HOMESAFE SECOND

How HomeSafe Second Puts You First

Unlike other home equity loan options, HomeSafe Second lets you access a portion of your home equity without adding a new payment to your monthly bills — keeping more cash in your pocket.

It is a non-recourse loan, meaning neither the borrowers nor their heirs have personal liability. HomeSafe Second allows borrowers to keep a first-lien fixed-rate, closed-ended forward mortgage, adjustable-rate mortgage, or HELOC in place while taking out a second-lien reverse mortgage for additional funds.

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Borrower Requirements

• Must be 55+ (62+ in Texas)
• Must be current on your first mortgage
• Property must be your primary residence
• Minimum FICO score of 640 (with financial assessment)
• Must maintain the property and stay current on property taxes, insurance, and any HOA fees

Program Highlights

• Fixed interest rate
• No upfront or monthly mortgage insurance premium
• Non-recourse product feature
• No minimum property value requirement
• Non-borrowing spouses and non-borrowing owners permitted
• Funds may be used for long-term care medical expenses, emergencies, home improvements, remodels, or debt consolidation

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What HomeSafe Second Can Do for You

• Ease the impact of inflation and uncertainty
  Get cash to improve your budget, battle rising costs, and protect against economic uncertainty.
• Fund home renovations
  Pay for home improvements that make your home safer, more enjoyable, and better suited to your lifestyle.
• Pay off higher-interest debts
  Tackle higher-interest consumer debt, such as credit cards, and create financial breathing room.
• Cover medical expenses
  Address ongoing medical expenses, emergencies, and long-term care needs.

HomeSafe Second FAQs

What Is HomeSafe Second?

HomeSafe Second is a second-lien mortgage placed behind a traditional forward mortgage or Home Equity Line of Credit (HELOC).

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 are still responsible for property taxes, insurance, and any existing mortgage payments.

Why Choose HomeSafe Second Over a HELOC or Home Equity Loan?

HomeSafe Second is an attractive alternative because it lets you maintain your current mortgage terms while putting your home’s equity to work in a more cash-flow-friendly way.

What Are the Benefits of HomeSafe Second?

Access Your Home Equity Without Refinancing

Keep your existing low-rate mortgage while unlocking a portion of your home equity as a lump sum — without refinancing or adding a new monthly mortgage payment.*

Flexible Repayment Options

Like a traditional mortgage, the HomeSafe Second loan must eventually be repaid with interest and fees. However, as long as loan terms are met, repayment can be deferred until you no longer live in the home or pass away. This flexibility can help improve cash flow and preserve retirement assets.

Non-Recourse Protection

When the loan becomes due and payable, the home is typically sold to satisfy the balance. If the sale price does not fully cover the loan amount, neither the borrower nor their heirs are responsible for the difference (the non-recourse feature).

If the home sells for more than the remaining loan balance, the borrower or heirs keep the difference. Heirs may also choose to keep the home by paying off or refinancing the remaining liens.

What Are the Basic Eligibility Requirements?

• 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

Is HomeSafe Second a Reverse Mortgage?

Yes. HomeSafe Second is a proprietary second-lien reverse mortgage. It allows borrowers to access home equity without changing their first mortgage and without making monthly payments on the second lien.

It is not part of the FHA-insured Home Equity Conversion Mortgage (HECM) program. However, similar protections apply, including non-recourse status — meaning borrowers or heirs will not owe more than the home’s value when sold to repay the loan. (Non-recourse protection applies only to the second lien.)

If Income Is Required to Qualify, Why Is This Better Than a Bank Second Mortgage?

Traditional second mortgages require monthly principal and interest payments, which reduce monthly cash flow. HomeSafe Second does not require a monthly principal and interest payment.

Is a Full Appraisal Required?

A full appraisal is required.