Alternative to Home Refinancing for Homeowners
Refinancing can be one way to access home equity, but it may not be the right option for every homeowner. Credit requirements, income, debt-to-income ratio, current interest rates, and other factors can affect whether refinancing is available or makes sense for your situation.
For qualified homeowners with sufficient equity, SKYDAN offers another option. Our Residential Sale-Leaseback Program allows you to sell your property, realize a portion of your home equity through the sale, and continue living in your home under a lease agreement.
SKYDAN’s program is not a loan or refinancing product. It is a real estate transaction designed for homeowners who want to consider an alternative to traditional financing.
Alternative to Home Refinancing for Homeowners
Refinancing can be one way to access home equity, but it may not be the right option for every homeowner. Credit requirements, income, debt-to-income ratio, current interest rates, and other factors can affect whether refinancing is available or makes sense for your situation.
For qualified homeowners with sufficient equity, SKYDAN offers another option. Our Residential Sale-Leaseback Program allows you to sell your property, realize a portion of your home equity through the sale, and continue living in your home under a lease agreement.
SKYDAN’s program is not a loan or refinancing product. It is a real estate transaction designed for homeowners who want to consider an alternative to traditional financing.
How SKYDAN May Help When Refinancing Is Not the Right Fit
Traditional refinancing involves qualifying for a new mortgage and replacing your existing mortgage with new loan terms. Depending on your circumstances, taking on a new mortgage may not be available or may not align with your goals.
SKYDAN provides a different way for qualified homeowners to realize a portion of their home equity through the sale of their property rather than by borrowing against it.
Through the Residential Sale-Leaseback Program, you can:
- Realize a portion of your home equity through the sale of your property rather than borrowing against it.
- Avoid taking on a new mortgage or home equity loan as part of the SKYDAN transaction.
- Continue living in your home under an agreed lease after the sale.
- Plan your next step, which may include exercising a contractual option to repurchase the property or, if you do not repurchase, having the property sold to a third party, subject to the applicable agreements and program terms.
A sale-leaseback is structurally different from refinancing because ownership of the property transfers as part of the transaction. Understanding that distinction is important when comparing your options.
Buy Before You Sell
Need access to your home’s equity before selling? Our program can help create greater flexibility for your next move.
Alternative to Home Refinancing
If traditional refinancing is not available, a residential sale-leaseback may provide another way to access your home’s equity.
Property Tax Liens
Property tax obligations can create financial pressure. Accessing your home’s equity may provide another option for qualified homeowners.
Managing Financial Challenges
Financial challenges can make traditional financing difficult. A residential sale-leaseback may provide another way for qualified homeowners to access their home equity.
How the Residential Sale-Leaseback Program Works
SKYDAN™ is here to help you tap into your home’s equity to free up any tied up funds.
Qualify
Even if you have bad credit or no income you may still qualify.
Home Visit
After initial qualification, we will schedule a time to visit your property within 1-3 days.
Appraisal
Within 3-5 days, we determine how much cash you will receive, based on your property’s value.
Payment
Within 30 days or less, you will receive the agreed-upon amount of money.
Testimonials
Happy Customers
When Traditional Home Refinancing May Be Difficult
Refinancing generally requires homeowners to qualify for a new mortgage. Lenders may consider factors such as credit history, income, debt-to-income ratio, current mortgage balance, available home equity, property value, and other underwriting requirements.
Current interest rates and closing costs can also affect whether refinancing is an attractive option. Even homeowners who qualify may decide that replacing their existing mortgage with a new loan does not fit their financial goals.
For homeowners searching for a way to use their home equity without refinancing, other options may be worth considering.
If you have sufficient equity in your home, SKYDAN’s Residential Sale-Leaseback Program may provide an alternative to refinancing. Instead of borrowing against your property, you sell the property to SKYDAN and receive proceeds from the sale.
