation that will go to Stay Frank. Review and accept terms: Review the offer, which will outline how much equity you’ll access upfront and how the appreciation share works. Evaluate the costs and benefits of the agreement, especially regarding your home’s future value. Complete agreement signing: If you accept the offer, sign the final documents to close the agreement. After the signing, you’ll get your funds, which you’re free to use as needed. Manage your equity agreement: You continue living in your home with full ownership rights, but keep in mind the terms regarding appreciation when planning for future real estate decisions. How to apply for a home sale-leaseback Assess eligibility: Before applying, review Stay Frank’s eligibility criteria to ensure that a sale-leaseback aligns with your homeownership goals and financial needs. This includes owning a single-family residence in eligible locations and having sufficient home equity. Submit initial information: Begin by submitting basic property and financial information through Stay Frank’s website. This step provides Stay Frank with preliminary details to determine potential funding options. Get a home valuation: Stay Frank typically arranges for a valuation of your home to assess its market worth, which forms the basis of any offers it makes. Review offer terms: Once Stay Frank makes an offer, review the terms. The offer often includes the home sale amount, lease terms, monthly rental payments, and any associated fees. Make sure to understand all terms and ask questions if anything is unclear. Accept the offer and close the deal: If the terms align with your needs, accept the offer to proceed. At closing, Stay Frank purchases the home, and you’ll sign a lease allowing you to remain in the property as a tenant. Transition to leasing: After closing, you can remain in your home under the agreed lease terms, with the option to renew or exit as specified in the leaseback agreement.