Access your equity. Keep your first mortgage. Make no monthly payment.
The HomeSafe Second is a proprietary reverse second lien offered through Finance of America. It is designed for homeowners age 55 and older who have significant home equity but also carry an existing first mortgage, one they don't want to refinance or lose. The HomeSafe Second sits behind that existing mortgage in second-lien position, providing a lump sum of cash with no monthly payment required.
Interest accrues over the life of the loan. There is no payment due each month, the balance grows quietly in the background until a maturity event occurs: you sell the home, permanently move out, or pass away. At that point, both your first mortgage and the HomeSafe Second are paid off from the home's sale proceeds. Any remaining equity belongs to you or your heirs.
It is the only second-lien product on the market that combines no required monthly payment with a non-recourse structure, two features that were previously only available in first-lien reverse mortgage products.
We look at your home's appraised value, your existing first mortgage balance, your age, and available equity. The key number is combined loan-to-value (CLTV), how the first mortgage plus the proposed HomeSafe Second stacks against your home's value. Older borrowers can typically access more, because the product is priced like a reverse mortgage.
A licensed appraiser values your property. Title is reviewed to confirm lien position and ensure the HomeSafe Second can be recorded in second position behind your existing mortgage. Your first mortgage lender does not need to consent or be notified, though this depends on your specific mortgage documents.
At closing, you receive your lump sum. The HomeSafe Second is recorded as a second lien against your property. Your existing first mortgage remains exactly as it was, same rate, same payment, same balance. Nothing changes on that loan.
No monthly payment is required for the HomeSafe Second. Interest accrues on your balance over time. You may make voluntary payments at any time to control the growing balance, but it is never required. You continue paying your first mortgage as usual.
The HomeSafe Second becomes due when you sell the home, permanently move out, or pass away. At that point, sale proceeds pay off the first mortgage first, then the HomeSafe Second. If the total loan balances exceed the home's value, the non-recourse structure protects you and your heirs from paying the difference.
No. If you already have a HECM in first-lien position, the HomeSafe Second cannot sit behind it, the HomeSafe Second requires a traditional forward mortgage in first position for lien subordination purposes. If you have a HECM and want additional equity access, you would need to explore other options or discuss a restructure.
Proceeds from the HomeSafe Second are unrestricted. Homeowners use them for home improvements, long-term care planning, debt payoff, gifting to family, supplementing retirement income, business investment, or any other purpose. There is no required use of funds.
The HomeSafe Second carries a fixed interest rate, meaning your rate is locked at closing for the life of the loan. The specific rate is determined by market conditions at time of application. Because no monthly payment is required, the rate affects how quickly the balance grows over time, a key factor in long-term planning for how much equity will remain at maturity.
Because the HomeSafe Second is a non-recourse loan, neither you nor your heirs are responsible for any shortfall between the home's sale value and the total of both loans at payoff. If your home's value declined significantly and the combined first mortgage plus HomeSafe Second balance exceeds what the home sells for, that difference is absorbed by the lender, not by you or your estate. You would not owe any additional amount beyond the home's sale proceeds.
No, you retain full ownership and can sell your home at any time. Selling the home is actually one of the primary ways the loan is repaid. At closing of the sale, both the first mortgage and the HomeSafe Second are paid off from the proceeds, and any remaining equity is yours to keep. There is no prepayment penalty on the HomeSafe Second.
No. The HomeSafe Second is available to any qualifying homeowner 55 and older, regardless of employment status. Underwriting is primarily equity-based, the lender is focused on your home's value and existing mortgage balance, not your income or employment. This makes it accessible to still-working borrowers who are equity-rich relative to their income, as well as fully retired borrowers on fixed incomes.
Typical closing timelines for the HomeSafe Second run 30–60 days from application, depending on appraisal scheduling and title work. This is comparable to a standard second mortgage closing. It is not as fast as the Figure HELOC (5 days) but provides a no-payment structure that the Figure HELOC does not.
It depends on what you're protecting. If you have a first mortgage at a rate below current market rates, doing a cash-out refinance would mean giving up that rate and refinancing the entire balance at today's higher rate. The HomeSafe Second lets you access equity without touching the first mortgage, so you keep your existing terms and only take on interest on the new second lien. For homeowners with low-rate first mortgages who need cash, this is often a significantly better economic outcome than a cash-out refinance.
First-lien position. Pays off existing mortgage at closing. More payout options (line of credit, monthly payments). FHA-insured. Age 62+.
Learn about the HECM →Interest-only payments required (not zero). Second lien. Line of credit, not lump sum. Age 62+. $50K–$400K. Longbridge Financial.
Learn about the HELOC for Seniors →Flexible payment, minimum to interest-only to more. Age 40+. DTI up to 50%. Up to $3M. Best for non-W2 income borrowers.
Learn about the EquitySelect →See all five products side-by-side across 19 dimensions including payment, age, equity, risk, and process.
See the full comparison →A no-cost evaluation takes about 20 minutes and tells you exactly how much you can access, what the growing balance looks like over time, and whether the HomeSafe Second makes sense for your situation.
Disclaimer: The HomeSafe Second is a product of Finance of America and is subject to their underwriting guidelines, which may change. Product availability, loan limits, rates, and eligibility requirements are subject to change without notice and are not guaranteed. This page is for educational purposes only and does not constitute a commitment to lend or a loan approval. Interest accrues on the loan balance over time, reducing home equity. Borrowers must maintain the property as their primary residence, pay property taxes and insurance, and keep the home in good condition. Failure to comply may result in the loan becoming due. Not available in all states. David Rider, NMLS #200787. Equal Housing Lender.