If you’re in or approaching retirement, buying a home was one of your smartest financial moves. It’s more than just a place to live—it’s been your sanctuary, your memory-maker, and likely your largest investment. But did you know your home is more than just shelter? It’s also a powerful financial asset—a built-in savings account that has grown over time. For many retirees, home equity is their largest source of wealth. Now more than ever, the real question for older homeowners isn’t if they should leverage their home equity—it’s when and how to make the most of it.
Meet HomeSafe Second—a second mortgage that lets you access a portion of your home equity—without new monthly payments or disrupting your current mortgage.*
Curious how this special home loan could help you stay in your home and enjoy a more secure retirement? Keep reading—you might be surprised at what’s possible!
WHAT IS HOMESAFE SECOND HOW IT WORKS
HomeSafe Second is second lien loan that is behind a traditional forward mortgage or HELOC loan. It’s a proprietary reverse mortgage loan—offered exclusively by Finance of America and its approved partners like Fairway—that allows borrowers to leave a first lien in place (first lien is required) but take out a second lien reverse mortgage for additional funds.
How It Works in 5 Steps:
1️. Be a homeowner with a first mortgage in good standing, looking to access home equity.
2️. Contact Fairway to determine eligibility and explore how a second mortgage can help.
3 . Complete a third-party counseling session to ensure this is a good fit, and get a home appraisal.
4️. Receive your funds in a lump sum—use the loan proceeds for just about any purpose, such as to fund home renovations.
5️. Defer repayment while you live in the home and meet loan obligations, like paying property taxes and insurance.
THREE KEY BENEFITS OF HOMESAFE ® SECOND
1. Access Your Home Equity Without Refinancing
Why refinance when you don’t have to?
With HomeSafe Second, you can keep your existing low-rate mortgage while unlocking a portion of your home equity as a lump sum of cash—all without adding a new monthly mortgage payment.
Common Uses for Loan Proceeds:
• Consolidate High-Interest Debt
Pay off costly credit cards or unsecured loans with a fixed-rate, home-secured loan, improving your financial stability. If you are thinking about debt consolidation, you might want to first consult a non-profit credit counselor.
• Manage Everyday Expenses
Offset the rising costs of gas, groceries, and inflation with extra cash flow.
• Cover Medical & Long-Term Care Needs
Fund healthcare expenses, unexpected medical bills, or ongoing care.
• Upgrade Your Home for Comfort & Safety
Make necessary repairs, renovations, or aging-inplace modifications to ensure long-term comfort.
• Enhance Your Lifestyle
Use your equity to fund travel, a new car, or bucket-list experiences—enjoy the retirement you deserve!
2. Flexible Repayment Options
HomeSafe Second isn’t free money—it’s a loan that, like a traditional mortgage, must be repaid with interest and fees. But unlike conventional loans, it offers far more flexibility, making it a cash-flowfriendly solution for retirees.
Instead of fixed monthly payments, repayment is deferred until you no longer live in the home. This means you can tap into your home equity without adding a new monthly mortgage payment, helping you preserve your retirement savings and income.
The HomeSafe Second loan won’t become due and payable until one of the following maturity events occur:
• The property is no longer the principal residence of at least one borrower. For example, HomeSafe Second becomes due if the last remaining borrower passes away or permanently moves to a nursing home.
• The borrower does not fulfill their obligations under the terms of the loan. For example, HomeSafe Second may become due if the borrower fails to pay their property taxes in a timely manner—a requirement for compliance with the loan terms
3. Built-In Non-Recourse Protection
When the HomeSafe Second loan becomes due and payable, it is typically satisfied through the sale of the home on the open market. If the price that the home sells for is not enough to pay back the loan balance, neither the borrower nor their heirs will be personally liable to pay the difference. This is known as the loan’s non-recourse feature. On the flip side, if the home sells for more than the loan balance, the borrower (or the heirs) can pocket the difference. Or, the heirs can choose to keep the home by paying off or refinancing remaining liens on home.
HOW DOES HOMESAFE ® SECOND TO A HELOC?
Minimum Credit Score 600-719 (subject to full financial assessment) 7 2️0+ (Simplified financial assessment)
Monthly Payments Required
Minimum Age
No. But you can make a payment at anytime without penalty to preserve equity. Yes. Interest only for 10 years, then fully amortizing over 2️0 years
Yes. 5️5️ for AZ, CA, CO, CT, FL, MT, NV, OR, SC, and UT. 62️ for TX. No
CA, CO, CT, FL, MT, NV, OR, SC, TX, UT
Due when the borrower moves, leave the property, fails to pay taxes or insurance or violates the terms of the loan.
30 years. Interest only for 10 years, then fully amortizing over 2️0 years.
