Is HomeSafe Second a reverse mortgage?

Yes. HomeSafe Second is a proprietary second lien reverse mortgage. It lets borrowers access the value in their homes to get cash without changing their first mortgage. Borrowers do not have to make monthly payments on the second lien.¹
As a proprietary mortgage, HomeSafe Second is not part of the FHA-insured Home Equity Conversion Mortgage (HECM) program. That said, some of the protections of the HECM program also apply to HomeSafe Second. For instance, it is non-recourse, meaning the borrower or their heirs won’t be liable for more than the home is worth when it is sold to repay the loan. Non-recourse status on HomeSafe Second does not apply to the first lien.

How does it work?



HomeSafe Second works much like other reverse mortgages, but it is a second lien placed behind the borrower’s current mortgage. Borrowers must keep paying their first mortgage. They must also live in their home as their primary residence, keep it in good shape, and pay costs like taxes, insurance, and homeowner’s association (HOA) fees.

HomeSafe Second provides borrowers access to funds in one lump sum. No monthly mortgage payments on HomeSafe Second are needed as long as borrowers follow the loan terms. ¹

What are the advantages?

Borrowers do not have to make monthly mortgage payments on HomeSafe Second.¹ They keep their current mortgage and use HomeSafe Second as a second lien to borrow extra money. Borrowers don’t need to refinance their first mortgage or add another monthly payment.

¹ The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.