Alternative Strategy

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.

MT
Michael Thompson
NMLS #567890 · Senior Housing Specialist
Updated February 25, 2026 · 11 min read

How Sale-Leaseback Works (3 Simple Steps)

1
Sell Your Home
Company buys your home for 70-90% of market value. Close in 2-4 weeks.
2
Get Cash
Receive lump sum at closing. Pay off mortgage, debts, medical bills, or invest.
3
Rent It Back
Stay in your home as a tenant. Lease terms from 1 year to lifetime.

Sale-Leaseback Companies Compared (2026)

CompanyPayoutLease TermMarketsBuyback?Best For
EasyKnock75-90%Up to 5 years30+ statesYes (MoveAbility)Flexibility + highest payout
Truehold70-85%Up to lifetime15+ statesSelect optionsSeniors wanting to stay forever
Sell2Rent70-85%1-3 yearsSelect citiesLimitedShort-term cash needs
Local Investor65-80%NegotiableAnywhereNegotiableRural areas, custom terms

Sale-Leaseback vs. Other Options

FactorSale-LeasebackReverse MortgageHELOCCash-Out Refi
Cash Amount70-90% of value40-60%Up to 85%Up to 80%
Age RequirementAny age62+Any ageAny age
Monthly PaymentRent paymentNoneInterest onlyP&I payment
Keep Ownership?NoYesYesYes
Credit Required?NoMinimal620+620+
Speed to Cash2-4 weeks30-60 days30-45 days30-45 days
Best ForLarge lump sum, any age, poor creditSeniors 62+, monthly incomeFlexible access, good creditLower rate, large amount

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Who 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

DetailAmount
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 Term1-5 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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