Introducing a new reverse mortgage unlike any other! The newHomeSafe® Second proprietary reverse mortgage from Finance of America Reverse is aprivate loan for senior homeownersaged 55+. This reverse mortgage occupies 2ndlien position behind a regular mortgage. We only broker the HomeSafe® Second proprietary reverse mortgage in California at this time. This loan is a fixed-interest rate product only and funds are available in one lump sum. The HomeSafe® Second proprietary reverse mortgage would be a good option for people who:
-Are aged 55+
-Have a low mortgage balance/equity in their home
-Want to keep making monthly mortgage payments on their first mortgage
-Want extra funds without having to make any additional monthly mortgage payments
-Have considered taking out a credit card or getting an auto loan but the additional monthly payments would stretch their current budget
Access Your Home Equity As Cash
Most homeowners desire to pay off their mortgage before retirement but many aren’t able to pay it off until after they retire. This requires them to carry their mortgage balance into retirement and use the funds they had saved for retirement to pay their monthly mortgage payments. Having a paid-off mortgage is a goal of many and if they aren’t struggling with the monthly mortgage payments, they may not desire to get rid of them. There are many reasons why someone could want to keep their current mortgage including:
-They have a low balance with a low-interest rate
-They do not have issues making their monthly mortgage payments
-They desire to carry no first mortgage someday soon and have a plan to attain this goal
The new HomeSafe® Second reverse mortgage allows people to continue chipping away at their current mortgage while still accessing some equity as a lump sum with a fixed rate. The funds from a reverse mortgage, even this new HomeSafe® Second can be used for anything you want or need! Themaximum loan amount is $4 million, minus the first lien balance. Consider what you could do with extra cash that didn’t require any additional monthly mortgage payments:
- -Remodel or upgrade your home to meet your changing needs
- -Pay off other debts
- -Purchase a new car or new appliances
- -Get in-home care
- -Afford the medical care/appliances/furniture/prosthetics you need
- -Take time off work
- -Buy an RV
- -Put cash away for an emergency fund
- -Help out family
- -Take a nice vacation
- -Buy an investment property
- -Build a shop
- -Install an ADU to rent out
- -Start a business
The list could go on and on because reverse mortgages make it possible for seniors to make their dreams become reality. The new HomeSafe® Second is a reverse mortgage unlike any other in that it doesn’t require your first mortgage to be paid off for you to access this benefit, but like the FHA-insured HECM, it is a non-recourse loan and neither the borrower(s) nor their heirs shall have personal liability. All other reverse mortgages allow for purchase transactions but the proprietary HomeSafe® Second is only available as a refinance on a primary residence. Even though this loan is a brand-new option as of February 2023, the benefits are clear. Compared to a traditional HELOC, this loan option is optimal for seniors because it has no fixed term, no payment requirement, and no rate adjustments.
