Note: The free calculator on this web page is specific to HomeSafe Second mortgages.
HomeSafe Second FAQs
What Is HomeSafe Second?
HomeSafe Second is a second-lien mortgage behind a traditional forward mortgage or Home Equity Line of Credit (HELOC) loan.
How Does HomeSafe Second Work?
HomeSafe Second allows you to unlock home equity without refinancing your first lien or adding a new monthly mortgage payment. You’ll still need to cover property taxes, insurance, and existing mortgage payments.
Why HomeSafe Second Over HELOCs or Home Equity Loans?
HomeSafe Second is an attractive alternative to HELOC or Home Equity Loan because it gives you the 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 Your Home Equity Without Refinancing
With HomeSafe Second, you can keep your existing low-rate mortgage while unlocking a portion of your home equity as a lump sum of cash without refinancing or adding a new monthly mortgage payment.*
Flexible Repayment Options
Like a traditional mortgage, HomeSafe Second loan must be repaid with interest and fees. However, as long as you meet the loan terms, repayment can be deferred until you no longer live in the home or pass away. This means borrowers have far more repayment flexibility to improve cash flow and maintain retirement assets.
Non-Recourse Protection
Once the loan is due and payable, the sale of the home on the open market typically satisfies the loan. If the sale price isn’t enough to cover the balance, neither borrowers nor their heirs are liable to pay the difference (the “non-recourse feature”).
But, if the home sells for more than the remaining loan balance, the borrower or their heirs pocket the difference! Alternatively, heirs can keep the home by paying off or refinancing the remaining liens.
What Are the Basic Eligibility Requirements for HomeSafe Second?
- Be 55+ (60+ in WA, 62+ in TX)
- Own a home in an eligible state (AZ, CA, CO, CT, FL, MT, NV, OR, SC, TX, UT, WA, IL)
- Meet minimum credit and income requirements
- Have an existing first mortgage in good standing
- Attend an approved financial counseling session to help you determine if the loan is a good fit
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*Source: https://www.cbsnews.com/news/best-reverse-mortgage-companies-2023/
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.