ELIGIBILITY REQUIREMENTS
Eligible Property Types
• Single-family homes
• PUDs (Planned Unit Developments)
• Condos & townhomes
• 2-4 unit properties
Manufactured homes and modular properties do not qualify.
To qualify, you must:
• Be 55+ (62+ in TX)
• Own a home in an eligible state (AZ, CA, CO, CT, FL, MT, NV, OR, SC, TX, UT)
• Meet minimum credit and income requirements
• Have an existing first mortgage in good standing
• Attend an approved financial counseling session to help you determine if the loan is a good fit
The following existing first lien types are ineligible :
• Interest-only
• Balloon payment due at maturity
• Negatively amortizing
• Private lender
• Rehab loan during the construction/ draw period
• Texas 50(a)(6)
• Reverse mortgage including HECM
Additional restrictions:
• Deferred property taxes under a state tax deferral program are not permitted.
• No additional subordinate liens are allowed.
• 1st lien in forbearance
• Borrowers may not fail financial assessment
Financial Assessment
All borrowers are subject to a financial assessment review of credit, income, and property charge payment history depending on the median FICO score for the borrower(s). Minimum credit score: 600. The level of assessment—Simplified or Full— depends on the median FICO score of the lowestscoring borrower.
HOMESAFE SECOND PROS & CONS
HomeSafe Second Pros
• You are not obligated to make a monthly mortgage payment, so long live in the home and meet the loan requirements, which include paying the critical property charges.
• The HomeSafe Second funds generally are not considered income and therefore are not taxed as such.**
• You retain the title to your home for so long as you meet your loan obligations. As the homeowner, you can remodel or even sell the home at any time.
• The HomeSafe Second loan proceeds can be used for just about any purpose. Common uses are to supplement monthly income, establish an emergency savings fund, and pay for long-term care or home renovations.
• A HomeSafe Second generally does not affect Social Security or Medicare benefits.**
• Almost all of the upfront costs, including closing costs and ongoing fees, can be rolled into the loan.
• You don’t have to refinance and there are no mortgage insurance premiums (MIPs)
HomeSafe Second Cons
• The unpaid HomeSafe loan balance grows over time as interest gets tacked on.
• You are drawing down on your home equity. In most cases, that means your heirs would have less money coming to them from that particular asset. However, by strategically tapping home equity first, you may be able to extend the life of your other productive assets, potentially leading to you having greater net worth to leave to your family.**
• Your eligibility to qualify for needs-based programs—such as Medicaid—may be affected.**
• HomeSafe Second typically has higher upfront costs compared to traditional mortgages, home equity lines of credit (HELOCs), or home equity loans.
• While HomeSafe Second does not require mortgage insurance premiums (MIPs), its interest rates tend to be higher than those of HECM reverse mortgages, which do include MIPs.
• A HomeSafe Second can only be used if there is a qualifying first lien in place.
USE CASE HOW HOMESAFE SECOND CAN HELP YOU FIGHT INFLATION
Meet Sara, a 70-year-old widow. Like many savvy homeowners, she refinanced her mortgage when rates were low, ensuring a manageable monthly budget. But as inflation surged, everyday expenses—groceries, gas, utilities—began piling up, making it harder to stay financially comfortable in retirement.
She explored options to access extra cash but didn’t want to refinance her low-rate first mortgage. Credit cards carried high interest rates and mandatory payments, personal loans weren’t much better, and while a HELOC or Home Equity Loan (HEL) offered lower rates, their required monthly payments would drain her cash flow. A traditional cash-out refinance would mean resetting her existing mortgage with a new, higher monthly payment and a longer term.
That’s when Sara discovered HomeSafe Second. With a fixed rate and no new monthly mortgage payments, she could tap into her home equity without disrupting her existing first mortgage. The extra funds helped ease her budget and provide a financial cushion, allowing her to cover rising costs without worry.
Now, Sara not only has cash on hand for daily expenses, but she’s also better prepared for future retirement risks, like potential in-home care costs. And because HomeSafe Second is a non-recourse loan, when she eventually leaves the home, neither she nor her heirs will owe more than the home’s value. The loan can be repaid through the home’s sale, giving her peace of mind for the future.
FAIRWAY AT A GLANCE
At Fairway Independent Mortgage Corporation, customer service is a way of life. We are dedicated to finding great rates and loan options for our customers, while offering some of the fastest turn times in the industry. Our goal is to act as a trusted advisor, providing highly personalized service and helping you through every step of the loan process — from application to closing and beyond. It’s all designed to exceed expectation, provide satisfaction, and earn
trust. Since opening our doors more than 20 years ago, our team has helped thousands of Americans achieve their dream of home ownership. Ranked as one of the top 10 mortgage companies by Mortgage Executive Magazine, we have funded more than $22 billion in 2024 alone.
