Millions of homeowners refinanced into mortgages with rates of 2.5%–3.5% between 2020 and 2022. Today, those mortgages are worth protecting. The HomeSafe Second lets you access your home equity without touching that first mortgage, and without making monthly payments on the second. (It's a proprietary reverse mortgage, not an FHA-insured HECM; you keep ownership and remain responsible for property taxes, homeowner's insurance, and upkeep, and the balance grows over time as interest accrues.)
The Problem It Solves
If you refinanced your home at a historically low rate a few years ago, you're in a genuine bind when it comes to accessing equity:
- A cash-out refinance would replace your 3% rate with today's much higher rate on the full balance, a costly trade
- A traditional HELOC requires monthly payments and can be frozen by the bank
- A standard HECM reverse mortgage would pay off your existing first mortgage, also replacing your low rate
The HomeSafe Second solves this: It sits behind your existing first mortgage as a second lien, so your original low-rate mortgage stays completely untouched. You access equity through the second without monthly payment obligations.
How It Works
The HomeSafe Second is a proprietary reverse mortgage second lien offered by Finance of America Reverse (FAR). It's not a government-insured HECM (for how HECMs work by contrast, see the CFPB), it's a private-market product specifically designed for borrowers who have a first mortgage they want to keep.
Like all reverse mortgages, interest accrues on the outstanding balance rather than being paid monthly. The loan comes due when you sell the home, permanently move out, or pass away.
Key product features:
- Minimum age: 55 (lower than the standard HECM minimum of 62)
- Available as a lump sum or line of credit
- No monthly payment required on the second lien
- Your existing first mortgage payment stays in place, but that payment doesn't change
- Fixed and adjustable rate options available
- Available in California, Arizona, and select other states
Example: Mesa Homeowner with a 3% First Mortgage
Home value: $650,000
Existing first mortgage: $175,000 at 3.1% (monthly payment: ~$990)
Home equity: ~$475,000
HomeSafe Second available: Approximately $150,000–$200,000 (varies by age and rates)
Monthly payment on the second: $0
Change to first mortgage: None, it stays exactly as is
Who Is It For?
The HomeSafe Second is particularly well-suited for:
- Homeowners 55–62 who don't yet qualify for a standard HECM but need equity access now
- Homeowners with low-rate first mortgages they don't want to disturb
- Retirees who need supplemental income but don't want or can't qualify for a HELOC
- Homeowners facing a large expense (home renovation, healthcare, helping a family member) who need a lump sum without monthly payments
How It Compares to Other Options
vs. Cash-Out Refinance: A cash-out refi replaces your entire mortgage at today's higher rates. The HomeSafe Second leaves your first mortgage alone entirely.
vs. HELOC: A HELOC requires monthly payments (interest-only during the draw period, then fully amortizing). The HomeSafe Second has no monthly payment. A HELOC can be frozen by your bank; the HomeSafe Second cannot.
vs. Standard HECM: A HECM pays off any existing first mortgage, great if you don't have one, but not ideal if you want to keep a low-rate first in place. The HomeSafe Second is designed specifically to sit behind an existing first mortgage.
State Availability
The HomeSafe Second is currently available in California, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington. For Arizona homeowners, which is our primary market, this product is available.
The Trade-Offs to Understand
The HomeSafe Second has real advantages, but it also has trade-offs worth understanding:
- It's a proprietary product, it doesn't carry FHA insurance or the non-recourse protections of a HECM (though it does have its own non-recourse provisions in the contract)
- You're still making a first mortgage payment each month, the second eliminates that payment only on the second lien, not the first
- Total combined loan-to-value limits apply, the first and second together can't exceed a certain percentage of the home's value
- Proprietary products can change, terms, availability, and lenders in this space evolve
We offer the HomeSafe Second alongside a full range of senior lending products. The right tool depends on your specific situation, and sometimes a combination of products is the best answer.
Where to learn more (independent sources): CFPB, What is a reverse mortgage? · NRMLA consumer site. The HomeSafe Second is a proprietary product of Finance of America Reverse; terms are set by the lender and subject to change.
