ReverseMortgage-Second.com is a website of Reverse Freedom Mortgage, NMLS #1382816. Chad G. Peck, NMLS #310031. Reverse Freedom LLC, Utah Division of Real Estate license #9441193. 9089 S 1300 W #110, West Jordan, UT 84088.
This page describes HomeSafe Second, a proprietary reverse second mortgage offered by Finance of America Reverse LLC. It is not insured by FHA and is not part of the Home Equity Conversion Mortgage program. Reverse Freedom Mortgage is not affiliated with, endorsed by, or acting on behalf of HUD, FHA, Finance of America, or any government agency, and this material has not been reviewed or approved by any government agency. HomeSafe is a trademark of Finance of America Reverse LLC. These five programs are not the whole of the proprietary reverse mortgage market, and other lenders offer products with different terms.
The loan is secured by a second lien. Your existing first mortgage remains in place, and you remain responsible for making that payment under its original terms. You must also occupy the home as your primary residence, stay current on property taxes, homeowners insurance and any applicable HOA dues, and keep the home maintained. Failure to meet these obligations may cause the loan to become due and payable.
No monthly principal or interest payment is required on the second loan. Interest accrues and is added to the balance, so the amount owed increases over time and the equity in your home decreases. You may pay toward the balance at any time. Amounts repaid cannot be borrowed again.
The non-recourse feature applies to this second lien only. When the loan becomes due and the home is sold, neither you nor your heirs will owe more than the home's value on this loan. Your first mortgage is governed by its own note and is not covered by that limitation.
Eligibility requirements include a minimum age of 55, a minimum credit score of 640, and a financial assessment. Borrowers who do not pass the financial assessment are not eligible, and no life expectancy set-aside is available as an alternative. Your existing first mortgage must be a fully amortizing, closed-end loan that is current and has twenty-four months of history. Interest-only loans, negatively amortizing loans, existing reverse mortgages and private mortgages cannot remain in first position. The product is not available for purchase transactions. Non-borrowing spouses are permitted but receive none of the protections available under other reverse mortgage programs, which is worth discussing carefully before applying.
In Utah the minimum principal limit is $70,000 and the maximum loan amount is $1,000,000. The maximum property value considered is $10,000,000. Properties in declining markets may be subject to a reduction in the value used, and rural properties may be subject to a reduction in the lending percentage; neither reduction is reflected in the estimate above. Paying off debt in order to pass the financial assessment may also reduce the amount available.
Any existing second mortgage or other junior lien must be paid off at closing so that this loan takes second position. That payoff is drawn from the loan proceeds and reduces the cash available to you. The amount you may borrow is calculated against your first mortgage balance.
Counseling with an independent counselor approved for this program is required before closing. The counselor works for you, not for the lender.
Closing cost figures shown are estimates. Title insurance is calculated from the Utah title insurance rate schedule effective November 16, 2020, using the Lenders Extended rate against the estimated home value. The appraisal figure of $585 reflects a standard single-family property and will be higher for complex or high-value homes. Actual costs depend on the property, the settlement provider selected and the final loan amount.
Interest rates are set by the lender and can change without notice. The projection of future balances assumes the rate shown remains fixed for the full period and that interest compounds monthly; actual accrual is governed by your note.
Estimates produced by the calculator are illustrations only and are not an offer, a commitment to lend, or a guarantee of terms. Not all applicants will qualify. Terms and availability vary by program and by state.
