Unlock Your Equity Without Refinancing

Instant HomeSafe Second eligibility and real-time numbers.

Michael G. Branson, CEO of All Reverse Mortgage, Inc., and moderator of ARLO™, has 45 years of experience in mortgage banking, with the past 20 years devoted exclusively to reverse mortgages. A Forbes Real Estate Council member, he developed the industry's first fixed-rate jumbo reverse mortgage and has been featured in Forbes, Kiplinger, the LA Times, and Yahoo Finance. (License: NMLS# 14040)

Cliff Auerswald, President of All Reverse Mortgage, Inc., and co-creator of ARLO™ — the industry's first real-time reverse mortgage pricing engine — has 27 years of experience in mortgage banking, with 20+ years focused exclusively on reverse mortgages. A recognized expert in reverse mortgage technology and consumer education, he has been featured in Kiplinger, Yahoo Finance, Realtor.com, and HousingWire. (License: NMLS# 14041)

HomeSafe Second Reverse Mortgage: Access Equity Without Refinancing

By Michael G. Branson

CEO · 45 yrs in mortgage banking

Edited By Cliff Auerswald

President · All Reverse Mortgage Inc.

Updated Feb 6, 2025 ⏱ 4 min read ✓ Fact Checked HUD-Lender #26031-0007 12 comments

Table of Contents

• What Is HomeSafe Second?

• Who Qualifies for HomeSafe Second Reverse Mortgage?

• Common Uses for HomeSafe Second

• How HomeSafe Second Compares to Other Loan Options

• HomeSafe Second Loan Examples

• Who Qualifies for HomeSafe Second?

• HomeSafe Credit & Income Requirements

• HomeSafe Financial Assessment

• First Mortgage Requirements

• How Much Could You Save?

• Where Is HomeSafe Second Available?

• How to Get Started

• HomeSafe Second Reverse Mortgage FAQs

Unlock Your Home’s Equity Without Refinancing

At All Reverse Mortgage, Inc. (ARLO™), we know that many homeowners want to access their home equity without losing their low-rate first mortgage.

That’s why we offer HomeSafe Second—a reverse mortgage second lien that lets you tap into your home’s equity without monthly mortgage payments while keeping your first mortgage intact.

What Is HomeSafe Second?

HomeSafe Second is a proprietary reverse mortgage designed specifically for homeowners who:

✅ Have a low-interest first mortgage they want to keep
✅ Need extra cash for home repairs, debt, or other expenses
✅ Want a fixed-rate reverse mortgage with no monthly payments

Unlike a traditional HECM (Home Equity Conversion Mortgage), this product works as a second lien behind your existing mortgage.

Important: HomeSafe Second is not a HELOC or a traditional home loan. Instead, it’s a reverse mortgage that allows you to access equity while deferring payments.

Who Qualifies for HomeSafe Second Reverse Mortgage?

If you answer YES to any of the following, HomeSafe Second might be a great fit for you:

✔ Do you have a first mortgage but need additional funds?
✔ Do you want to avoid monthly mortgage payments?
✔ Are you 55+ (or 62+ in Texas) and own a qualifying property?
✔ Do you need funds for home improvements, medical costs, or financial security?

Common Uses for HomeSafe Second

🏠 Pay Off High-Interest Debt – Lower your financial burden
🔧 Fund Home Improvements – Make your home safer and more comfortable
👪 Help Family Members – Support loved ones with tuition or home-buying
🚗 Make a Large Purchase – Buy a vehicle, RV, or invest in retirement

How HomeSafe Second Compares to Other Loan Options

Many homeowners wonder, “Why not just take a HELOC or personal loan?”

Here’s how HomeSafe Second stacks up:

Feature	HELOC	Personal Loan	HomeSafe Second
Type of Loan	Open-Ended	Close-Ended	Close-Ended
Interest Rate	Variable	Fixed	Fixed
Monthly Payments?	Yes	Yes	No
Secured by Home?	Yes	No	Yes
Closing Costs?	Yes	Yes	Yes (Lower than HECM)

✔ Unlike HELOCs or personal loans, HomeSafe Second does not require monthly payments.
✔ Interest accrues over time, but repayment is deferred until you sell or move.

HomeSafe Second Loan Examples

Example 1: Homeowner with a $500,000 Home

🔹 Age: 73
🔹 Existing mortgage: $100,000
🔹 Available HomeSafe Second loan: $125,000

Example 2: Homeowner with a $2 Million Home

🔹 Age: 56
🔹 Existing mortgage: $200,000
🔹 Available HomeSafe Second loan: $500,000

How Can You Use These Funds?
Whether home upgrades, financial security, or helping your loved ones, you decide how to use your equity.

