Finance of America expands second-lien product's reach

July 7, 2026 - 17:49

The reverse mortgage lender Finance of America has expanded the availability of its HomeSafe Second product, now making it accessible in over one-third of all U.S. states. The company announced that the second-lien offering is designed for homeowners aged 55 and older who want to tap into their home equity without paying off an existing first mortgage. This move aims to capture a growing segment of borrowers who may not qualify for a traditional reverse mortgage due to an outstanding primary loan balance.

The HomeSafe Second allows qualified homeowners to receive a lump sum or line of credit while keeping their current first mortgage in place. Finance of America noted that the product's expansion reflects increasing demand for flexible retirement funding options, particularly as home values have risen sharply in recent years. By broadening the geographic footprint, the lender hopes to serve more older adults looking to supplement retirement income or cover unexpected expenses without selling their home or taking on a high-interest personal loan.

Company executives emphasized that the product fills a gap in the market for borrowers who have significant equity but still owe on their primary mortgage. The expansion comes as the reverse mortgage industry sees renewed interest from both borrowers and financial advisors seeking alternatives to traditional home equity loans or cash-out refinancing. Finance of America did not specify which new states were added, but confirmed that the product is now available across a diverse range of regional housing markets.