Using Home Equity in an Uncertain Economy: How HomeSafe® Second Can Help

With market volatility, inflation concerns, and higher interest rates, many homeowners are looking for smart ways to access home equity without disrupting their existing mortgage. Traditional options like cash-out refinances and HELOCs may not be ideal—especially for homeowners who want to protect cash flow or keep a low first-mortgage rate.

That’s where HomeSafe® Second, a proprietary reverse mortgage option, can provide an alternative.

What Is HomeSafe Second?

HomeSafe Second is a second-lien reverse mortgage designed for homeowners age 55 and older. It allows eligible borrowers to tap into home equity without refinancing their first mortgage and without adding a new required monthly mortgage payment.

The loan provides a one-time lump-sum payout at a fixed interest rate, while the existing first mortgage stays in place.

How HomeSafe Second Works

• You keep your current mortgage and interest rate

• No required monthly payments on the HomeSafe Second loan

• You continue to pay property taxes, homeowners insurance, and maintain the home

• The loan becomes due when the home is sold, the borrower moves out permanently, or passes away

HomeSafe Second also includes a non-recourse feature, meaning the loan balance will never exceed the value of the home at repayment.

Who May Benefit from HomeSafe Second?

This option may be a good fit for homeowners who want to:

• Access home equity without refinancing

• Preserve monthly cash flow in retirement

• Avoid variable interest rates and required payments found in HELOCs

• Use funds for debt consolidation, healthcare costs, home improvements, or retirement planning

HomeSafe Second is available in select states and eligibility requirements apply.

HomeSafe Second vs. HELOC

Unlike a HELOC, which typically has variable interest rates and required monthly payments, HomeSafe Second offers a fixed-rate lump sum with no new monthly mortgage obligation. For many retirees and pre-retirees, this can help provide greater predictability and financial stability.

Is HomeSafe Second Right for You?

In today’s uncertain economic environment, protecting cash flow while accessing home equity can be an important planning consideration. HomeSafe Second may offer flexibility for homeowners who qualify and want an alternative to traditional lending options.

Important Disclosures

This advertisement should not be construed as financial advice from Fairway. Please consult a financial and/or tax advisor.

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.