Finance of America expands second-lien product's reach

Finance of America is expanding its second-lien reverse mortgage product into four new markets to meet increased demand, it announced in a press release Tuesday.

HomeSafe Second added Louisiana, Rhode Island, Missouri and Washington, D.C. to the states it was already available in: Arizona, California, Colorado, Connecticut, Florida, Illinois, Indiana, Michigan, Montana, Nevada, Ohio, Oregon, South Carolina, Texas, Utah and Washington.

Nicholas Barrett

"Many homeowners have significant equity but limited ways to access it without adding a monthly payment or giving up a low mortgage rate," President Kristen Sieffert said in the release. "Expanding HomeSafe Second to additional states, along with our technology-driven approach, gives more homeowners a practical way to strengthen their financial position in retirement."

Markets like Rhode Island and Washington, D.C. have seen rapid home-price growth, which has increased household wealth but not liquidity. Meanwhile, fixed or modest retirement incomes heighten the need for financial flexibility without added payments in states like Missouri, according to the release.

HomeSafe Second, introduced in 2023, aims to serve homeowners 55 and older who want to unlock home equity without taking on new monthly mortgage payments or giving up an existing low‑rate first-lien loan, the release said. Such solutions have become increasingly attractive over the past few years, with the 30-year fixed-rate mortgage rising from 2.65% to 6.43% since 2021. The increase includes a 45 basis-point jump since February, according to Freddie Mac.

Second-lien equity withdrawals generally have been trending up in recent years. Notably, 2025 started with a quarterly increase of 22% from 12 months earlier, bringing the number for that period the highest volume in 17 years, according to ICE Mortgage Technology.

Eligible borrowers must meet all loan obligations, including those under the first-lien mortgage, live in the property as the principal residence and pay property charges, such as taxes, fees and hazard insurance. If the homeowner does not meet the obligations, then the loan will need to be repaid, the release said.

Minimum age limits vary by state for the second-lien product. It requires a minimum loan amount of $50,000 and accepts amounts up to $1 million as well.

The lender also recently launched HomeSafe Second Line of Credit, a subordinate-lien reverse mortgage that allows homeowners 55 and older to take out funds as needed after an initial draw of 25% at the time of origination. 

The product was initially available in California, where nearly 75% of residents own their home, and mid-tier residential properties are valued at $775,000, Zillow found. California has one of the highest median sale price to personal income ratios of any state as well, according to BestBrokers.