Who Qualifies for HomeSafe Second?

✔ Age 55+ (62+ in Texas)
✔ Single-family homes, townhomes, FHA-approved condos, or 2-4 unit properties
✔ Must complete a required reverse mortgage counseling session
✔ No existing reverse mortgage on the property

Credit & Income Requirements

HomeSafe Credit & Income Requirements

Credit Score	Assessment Type	Requirements
720+	Simplified Assessment	No income verification required
600 – 719	Full Assessment	Must meet financial assessment requirements
Below 600	Ineligible	Does not qualify for HomeSafe Second

HomeSafe Financial Assessment

Requirement	Simplified Financial Assessment	Full Financial Assessment
Credit Score	>=720	>=600
Mortgage History	24 months: 0x30 in the most recent 24-month period* (no forbearance/deferment last 24 months)	0x30 in last 12 months and no more than 2x30 day lates for months 13-24 (no forbearance/deferment last 24 months)
Tax Payment History	24-month history required. Taxes are not considered late unless paid more than 30 days after the delinquency date; allows for one payment in the previous 24 months to be paid more than 30 days after the delinquency date.	24-month history required. Taxes are not considered late unless paid more than 30 days after the delinquency date; allows for one payment in the previous 24 months to be paid more than 30 days after the delinquency date.
HOA/Condo Due Payment History	HOA/Condo fees must be current at closing. No HOA/Condo liens or notice of default (NOD) filed by the HOA/Condo association.	HOA/Condo fees must be current at closing. No HOA/Condo liens or notice of default (NOD) filed by the HOA/Condo association.
Hazard/Flood Payment History	12 months continuous coverage with no lapse in continuous coverage required.	12 months continuous coverage with no lapse in continuous coverage required.
Income Type	Income documentation is not required, borrow will sign certification that they have sufficient financial resources to meet their monthly obligations.	All income types are allowed
Residual Income	Not applicable	Residual income must be met
1st Lien Term Remaining	Minimum of 5 years	Not applicable

All borrowers are subject to a financial assessment review of credit, income, and property charge payment history depending on the median FICO score for the borrower(s).

First Mortgage Requirements

Your first mortgage must meet these requirements:

✔ Fully amortized fixed-rate or adjustable-rate mortgage (ARM)
✔ HELOCs allowed only if in the repayment phase
✔ Mortgage must be current (not delinquent or in forbearance)

🚫 Loans NOT Allowed:

Interest-only loans
Other reverse mortgages (HECM, private RM)
Private mortgages, rehab loans, or deferred tax programs

How Much Could You Save?

Let’s look at an example of how HomeSafe Second can help reduce monthly payments:

Expense	Current Monthly Payment	With HomeSafe Second
First Mortgage	$1,000	$1,000
HELOC	$250	$0
Credit Cards	$900	$0
Total Monthly Cost	$2,150	$1,000

💰 Savings: $1,150 monthly – with no required mortgage payments on the second lien.

Where Is HomeSafe Second Available?

📍 Approved States: Arizona, California, Colorado, Florida, Oregon, South Carolina, Texas.

Texas borrowers must be 62+ to qualify due to state regulations.

How to Get Started

Getting a HomeSafe Second loan is simple:

✅ Step 1: Contact us for a free, no-obligation consultation
✅ Step 2: Complete your required counseling session
✅ Step 3: Submit your application and supporting documents
✅ Step 4: Receive approval and close your loan
✅ Step 5: Access your funds with no monthly payment obligations

HomeSafe Second Reverse Mortgage FAQs

Can the borrower not have a 1st lien?

No, if there is no first lien, the borrower should apply for HomeSafe Standard instead.

Are there any seasoning requirements for 1st lien?

The first mortgage cannot be taken out within the last 12 months.

Are LESAs allowed?

No, LESA (Life Expectancy Set Aside) accounts are not allowed on HomeSafe Second. If the borrower does not pass financial assessment, they are not eligible.

How is the HomeSafe Second different from a HELOC?

Unlike a HELOC:
✔ No fixed term
✔ No required monthly payments
✔ No interest rate adjustments
✔ Lower loan-to-value (LTV) ratio

If the loan is being processed as a 1st lien reverse mortgage, can it switch to HomeSafe Second?

