The company also announces a reduction in rate
Finance of America Reverse LLC has announced enhancements to its HomeSafe Second loan in a bid to boost homeowners aged 55 and above. The product allows homeowners to tap into their home equity without the burden of monthly payments, offering an alternative to traditional retirement financing.
According to a news release, the company has reduced the interest rate on HomeSafe Second loans from 9.99% to 9.49%, making it a more attractive option for those seeking to leverage their home’s value. Furthermore, the program is now available in four new states: Arizona, Nevada, Oregon, and Utah.
“HomeSafe Second transforms how homeowners 55 and older unlock the equity in their homes without the cash flow strain of additional monthly payments,” said Kristen Sieffert, president of Finance of America. “This innovative solution empowers financially secure homeowners to tap into their home equity for meaningful pursuits.”
Unlike traditional home equity loans or HELOCs, HomeSafe Second is a second-lien loan that requires no monthly payments. This approach aims to provide homeowners with greater financial flexibility, allowing them to use the funds for various purposes such as home renovations, travel, healthcare expenses, or supporting family members.
“Our wholesale partners are eager to find opportunities for growth after a few challenging years. We’re speaking with a number of large lenders who are attracted to HomeSafe Second because it’s a way to reengage their servicing book and create a revenue stream from a dormant customer segment,” said Jonathan Scarpati, SVP of wholesale lending at Finance of America. “Similarly, originators on the ground love having this tool available for homeowners who don’t want to lose the low rate they have on their first mortgage.”
HomeSafe Second is now available in Arizona, California, Colorado, Connecticut, Florida, Nevada, Oregon, South Carolina, Texas, and Utah. Finance of America also reiterated plans to expand this product to additional states over the next year.
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