Finance of America Reverse LLC announced the launch of HomeSafe Second Line of Credit, a new solution designed to provide homeowners greater flexibility in how – and when – they access their home equity, without adding a new monthly charge or giving up a potentially low mortgage rate.
Available in California beginning April 1, HomeSafe Second Line of Credit is the industry’s first reverse second line of credit. It allows homeowners aged 55 and over to raise funds over time, as needed, after an initial 25% drawdown at underwriting – while preserving their existing first mortgage and without committing to the new mandatory monthly payments of a traditional Home Equity Line of Credit (HELOC). Many owners benefiting from a lower rate senior loan do not wish to access their capital through refinancing towards a higher rate loan, but remain interested in monetizing their real estate assets.
Homeowners are also discouraged by traditional HELOCs that require regular monthly payments, adding a new expense. HomeSafe Second Line of Credit removes these two constraints. Owners can establish a line of credit allowing them to have liquidity as they need.
HomeSafe Second Line of Credit gives homeowners the flexibility they need, whether it’s planning for the future or dealing with the unexpected. In California, real estate ownership remains a determining pillar of financial security, particularly among those over 55. Nearly three-quarters of Californians 65 and older own their homes, and according to Zillow, the median home value is around $775,000, among the highest in the country.
Many homeowners accumulated substantial unrealized capital gains during the pandemic-era real estate boom and are now “locked in” to historically low mortgage rates. As a result, many have significant capital but are looking for more flexible ways to access liquidity without second-guessing their previous financial decisions. This demand is already evident: withdrawals of second-tier capital jumped 22% year-on-year in the first quarter of 2025, reaching their highest level in 17 years.
HomeSafe Second Line of Credit meets this growing demand. As more and more homeowners seek cash flow without refinancing, the popularity of flexible second-tier solutions continues to grow. To help homeowners transform their real estate assets into a more accessible financial resource, HomeSafe Second Line of Credit is designed to offer: flexibility –
After the initial minimum drawdown of 25% required at signing, borrow only what you need, when you need it, over a 10-year drawdown period. Growth potential – offering a growth rate of 1.5% on the undrawn line of credit for the first 7 years.
Mortgage rate preservation – no need to refinance or replace a lower rate senior loan.