Yes, if it’s an open/active application, a HECM or HomeSafe Standard can be converted to HomeSafe Second.

Ready to Tap Your Equity Without Payments? Get a free, custom quote from America’s #1 Rated Reverse Lender, All Reverse Mortgage (A+ BBB, 5-Stars)! Call (800) 565-1722 or click here for your free quote —simple, trusted, 100% secure!

America's #1 Rated Reverse Lender Celebrating 20 Years of Excellence.

Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 20 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

Over 2000 of your questions answered by ARLO™
Ask your question now!

12 Comments on this Article

Terry R.
April 8th, 2025

The HomeSafe second is advertised as no income verification loan for borrowers with a FICO over 720 and no late pays. I assume this means that the borrower DOES NOT need to sign IRS Form 4506 or Form SSA-89?
Reply to Terry
- Michael Branson
  April 9th, 2025
  
  Hi Terry, great question!
  Yes, there is still an IRS Form 4506 and SSA-89 included in the application package and signed at the time of application. However, if your FICO score is 720 or higher and you meet the program's credit and payment history guidelines (including no late pays), we do not process the 4506 form. So while it's part of the paperwork, it's not used for income verification in qualifying you for the HomeSafe Second under those conditions.
  Hope that clears it up! Let us know if you have any other questions.
  Reply to Michael
Tracy H.
February 12th, 2025

I am looking for a reverse 2nd, but I have an interest only option on my 1st does this disqualify me?
Reply to Tracy
- Michael Branson
  February 13th, 2025
  
  To qualify for HomeSafe Second, your first mortgage must be fully amortized (fixed or adjustable-rate), current, and not interest-only.
  Since your first mortgage is interest-only, a reverse mortgage is not an option in second-lien position. However, you could consider refinancing your first mortgage into a fully amortized loan or replacing it entirely with a traditional reverse mortgage (HECM or proprietary) in first-lien position, eliminating your monthly mortgage payment altogether.
  If you'd like to explore your options, feel free to check out our reverse mortgage calculator for real-time rates.
  Reply to Michael
Kim C.
February 6th, 2025

What are the financial risks of using a Homesafe Second versus a HECM OR HELOC.? I have a fixed rate (.2.9%) first lien and do not want to lose that rate.
Reply to Kim
- Michael Branson
  February 11th, 2025
  
  Hello Kim,
  I wouldn't necessarily use the word "risk” when comparing a HomeSafe Second, HECM, and HELOC - it's more about which option aligns best with your financial goals. However, the loan that carries the most uncertainty is the HELOC, and I'll explain why.
  Since you want to keep your fixed 2.9% first mortgage, a HomeSafe Second could be a strong option because it allows you to borrow additional funds without affecting your existing low-rate loan. Let's break down the differences.
  1. HECM (Home Equity Conversion Mortgage - FHA-Insured Reverse Mortgage):
  No monthly payments required.
  Pays off your existing mortgage, so you no longer have a required monthly mortgage payment.
  You can make voluntary payments at any time, but it's not required.
  Any unused funds remain available in a growing line of credit and do not accrue interest until borrowed.
  You can stay in the home for life, provided you pay property taxes, insurance, and maintain the home.
  If your goal is to eliminate monthly payments and free up cash flow, the HECM would allow you to do so.
  2. HomeSafe Second (Proprietary Reverse Mortgage - Not FHA-Insured):
  Keeps your existing first mortgage in place (great since you have a 2.9% fixed rate).
  Provides a lump sum with no monthly payments required.
  Works as a second mortgage, meaning you still have your original mortgage payment but gain additional funds without increasing that obligation.
  Does not require future income or credit verification after closing.
  If your goal is to access additional funds without disturbing your first mortgage, the HomeSafe Second accomplishes that.
  3. HELOC (Home Equity Line of Credit - Traditional Bank Loan):
  Requires monthly payments on any amount borrowed.
  Starts with a low introductory rate but can increase over time.
  Typically has a 10-year draw period (interest-only payments), followed by a 20-year repayment period, where payments increase significantly.
  Adjustable interest rate, meaning your payments could rise unexpectedly.
  Banks can freeze or cancel the line at any time based on economic conditions, property values, or borrower qualifications.
  HELOCs can seem appealing at first due to their flexibility and low initial rates, but they introduce risks like higher future payments, interest rate increases, and the potential for banks to revoke access.
  Final Thoughts:
  If stability and long-term security are your priorities, a reverse mortgage (HomeSafe Second or HECM) eliminates the risk of rate hikes, payment increases, or sudden credit line freezes. If you are comfortable with future payment uncertainty and potential lender restrictions, a HELOC may still be an option.
  The real risk lies in choosing a loan where the lender has control over future terms - which is why HELOCs can be the most unpredictable. The best option depends on your goals and comfort level with future financial changes.
  Reply to Michael
Sally B.
January 20th, 2025