Home Refinancing vs. Residential Sale-Leaseback
| Consideration | Home Refinancing | SKYDAN Residential Sale-Leaseback |
|---|---|---|
| Transaction Type | Mortgage loan | Property sale and leaseback |
| How Equity Is Realized | Through borrowing | Through the property sale |
| New Loan Debt | Yes | No new loan as part of the SKYDAN transaction |
| Loan Interest | Mortgage interest applies | Not applicable — SKYDAN’s program is structured as a property sale and leaseback, not a loan |
| Ownership After Closing | Homeowner retains ownership | Ownership transfers to SKYDAN |
| Qualification | Typically considers credit, income, DTI, equity and lender requirements | Based on property, available equity and SKYDAN program requirements |
| Living in the Home | As the homeowner | Under a lease agreement |
| Future Options | Continue according to mortgage terms | May include a contractual option to repurchase or, if the homeowner does not repurchase, a future third-party sale, subject to program terms |
| Offered by SKYDAN | No | Yes |
Important: SKYDAN does not provide mortgage refinancing, HELOCs, home equity loans, or other lending products. Our Residential Sale-Leaseback Program is a real estate transaction in which the property is sold and the homeowner may continue living there under a lease agreement.
Neither refinancing nor a sale-leaseback is automatically the right option for every homeowner. The best fit depends on your goals, available equity, financial circumstances, and comfort with the terms of each option.
When a Residential Sale-Leaseback May Not Be the Right Fit
A Residential Sale-Leaseback Program can provide another option for qualified homeowners, but it is important to understand the structure before moving forward.
A sale-leaseback may not be the right fit if:
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You do not want to sell your property or transfer ownership.
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You do not have sufficient equity in your home.
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You qualify for refinancing or another option that better fits your goals.
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You are not comfortable remaining in the property as a tenant under a lease agreement.
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You may not be able to meet the obligations established by the lease.
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The repurchase terms do not align with your plans, or you are not comfortable with the possibility that you may be unable to obtain financing or otherwise fund a future repurchase.
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Your property is outside SKYDAN’s eligible service area.
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Your property or title does not meet SKYDAN’s program requirements.
Before entering into any sale-leaseback transaction, homeowners should understand the sale, lease, repurchase, and other applicable agreement terms.
Alternative to Home Refinancing FAQs
Get answers to common questions about how SKYDAN’s residential sale-leaseback works and how it differs from traditional home refinancing.
What are alternatives to refinancing a home?
Homeowners may consider options such as HELOCs, home equity loans, home equity agreements, selling the property, or a residential sale-leaseback. Each option has different requirements, costs, risks, and ownership implications.
What is the difference between refinancing and a sale-leaseback?
Refinancing replaces an existing mortgage with a new mortgage loan. A residential sale-leaseback is a real estate transaction in which the homeowner sells the property and may continue living there under a lease agreement.
Can I access home equity without refinancing?
Yes. Several options may allow homeowners to realize or use home equity without refinancing. SKYDAN's Residential Sale-Leaseback Program allows qualified homeowners to realize a portion of their home equity through the sale of the property rather than through a new loan.
Does SKYDAN provide home refinancing?
No. SKYDAN is not a mortgage lender and does not provide refinancing, HELOCs, home equity loans, or other credit products. SKYDAN offers a Residential Sale-Leaseback Program structured as a real estate transaction.
Can I stay in my home after a SKYDAN sale-leaseback?
Yes. Qualified homeowners can continue living in the property under a lease agreement for the agreed-upon term, subject to SKYDAN's eligibility and program requirements.
Can I purchase my home back after a SKYDAN sale-leaseback?
Do I have to make monthly rent payments?
Under SKYDAN’s current program, rent is deferred until the end of the agreement, so no monthly rent payment is due during the lease term. The lease period is mutually agreed upon and may extend for up to two years.
Residential Sale-Leaseback Service Areas
Illinois
Ohio
Indiana
Florida
Wisconsin
Arizona
Learn More About Home Equity
Understanding the differences between refinancing, home equity loans, HELOCs, home equity agreements, and sale-leaseback programs can help you evaluate which options may fit your circumstances.
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Explore an Alternative to Traditional Home Refinancing
If traditional refinancing does not fit your circumstances, SKYDAN’s Residential Sale-Leaseback Program may offer another option for qualified homeowners with sufficient equity. Sell your home to SKYDAN, receive proceeds from the sale and continue living in the property under a lease, with a potential option to repurchase or receive an applicable share of net proceeds from a future sale, subject to program terms. See if the program may be right for you.