Key facts
- Finance of America expanded its HomeSafe Second reverse mortgage product to Louisiana, Missouri, Rhode Island, and Washington, D.C.
- The product is now available in 18 states and the District of Columbia.
- HomeSafe Second is a second-lien reverse mortgage for homeowners aged 55 and older.
- Borrowers can access home equity while keeping their existing first mortgage.
- Homeowners must continue to pay property taxes, homeowners insurance, and other property-related expenses.
Finance of America announced Tuesday that it has expanded its HomeSafe Second reverse mortgage product into four new markets: Louisiana, Missouri, Rhode Island, and Washington, D.C. This expansion increases the product's availability to a total of 18 states and the District of Columbia.
The move comes as a growing number of older homeowners are looking for ways to tap into their home equity without altering their existing low-interest rate first mortgages or incurring new monthly payments associated with traditional home equity loans.
The HomeSafe Second product, which was reintroduced in 2023, is designed as a second-lien reverse mortgage. It is available to individuals aged 55 and older, though specific minimum age requirements vary by state, being 60 in Washington and 62 in Texas. This product allows borrowers to access a portion of their home's equity while maintaining their current first mortgage.
Borrowers are required to continue fulfilling their loan obligations, which include timely payments for property taxes, homeowners insurance, and other property-related expenses, as well as maintaining the home's condition.
Kristen Sieffert, president of Finance of America, stated that there is continued demand for the product from both homeowners and loan officers. She highlighted that many homeowners possess significant equity but face limitations in accessing it without either adding a monthly payment or relinquishing a favorable existing mortgage rate. Sieffert added that the expansion, coupled with the company's technology-driven approach, offers more homeowners a practical method to enhance their financial standing during retirement.
Finance of America indicated that the expansion is a response to increased interest in second-lien reverse mortgages, driven by rising housing wealth in many areas and higher living expenses, insurance premiums, and property taxes faced by retirees. The company noted that homeowners in markets like Rhode Island and Washington, D.C., have benefited from property value appreciation but may have limited access to liquid assets. Retirees in states such as Missouri might be seeking greater financial flexibility without the burden of increased monthly expenses.
This announcement follows a prior expansion in March, when Finance of America extended access to the HomeSafe Second product into Indiana, Ohio, and Michigan.