What is a HomeSafe Reverse Mortgage? Unlock Up to $4M Without Mortgage Insurance

If you’re a homeowner aged 55 or older, a HomeSafe Reverse Mortgage by Finance of America Reverse (FAR) offers a unique way to access your home equity.

With loan amounts up to $4 million and no mortgage insurance premiums, it’s an innovative alternative to traditional reverse mortgages.

Verify Your Reverse Mortgage Eligibility

This blog explores everything you need to know about HomeSafe, including its features, benefits, requirements, and product options.

What is a HomeSafe Reverse Mortgage?

A HomeSafe Reverse Mortgage is a loan for homeowners aged 55 and older that lets them access their home equity without needing to make monthly mortgage payments.

It’s different from traditional reverse mortgages because it works for higher-value homes, offers larger loan amounts, and doesn’t require mortgage insurance.

Borrowers can choose how they receive the money, such as a lump sum, a line of credit, or a second-lien loan.

This type of loan can be helpful for those who need extra funds in retirement, and it’s even available for some condos that don’t meet FHA requirements.

Verify Your Reverse Mortgage Eligibility

Benefits of HomeSafe Reverse Mortgage

• Higher Loan Limits: Access up to $4 million, exceeding FHA limits.
• No Mortgage Insurance: Save on premiums compared to traditional HECMs.
• Younger Borrower Eligibility: Available to homeowners as young as 55 in most states.
• Lower Closing Costs: Competitive closing costs make HomeSafe® a cost-effective option.
• Flexibility: Choose from lump sums, monthly payments, or a line of credit.

Verify Your Reverse Mortgage Eligibility

Types of HomeSafe Reverse Mortgage Products

The HomeSafe® suite includes three options to meet different financial needs, giving you flexibility and helping you make the most of your home equity.

HomeSafe Select

HomeSafe Select is a reverse mortgage that works like a flexible line of credit.

You can withdraw up to 75% of your approved amount, and any unused funds grow over time, increasing how much you can access later.

This option is helpful if you want funds available for future needs like healthcare, home repairs, or unexpected costs.

You only use what you need, and there’s no interest charged on the unused portion.

HomeSafe Flex

HomeSafe Flex splits your funds into two parts: an upfront lump sum and ongoing monthly payments.

You get 60% of your approved amount right away, giving you quick access to cash, while the remaining 40% is spread out over monthly payments for up to five years.

This option is great for managing both immediate and future expenses, like paying off large bills now while having steady income for ongoing needs.

HomeSafe Second

HomeSafe Second is a second-lien reverse mortgage, meaning you can borrow money from your home’s equity without changing your existing first mortgage.

It’s ideal for homeowners who already have a low-interest-rate mortgage and don’t want to refinance.

This option lets you keep your current mortgage terms while using additional funds for purposes like home improvements, debt consolidation, or large expenses.

Verify Your Reverse Mortgage Eligibility

Requirements for HomeSafe Reverse Mortgage

• Age Requirement: Borrowers must be at least 55 years old (depending on state regulations).
• Property Type: Applicable to primary residences, including higher-value homes and eligible non-FHA condos.
• Home Equity: Sufficient equity in the property is necessary to qualify.
• Credit and Income: Borrowers must meet financial assessments to ensure ongoing property-related obligations can be met.

Verify Your Reverse Mortgage Eligibility

FAQs About HomeSafe Reverse Mortgage

1. Can HomeSafe funds be used for any purpose?
Yes, the funds from a HomeSafe Reverse Mortgage can be used for virtually any purpose, including paying off existing debt, covering medical expenses, making home improvements, or even purchasing another property.

2. Is there a prepayment penalty for paying off the loan early?
No, HomeSafe products do not have prepayment penalties, allowing you to repay the loan in full or make partial payments at any time without additional fees.

3. What happens if the home value decreases over time?
HomeSafe Reverse Mortgages are non-recourse loans, meaning you or your heirs will never owe more than the value of the home when the loan is repaid, even if the home’s value decreases.

4. Can I sell my home if I have a HomeSafe Reverse Mortgage?
Yes, you can sell your home at any time. The proceeds from the sale will first be used to repay the loan, and any remaining equity will belong to you or your heirs.

5. Are there counseling requirements for HomeSafe Reverse Mortgages?
Unlike federally insured HECMs, counseling is not always required for HomeSafe products, but it may be recommended to ensure borrowers fully understand the terms.

6. What property maintenance obligations will I have as a borrower?
You must maintain the property, pay property taxes, and keep homeowner’s insurance active. Failure to meet these obligations could result in the loan becoming due and payable.

7. How is the loan amount determined?
The loan amount depends on factors such as your age, the value of your home, and current interest rates. A higher home value and older age typically result in a larger loan amount.

8. Can I switch between HomeSafe product options after signing?
No, once you finalize your loan agreement, you cannot switch to a different HomeSafe product. It’s essential to carefully evaluate your options before deciding.

9. Are HomeSafe Reverse Mortgages available for single-family rental properties?
No, HomeSafe Reverse Mortgages are designed exclusively for primary residences. Investment properties and vacation homes are not eligible.

10. How does repayment work if I move out of my home?
If you move out of your home permanently (e.g., to a long-term care facility), the loan becomes due and payable. The home can then be sold to repay the loan, or other arrangements can be made to cover the balance.

Verify Your Reverse Mortgage Eligibility

Verify Your Reverse Mortgage Eligibility

HomeSafe Reverse Mortgages are just one way to access your home’s equity.

Traditional reverse mortgages may work well for federally backed options, while HELOCs (Home Equity Lines of Credit) provide flexibility but require monthly payments.

HomeSafe stands out by offering larger loan amounts, no monthly payments, and options for higher-value homes.

Consider your needs and compare these options to decide what works best for you.

Verify Your Reverse Mortgage Eligibility