Updated
Updated · HousingWire · Jul 7
Finance of America Expands HomeSafe Second to 19 States as Retirees Tap Home Equity
Updated
Updated · HousingWire · Jul 7

Finance of America Expands HomeSafe Second to 19 States as Retirees Tap Home Equity

1 articles · Updated · HousingWire · Jul 7

Summary

  • Four new markets—Louisiana, Missouri, Rhode Island and Washington, D.C.—were added Tuesday, extending Finance of America’s HomeSafe Second reverse mortgage to 19 states plus the district.
  • The second-lien product lets homeowners 55 and older tap home equity while keeping an existing first mortgage, a draw for borrowers trying to avoid refinancing low-rate loans or taking on monthly payments.
  • Borrowers still must cover property taxes, homeowners insurance and other home-related costs; minimum eligibility rises to 60 in Washington and 62 in Texas.
  • Finance of America said demand is coming from both homeowners and loan officers as retirees face higher living costs, insurance premiums and property taxes despite rising housing wealth.
  • The move follows a March expansion into Indiana, Ohio and Michigan, underscoring growing interest in second-lien reverse mortgages as a retirement liquidity tool.

Insights

Are reverse mortgages a safe retirement solution or a high-stakes gamble with your home?
Is tapping trillions in home equity the new, unavoidable solution for America's retirement crisis?