Sale-Leaseback 2026: Sell Your House and Keep Living In It
Need cash but don't want to move? A sale-leaseback lets you sell your home for 70-90% of its value and rent it back. On a $400K home, get $280,000-$360,000 in cash while staying put. Works at any age (unlike reverse mortgages which require 62+). Companies like EasyKnock, Truehold, and Sell2Rent make it easy. Here's everything you need to know.
How Sale-Leaseback Works (3 Simple Steps)
Sale-Leaseback Companies Compared (2026)
| Company | Payout | Lease Term | Markets | Buyback? | Best For |
|---|---|---|---|---|---|
| EasyKnock | 75-90% | Up to 5 years | 30+ states | Yes (MoveAbility) | Flexibility + highest payout |
| Truehold | 70-85% | Up to lifetime | 15+ states | Select options | Seniors wanting to stay forever |
| Sell2Rent | 70-85% | 1-3 years | Select cities | Limited | Short-term cash needs |
| Local Investor | 65-80% | Negotiable | Anywhere | Negotiable | Rural areas, custom terms |
Sale-Leaseback vs. Other Options
| Factor | Sale-Leaseback | Reverse Mortgage | HELOC | Cash-Out Refi |
|---|---|---|---|---|
| Cash Amount | 70-90% of value | 40-60% | Up to 85% | Up to 80% |
| Age Requirement | Any age | 62+ | Any age | Any age |
| Monthly Payment | Rent payment | None | Interest only | P&I payment |
| Keep Ownership? | No | Yes | Yes | Yes |
| Credit Required? | No | Minimal | 620+ | 620+ |
| Speed to Cash | 2-4 weeks | 30-60 days | 30-45 days | 30-45 days |
| Best For | Large lump sum, any age, poor credit | Seniors 62+, monthly income | Flexible access, good credit | Lower rate, large amount |
Exploring Your Options? Compare All Alternatives
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Compare All Options — FreeWho Should Consider a Sale-Leaseback?
- Seniors under 62 who can't qualify for reverse mortgages
- Homeowners with poor credit who can't get HELOCs or refinance
- People facing foreclosure who need cash fast to pay off the mortgage
- Anyone needing a large lump sum for medical bills, business, or debt payoff
- Homeowners who want to downsize later but aren't ready to move yet
Risks and Downsides to Consider
Important Warnings:
- • Below-market price: You get 70-90% of value, not 100%. On a $400K home, you "lose" $40K-$120K.
- • Loss of appreciation: If your home value rises 5%/year, the buyer benefits, not you.
- • Rent increases: Some leases allow annual rent increases of 3-5%.
- • Lease termination: If the company sells, your lease terms may change.
- • No more homeowner tax benefits: You lose mortgage interest deduction and property tax deduction.
- • Scam risk: Work only with established companies. Get a real estate attorney to review contracts.
Real Example: $400,000 Home Sale-Leaseback
| Detail | Amount |
|---|---|
| Home Market Value | $400,000 |
| Sale-Leaseback Offer (80%) | $320,000 |
| Remaining Mortgage Payoff | -$150,000 |
| Closing Costs (~2%) | -$6,400 |
| Cash in Your Pocket | $163,600 |
| Monthly Rent (estimated) | $2,200-$2,800/month |
| Lease Term | 1-5 years (varies) |
Frequently Asked Questions
What is a residential sale-leaseback?
A residential sale-leaseback lets you sell your home to a company or investor and immediately rent it back. You get 70-90% of your home's value in cash while staying in the home as a tenant. It is an alternative to reverse mortgages, HELOCs, or traditional home sales for accessing home equity without moving.
How much money do you get from a sale-leaseback?
Sale-leaseback companies typically pay 70-90% of your home's fair market value. On a $400,000 home, you would receive $280,000-$360,000 in cash. The discount compensates the buyer for transaction costs and rental management. Some companies offer higher percentages for homes in desirable markets.
Is sale-leaseback better than a reverse mortgage?
It depends. Sale-leaseback gives you more cash upfront (70-90% vs 40-60% for reverse mortgages) and works at any age (reverse mortgages require 62+). However, you lose ownership and equity appreciation. Reverse mortgages let you keep ownership but accrue interest. Sale-leaseback is better for large lump-sum needs; reverse mortgages for monthly income.
What companies offer residential sale-leaseback?
Major sale-leaseback companies in 2026: EasyKnock (nationwide, 75-90% of value, up to 5-year lease), Truehold (15+ states, 70-85% of value, lifetime lease option), Sell2Rent (select markets, competitive rates), and local real estate investors. Always compare at least 3 offers and read the full lease agreement.
Can I buy my house back after a sale-leaseback?
Some programs include a repurchase option. EasyKnock's MoveAbility program lets you buy back or receive proceeds from a future sale. Truehold offers select repurchase options. Terms vary significantly — read the contract carefully. If buying back is important, negotiate this upfront before signing.
What are the tax implications of a sale-leaseback?
The sale portion is treated as a home sale for tax purposes. If you lived in the home 2+ of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married) in capital gains from taxes. Rent payments are not tax-deductible for personal residences. Consult a tax professional for your specific situation.
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