Can I get a second reverse mortgage if my house has doubled in value since the original reverse mortgage was taken?
Reply to Sally
- Michael Branson
  January 20th, 2025
  
  Hi Sally,
  Yes, you can refinance your current loan as long as you qualify under the current program parameters. Many borrowers have benefited from increasing property values and have taken advantage of the ability to refinance their loans over the years. In fact, if this is the first time you are refinancing, your fees will be lower as you will receive a credit for the initial mortgage insurance premium you paid on your existing loan.
  Try going to our refinance calculator so we can help you determine what you may need ample to get by refinancing your loan. A refinance is a bit different than a first time reverse mortgage insurance premium that we need a little more information about your current loan to give you accurate information, but it's still quick and painless with no obligation.
  Reply to Michael
Steven Boyers
May 8th, 2019

Can a Homesafe loan be used to replace an existing HECM and provide more cash to the borrower? For example, I have a $1.9m loan on a $6m home. Could I take our a bigger loan, payoff the existing HECM and still have cash available.
Reply to Steven
- Michael Branson
  May 8th, 2019
  
  Hi Steven,
  
  Absolutely. For many years, proprietary or jumbo programs were not available, and the HUD HECM was the only reverse mortgage available. Borrowers of high value homes were given just one choice and that was it. Fortunately, this is no longer the case! We have been helping borrowers who were hampered by limited funds available on the HECM loan in relationship to their total property value and their needs for many months now and would be happy to show you what the proprietary or jumbo loans can do for you.
  Reply to Michael
Charles T Lambert
March 27th, 2019

I spent a good deal of time in a comment asking about the possibility and feasibility of obtaining a second mortgage on a home with a reverse mortgage. Unfortunately my wife had a question about the background of your organization, and I had to leave the page to find the info for her. Now I cannot find my comment and don't know if you received it or not. Can you help me? I realize I can rewrite the comment/questions over, but that's unpleasant as I spent a great deal of time on accuracy, details, and honesty in my writing. Yes, I can do it again, but if you can locate my original comment, I should appreciate it.
Reply to Charles
- Michael Branson
  March 27th, 2019
  
  Hello Charles,
  
  We have received no previous comments/questions from you at this address. I'm sorry, I cannot answer what I do not have and since the question is not restated here, I do not even know where to start. If you do want to resend though, I would be happy to give you an answer to the best of my ability.
  
  As a general comment, the reverse mortgage no prohibitions against additional financing once the loan is closed. The issue is really whether or not you will be able to find a lender willing to go into a junior lien position behind the reverse mortgage. Because there are no payments required on the reverse mortgage, the balance continues to grow as the interest accrues when borrowers use the loan as intended (live in the home and access equity without making any loan payments).
  
  That is not to say that you absolutely cannot find a lender willing to place a loan behind a reverse mortgage, but it might be a difficult chore. The government reverse mortgage programs (the Home Equity Conversion Mortgages or "HECM") have two Deeds (an additional one to HUD to protect their interest in case they have to step in to continue making payments to borrowers) and so the 2nd mortgage you refer to would actually be in 3rd lien position. Since the reverse mortgage starts at such a low percentage of the overall value of the property, there may still be some willing to lend in 3rd position, especially in the earlier years of the loan or if the junior lien was for a shorter term. Unfortunately though, we do not work with any such lenders and would not be able to give you a recommendation for one.
  
  I hope this gives you enough to answer your question but if not and you still wish additional information, please do not hesitate to let me know.
  Reply to Michael

HomeSafe Second Reverse Mortgage: Access Equity Without Refinancing

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Unlock Your Equity Without Refinancing

HomeSafe Second Reverse Mortgage: Access Equity Without Refinancing

Unlock Your Home’s Equity Without Refinancing

What Is HomeSafe Second?

Who Qualifies for HomeSafe Second Reverse Mortgage?

Common Uses for HomeSafe Second

How HomeSafe Second Compares to Other Loan Options

HomeSafe Second Loan Examples

Example 1: Homeowner with a $500,000 Home

Example 2: Homeowner with a $2 Million Home