Buyback is a program that many homeowners use to draw on the equity of their house. Instead of taking out a loan against the equity they have, these homeowners will sell their home and take out all the equity, all while continuing to live in the house. This is possible due to them having the opportunity to rent the house from the company that bought it. We offer a similar program, and it could be beneficial to anyone who needs help with refinancing, financial struggles, or simply wants to pull out the cash they have invested in a house. Read more to learn what can be done when using this type of equity alternative.
How Does Buyback Program Work?
In essence, you sell your house and rent it back. You are getting all the money that you have invested in the home back in one lump sum, and you can use that money to pay down debt, pay for college, or change your lifestyle. Instead of moving, you can stay in your home. You get instant access to the cash you spent on the house, and you do not need to worry about a complex repayment plan, adjustable mortgage rates, or the looming extra debt that you have taken on.
This program is a good way for older couples to effectively “downsize” when their kids move out, or they could use the extra cash to get back on track financially. The family does not need to move, and the children will not notice. This is a program that will turn your life right side up by saving you from a complex maze of credit checks, applications, bank statements, and documentation.
Who Should Try Buyback?
This sale and leaseback program works for anyone who has equity in their home. Unfortunately, if you have no equity in your home, this is not a program you qualify for, unless you take a few extra steps. You will need to refinance first, and you may need to pay down the amount you owe on the house. Homeowners who have no equity at all may need to consider selling so that they can get out of the house before the payments become overwhelming.
If you do have equity in your home, you can take advantage of the following:
- Cash-out of the house and rent it from the Company. You will likely pay a similar amount in rent every month, but you will have all the equity paid out to you immediately.
- Stay in the house while fixing your credit, helping kids move into college or retiring. The home effectively assists you in making important life transitions less stressful.
- Leave the home when ready. The buyback program does not force you to leave your home. You can move when you want to and the bank can sell the house or rent it to someone else.
We highly recommend the program to retired seniors, empty nest parents, people who have nearly paid off the house, or anyone with financial difficulties who is serious about getting back on track.
How Does Buyback Program Differ From A Loan?
A home equity line of credit is a popular financial tool that people have used for quite some time to improve their financial situation. It is a simple program to use, and a lot of people don’t even need to switch who they’re working with as they can apply directly with the company that handles their mortgage. At the same time, you should consider how a home equity line of credit will impact your financial situation:
- You owe the bank two payments every month: one for the house and one for the loan.
- You might have an adjustable mortgage rate that could balloon at any time.
- You will need to refinance if you think you can get a better rate in the future.
- You do not always get access to all of the equity in the house.
- The option of Selling the house is more difficult because you need to pay off the mortgage and the line of credit when the house sells.
- This is a situation that causes problems for people who need to make money when they sell a house.
- While you may be offered a loan if you go to your bank for help, you can get into a much better situation that allows you to walk away from the house whenever you want. You can use the buyback program to get the money you need, and you can stay in the house until you are ready to move. You have money that your family can use to remain stable, and you even have enough to retire, if that’s the step you’re making.
Because you spent so much money on the house, you could look at this program as your retirement plan.
How Do You Apply?
You simply have one of our staff members review your application. You can show how much equity is in the house, and you can work on a custom plan for selling the house and leasing it back. All these documents will be signed when the sale closes and you can work out a favorable agreement. You may have an idea of how long you will be in the house, and you can sign a lease for a specific period. You could agree to stay in the house permanently, or you may sign yearly leases until you are ready to move.
The Skydan Equity Program is a home equity loan alternative program that can be used by anyone when they are vested in their home. Take a look at the options available to you so that you can draw on the equity in your house, change your financial future and stay in the house all at the same time. You can use this program to make money and you can avoid the complex loan applications and documentation that you are likely dreading. Anyone who needs help with refinancing in Chicago should consider this alternative and reach out to us for assistance today. We will help you review your case, show you all your options and work out a plan for accessing your home equity today.