HomeSafe Second offers greater repayment flexibility to borrowers – no monthly mortgage payments are required. This allows you to keep more cash in your pocket to use as you see fit.

While monthly payments are not required, you must continue to pay your existing first mortgage payment, property taxes, homeowners’ insurance, flood insurance (when applicable), and HOA dues, as well as maintain the home.

As long as the terms of the HomeSafe Second loan and any first lien loan are met, a reverse second mortgage does not have to be repaid until the home is no longer the primary residence of at least one borrower or the home is sold.

Usually, the last surviving borrower or their estate sells the home to repay the loan(s). Existing liens may also be repaid from other assets, proceeds from a life insurance policy, or a loan refinance subject to any first lien loan-related restrictions.

Reverse mortgages like HomeSafe Second have a non-recourse feature, which means that the total amount owed on the reverse mortgage balance can never exceed the appraised value of your home. In a reverse loan like HomeSafe Second, a lender’s recourse is limited to the mortgaged property. Neither you nor your heirs will be personally liable for the reverse loan.

If you permanently leave the home, the HomeSafe Second loan will need to be repaid. You will receive a Repayment Notice that states the mortgage is due and payable.

In addition to interest, HomeSafe Second costs can include a property appraisal fee, origination fee, closing costs, servicing fee, and a modest charge for independent counseling. While closing costs vary based on the type and size of the loan, they’re similar to those for any traditional mortgage.

You can roll most of these upfront costs into the HomeSafe Second loan, so your out-of-pocket expense is minimal. You can further reduce your loan costs by taking a lower amount of proceeds than are available to you.

Please contact us for a detailed cost breakdown and explanation of the different interest rates and pricing options available.

As a HomeSafe Second borrower, you can enjoy all the advantages a reverse mortgage can bring to your life, including making no monthly mortgage payments on your reverse mortgage.

You must continue to live in the home as your primary residence, pay your homeowner’s insurance, real estate taxes, and any applicable HOA or condominium assessments and fees, keep your first mortgage current when permitted by law, maintain your home, and comply with the obligations in the security instruments.

A HomeSafe Second loan does not change any of the requirements associated with your first lien mortgage, including the requirement that you make timely payments to your first lien servicer.

Yes. A HomeSafe Second reverse mortgage treats ownership just like any other mortgage, meaning that there is a lien on your house that has to be paid back at some time. You still own your home subject to the lien(s) and your name remains on the title.

So long as you maintain your responsibilities as a HomeSafe Second borrower, a reverse lender will not be able to foreclose on your home, even if the unpaid balance exceeds the value of your home. These responsibilities include living in the home as your primary residence, paying your property taxes, homeowner’s insurance, flood insurance (when applicable), and HOA dues, as well as maintaining your home and meeting all of the first-lien mortgage obligations (when permitted by state law).

If you do not meet these obligations, the loan servicer will attempt to contact you to resolve the situation. We highly recommend you keep an open line of communication with the servicer when any issues arise.

Home foreclosure is a lender’s last resort when the loan is due and payable and cannot otherwise be repaid.

Home equity is the value of your home, if any, that remains once a HomeSafe Second loan and first lien mortgage loan are paid. Such home equity, if any, belongs to you and your estate. This can be the case based on several factors, such as how much you choose to borrow, the interest rate of your loan, and/or if your home increases in value during the life of the loan.

It’s important to remember that the non-recourse feature of a reverse mortgage loan, such as HomeSafe Second, assures that neither you nor your estate will be personally liable for the HomeSafe Second loan. The lender’s recourse in a HomeSafe second loan is limited to the mortgaged property. In the event the debt exceeds the value of the home, you/your heirs simply walk away. Note that this is a worst-case scenario and relates to the second lien mortgage only. Your first lien mortgage may be a recourse loan.