Each EasyKnock program lets you live in your house while you pay rent. The program you choose depends on the length of time you plan to stay on your property and whether you want to repurchase it later. EasyKnock doesn’t require a high credit score or a low debt-to-income ratio.
EasyKnock offers consumers alternatives to reverse mortgages, bridge loans and equity lines of credit. The company’s three programs pay you for your home. You continue to live on your property and pay rent, either indefinitely or until you’re ready to move. You can cash out on your property to pay down debt instead of using a debt consolidation service. Some EasyKnock customers use the proceeds for a down payment on a new home, a construction loan or diversifying their retirement portfolios.
- Suitable for those with less-than-stellar credit
- Can be a better option than a bridge or equity loan
- Fast closing
- You no longer pay property taxes, homeowners insurance and HOA fees
- Long-term renters can easily estimate future rent payment increases
- You lose legal ownership of your home, temporarily or permanently
What is an EasyKnock Sale-Leaseback Program?
A sales-leaseback program entails a homeowner selling their house, then leasing it back to rent and live in the home. EasyKnock is not a bank and works with consumers turned down by a financial institution. The company provides sale-leaseback arrangements for single-family homes, condos and townhomes.
EasyKnock is not a reverse mortgage company and does not offer home equity loans. The programs provide a cash offer for your home without losing the benefit of living on the property. You can rent indefinitely or short-term from EasyKnock. One program offers the option to buy your home back at any time.
EasyKnock Sell & Stay
With EasyKnock Sell & Stay, the company buys your home from you. You use the cash for anything you want, then pay rent to stay in your house. EasyKnock is your landlord as long as you live in your home. You have the option to repurchase the house later when your financial situation improves.
Sell & Stay Lease Details
Rent the home as long as you want to and terminate the lease penalty-free at any time. The Sell & Stay lease renews yearly. EasyKnock says rent payments increase by the annual Consumer Price Index or 2.5%, whichever is greater. We assume the rate increases in line with the CPI year-over-year percentage increase, not the actual two-digit index number.
Making an offer to buy a house contingent on the sale of your current home is often stressful. If a competing offer with no contingency comes along, you will likely lose the contract. Then you’ll start your home search over again, only to make another contingent offer.
EasyKnock MoveAbility allows you to buy real estate with no sale contingencies. The company buys your home and then rents it to you until you move. Are you considering building a house? MoveAbility saves the hassle of putting belongings in storage and moving to a rental or relative’s house while you wait for the builders to finish.
MoveAbility Lease Details
Renew your lease twice for a total of 12 months. The renewal fee is 1% of EasyKnocks’s total purchase price every six months.
Use the ReLease program to get a higher payout for your home from EasyKnock. You can remain in your house as a renter indefinitely, but there’s no option to buy your home back. ReLease is a flexible way to get out from under a mortgage, property taxes and homeowner association fees. There are also potential savings in buying rental insurance compared to homeowners insurance.
ReLease Lease Details
The minimum lease term for ReLease is 24 months. Then you can renew each year in the future. The rent increases annually by the greater of 2.5% or the Consumer Price Index. We assume EasyKnock would increase the rent by the CPI percentage change from one year to the next and not the actual index number.
EasyKnock Sale-Leaseback vs. a Reverse Mortgage
Reverse mortgages are available from many financial institutions for homeowners who are at least 62 years old. The loan collateral comes out of the owner’s equity. The loan gets paid in full when the homeowner dies or moves to a long-term care facility. The bank then sells the home to recoup the loaned funds.
Easy Knock’s programs are available to homeowners of all ages. None of the three programs involves a loan. EasyKnock Sell & Stay can provide more money compared to a reverse mortgage. Then, if you decide to move, you receive a check for any property appreciation.
Reverse mortgage qualifications require proof of sufficient income and your mortgage balance must be low. You likely need to prove you are credit-worthy as well. EasyKnock requires none of this documentation. The company becomes your landlord, and you pay rent.
EasyKnock charges fees when you sell your home, then again if you repurchase it. Our research revealed confusion around costs associated with repurchasing homes. EasyKnock is in business to help people in a financial bind, but the company must earn a profit and is not a social program.
- Processing fee: You pay 2.5% of the price EasyKnock pays for the home.
- Traditional closing costs: You pay closing costs typical for your location when you sell the property to EasyKnock. The company pays closing fees if you buy your home back. EasyKnock also collects 1% of the home’s appraised value at closing.
- Rental payments: You maintain a formal tenant-landlord relationship with EasyKnock. Monthly rent payments typically average 0.75% of the purchase price.
- Exercising the EasyKnock Option: If you use the Sell & Stay program and buy your home back or move, you’ll exercise your EasyKnock Option. Do not go into a Sell & Stay arrangement planning to buy your home back when real estate prices go down. The Buyout Price is the amount EasyKnock paid for the property, plus around 3% for each year you rented.
How to Qualify for an EasyKnock Sale-Leaseback Program
Click on Get My Offer on the EasyKnock website and answer a few questions. A representative will get in touch to discuss your best options. You can also click on the Contact Us button to get a phone number or email address if you have some questions before applying for a sale-leaseback program.
Many EasyKnock complaints are from customers confused about how EasyKnock’s programs work. We also found negative reviews from customers evicted due to not staying current on rent payments. We recommend a lawyer evaluate and explain EasyKnock’s offer details.
The Better Business Bureau gives EasyKnock an A+ rating. Keep an open mind if you read negative reviews on the BBB site. For the most part, the reviewers seem confused about having to pay rent or EasyKnock’s fees.
ConsumersAdvocate gives EasyKnock a score of 4.6 out of 5 and highlights the easy application process. Trustpilot rates EasyKnock 3.6 out of 5 stars with a combination of high praise and disappointment.
Facebook reviews yielded 3.5 out of 5 stars. Many consumers said they were happy with the EasyKnock program they used and felt the application and approval process was simple. Others claimed EasyKnock was trying to give them an unfair deal. The complaints about paying rent are questionable, given this is how sale-leaseback agreements work.
What types of homes does EasyKnock buy?
EasyKnock buys single-family homes and townhomes. The company also buys Freddie Mac or Fannie Mae warrantable condos.
Do I need renter’s insurance to use an EasyKnock program?
Yes. Since you would be renting your home and no longer own it, you no longer would be eligible for homeowners insurance. You need renter’s insurance to pay for loss or damage in the event of an accident or other incident.
What if something unforeseen happens and I can’t pay rent to EasyKnock?
EasyKnock will likely try to work something out with you if you run into a challenging financial situation. However, the company owns the home and has the right to evict you if you aren’t paying your rent.
Will EasyKnock buy homes valued at any price?
EasyKnock has limits on the homes the company buys. Consider applying for a program if your house is valued between $100,000 and $1 million. Your mortgage must be at least 40% paid off.
Does EasyKnock do a home inspection?
Yes, EasyKnock will have the property inspected before closing. The company does buy homes in need of repair, depending on their condition. You may need to move out temporarily while the fixes are completed.
An EasyKnock sale-leaseback program can fit into your financial strategy, particularly if you can’t qualify for loans. EasyKnock offers a flexible move date while cashing out on your home. You can even repurchase your house later with the Sell & Stay program. Remember to have a lawyer evaluate EasyKnock’s sale proposal so you understand all terms before signing a contract.