Note: The free calculator on this web page is specific to HomeSafe Second mortgages.
HomeSafe Second FAQs
What is HomeSafe Second?
HomeSafe Second is designed to sit behind an existing forward mortgage or Home Equity Line of Credit (HELOC) as a second-lien mortgage.
Why consider HomeSafe Second?
HomeSafe Second allows you to access a portion of your home equity without refinancing your current mortgage or adding a new monthly mortgage payment. You’ll continue to be responsible for property taxes, insurance, and any existing loan obligations.
Why HomeSafe Second Over HELOCs or Home Equity Loans?
HomeSafe Second provides flexibility to maintain your current mortgage terms while putting your home’s equity to work in a cash flow friendly way.
What are the benefits of HomeSafe Second?
Access Home Equity Without Refinancing
With HomeSafe Second, you can keep your existing low-rate mortgage while tapping into a portion of your home equity without refinancing or adding a new monthly mortgage payment. You’ll continue to be responsible for property taxes, insurance, and any existing loan obligations.
Flexible Repayment Options
Like a traditional mortgage, HomeSafe Second loan must be repaid with interest and fees. However, repayment can be deferred as long as you meet the loan terms, such as living in the home and maintaining property-related obligations. This flexibility can help support cash flow and preserve other assets.
Non-Recourse Protection
When the loan becomes due, the home is typically sold to satisfy the balance. If the sale proceeds are less than the loan amount, neither you nor your heirs are responsible for the difference.
If the home sells for more than the remaining balance, the excess proceeds go to you or your heirs. Additionally, heirs may also choose to keep the home by paying off or refinancing the outstanding balance.
What Are the Basic Eligibility Requirements for HomeSafe Second?
- Be at least 55 years old (60+ in WA, 62+ in TX)
- Own a home in an eligible state (AZ, CA, CO, CT, FL, IL, MT, NV, OR, SC, TX, UT, WA)
- Meet minimum credit and income requirements
- Have an existing first mortgage in good standing
- Attend an approved financial counseling session
FIND OUT MORE ABOUT OUR LOANS AND HOW MUCH YOU MAY QUALIFY FOR
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THE CALCULATION ABOVE IS INTENDED AS AN ESTIMATE ONLY, BASED ON THE HOME VALUE, MORTAGE BALANCE AND BORROWER AGE YOU HAVE PROVIDED. YOUR ACTUAL LOAN AMOUNT MAY DIFFER BASED ON MARKET CONDITIONS AND APPLICABLE FEES IN YOUR AREA. This is not a commitment to lend nor a loan approval. All borrowers must meet loan obligations, including paying all property charges (property taxes, fees, and homeowners insurance) as well as living in the property as the primary residence. The borrower must also properly maintain the home. If the borrower does not meet these loan obligations the loan may become due and payable. The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program.