How It Works
HomeSafe Second loans customers a portion of their home equity. With no additional monthly payments required until they leave their home or stop paying property charges, the balance of their loan will grow over time. When they leave the home, they or their heirs will be responsible for paying back the loan, which can be settled with the sale of the house, but will never amount to more than the home’s value.
A Second Mortgage That Puts You and Clients First
HomeSafe Second puts your business in position to help a growing demographic of customers looking to address rising costs and debt without impacting the favorable rates of their current mortgage.
Supports Your Bottom Line
A relevant product that addresses a growing demographic’s needs in a time when every sale counts
Faster To Close
Turn leads into sales quickly with a reduced financial assessment and easier loan processing
Instantly Creates New Leads
With more and more clients facing economic uncertainty, solid leads may already exist in your database
Fights Inflation For Clients
As retirement costs rise, borrowers can use home equity to improve cash flow and find financial relief
Preserves First Mortgage Rates
Clients that took advantage of historically low rates do not need to refinance their current mortgage
Improves Cash Flow With Equity
Unlike a HELOC, it avoids cutting into a budget with a new monthly payment
Who It Helps
Dave took advantage of previous low interest rates and refinanced his mortgage, but now inflation is forcing him to cover rising costs to his budget with a high-interest credit card. HomeSafe Second lets him unlock his equity to consolidate debt and gain financial flexibility in uncertain times.
Dave's Options for Financial Flexibility
HomeSafe Second gives Dave and many like him a new and powerful option when looking to improve cash flow.
|Credit Card||Personal Loan||HELOC|
|Interest Rate Type||Variable||Fixed||Variable||Fixed|
|Funds Disbursement||Revolving||Lump Sum||Line of Credit||Lump Sum|
|Missed Payments Affect Credit||Yes||Yes||Yes||No|
|Collateral||Unsecured||Unsecured||Secured by Home||Secured by Home|
For business and professional use only. Not for consumer distribution. This guide is intended for informational purposes only and should not be construed as legal, compliance or tax advice. Consult with your own compliance department or legal counsel for guidance specific to your situation.
Stand Out With HomeSafe Second
Sign up for a HomeSafe Second training session and be among the first to offer this helpful product to clients.
Go deeper with HomeSafe Second and understand how it works.
Resources to help you understand how HomeSafe Second is a good fit for your borrower.
Frequently Asked Questions
*Currently available to eligible homeowners ages 55+ in CA, CO, CT, FL, SC, and TX (where the minimum age is 62).
**National interest rate averages as of January 2023. Source: www.bankrate.com
† Rate effective as of XX/XX/XXXX. Available on fixed-rate, first lien, full draw, non-FHA, HomeSafe jumbo reverse product only. APR may vary based on specific loan terms. Availability subject to loan approval, individual financial analysis and other factors. Amount of loan proceeds available depends on age, home value, and rate. An origination fee of up to X% of your principal limit may be assessed by us upon the consummation of your loan. Settlement closing costs are also required with your loan, including items such as an appraisal report, credit report fee, title insurance premium and recordation fees, and generally range up to $XXXX. This is an estimate and amount may vary by state. Term of loan based on borrower life expectancy. Repayment due in a single payment upon maturity (when the last borrower passes away, you sell the home or no longer occupy the home as your principal residence) or you the borrower default. You may be directly responsible for the payment of real estate taxes and hazard insurance on your home, depending on whether your loan requires a property charge “set-aside” from principal limit. Additional terms and conditions apply. Advertised rates subject to change without notice
‡If you are considering debt consolidation, consult a nonprofit credit counselor.
©2023 Finance of America Reverse LLC is licensed nationwide | Equal Housing Opportunity | NMLS ID # 2285 (www.nmlsconsumeraccess.org) | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133 | AZ Mortgage Banker License #0921300 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #23647 | Kansas Licensed Mortgage Company | Massachusetts Lender/Broker License MC2285: Finance of America Reverse LLC | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department where Finance of America Reverse is known as FAReverse LLC in lieu of true name Finance of America Reverse LLC | Rhode Island Licensed Lender | Not all products and options are available in all states | Terms subject to change without notice | For licensing information go to: www.nmlsconsumeraccess.org
For Reverse Loans. When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
If you are thinking about debt consolidation, you might want to first consult a non-profit credit counselor.
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. Not all HomeSafe products are available in every state. Please contact us for a complete list of availability.