The HomeSafe 2nd Reverse Mortgage, a type of home equity loan, is the ONLY second-lien reverse mortgage loan. This home equity loan is designed specifically for seniors age 55+, offering a unique way to tap into the value of their homes. Keep your regular mortgage AND get a lump sum of cash with no additional monthly mortgage payments.

Understanding This Home Equity Loan

A HomeSafe Second Reverse Mortgage is a home equity loan that allows homeowners age 55+ to convert part of their home equity into cash. Unlike a traditional mortgage, there are no monthly mortgage payments to make. It’s not available in all states just yet so please call us to see if it’s available in your state.

This home equity loan is repaid when the homeowner sells the house, moves out permanently, or passes away. Monthly mortgage payments are not required on this loan.

It’s a financial tool that can give you extra money during retirement. However, it’s important to know the details before moving forward.

The HomeSafe Second home equity loan is a non-FHA, private reverse mortgage, which means there is no mortgage insurance to pay.

This product lets homeowners access a large part of their home equity as cash. They do not have to make extra monthly mortgage payments on top of their regular mortgage, which stays in first position.

The funds obtained can be used for various purposes, such as debt consolidation, home improvements, or medical expenses. There is no limit to what you can use this cash for. This can provide a financial cushion for retirees to live more comfortably.

Qualifications for the HomeSafe Second Home Equity Loan

To qualify for a HomeSafe Second Home Equity Loan, there are certain eligibility requirements.

The homeowner must be at least 55 years old, and the home must meet a certain value threshold.

The specific requirements include:

• The homeowner must live in the home as their primary residence.
• The homeowner must have sufficient equity in the home.
• The homeowner must meet with a HomeSafe-approved counselor before obtaining the loan.

It is important to know that the loan must be paid back eventually. Usually, this happens when the homeowner sells the house, moves out, or passes away.

However, it’s important to note that reverse mortgages are non-recourse loans, meaning the lender cannot claim more than the value of the home. If the loan balance is higher than the value of the home, this extra amount cannot be taken from the client’s other assets. This is different from many traditional mortgages.

The HomeSafe Second Reverse Mortgage is a type of private home equity loan. This means it allows homeowners with higher-value homes to access more equity than traditional reverse mortgages.

However, it’s crucial to compare the HomeSafe Second to other reverse mortgage solutions to ensure it’s the best fit for your financial situation.

You might want to think about a reverse mortgage to pay off your current mortgage. For example, the regular HomeSafe Reverse Mortgage will help you eliminate your monthly mortgage payments for life.

This choice will depend on your goals and financial situation. Reverse mortgages are not a one size fits all tool.

Planning for Your Future with a Reverse Mortgage Home Equity Loan

From a financial planning perspective, a HomeSafe Second Reverse Mortgage can be a valuable tool.

It can provide much needed cash flow and liquidity during retirement, help manage debt, or fund necessary home improvements, among other things.

However, it’s essential to consider the potential impact on your overall financial plan, including tax implications and effects on government benefits. Since this is a lump sum loan, the funds will need to be stored somewhere like a savings account. Some government benefits programs require your bank account balance to be below a certain amount to qualify. Although there could be a work around for this, like placing the funds in a Medicare Trust Account. You can read more about this option on our blog HERE.

Always consult with an experienced reverse mortgage broker, and your financial advisor or estate planner when considering a reverse mortgage. It is important to lean on the guidance of the experts in your life who have your best interests in mind.