Finance of America Expands HomeSafe in Three States

Finance Of America Expands HomeSafe In Three States

Finance Of America on Tuesday announced a three-state rollout of its HomeSafe Second product, extending access to Indiana, Ohio and Michigan. The move is pitched as a practical way for seniors to tap home equity without disturbing a low-rate first mortgage that may still be in place. The expansion brings HomeSafe Second to 16 states nationwide.

The company framed the expansion as finance america expands homeSafe into three new markets, signaling confidence that more retirees want liquidity without a full refinance. HomeSafe Second is a second-lien reverse mortgage that provides a lump sum to eligible homeowners while they continue to own their homes and avoid monthly principal and interest payments, provided they stay current on taxes and insurance.

What HomeSafe Second Is And How It Works

HomeSafe Second targets homeowners ages 55 and older in some markets and 62 and older in others. The loan is secured by a second lien rather than a new first mortgage. Borrowers maintain ownership of the home and can access cash without disrupting a first mortgage that may have favorable terms from the pandemic era.

As with federally insured alternatives, the borrower’s obligation shifts to the house itself if ownership transfers or the loan becomes due. The arrangement is designed to provide liquidity while preserving homeownership for seniors who are equity-rich but rate-locked in a rising-rate environment.

Market Context Driving The Expansion

• Home values have climbed roughly 55% since 2020, according to the National Association of Home Builders, creating substantial equity for older homeowners.
• Mortgage rates have moved higher since the pandemic, now hovering in the mid-to-high 6% range by early 2026, making new first mortgages less attractive for some seniors seeking cash.
• NRMLA data show Americans aged 62 and older hold more than $14 trillion in home equity, underscoring the potential demand for non-traditional liquidity tools.
• Fidelity Investments estimates that a 65-year-old retiring today may need about $165,000 to $175,000 to cover health care costs over retirement.

A Finance Of America spokesperson said the expansion aligns with a broader strategy to broaden access to retirement liquidity options, particularly for homeowners who are equity-rich but rate-locked. The company noted that the three-state rollout reflects demand in midwestern markets where large sums of home equity are common but refinancing may be expensive.

What It Means For Seniors

• No monthly payments are due on the HomeSafe Second loan as long as the homeowner remains in the residence and continues to pay taxes, insurance and upkeep.
• Eligibility varies by market, with some states accepting borrowers aged 55+ and others requiring 62+. The expansion into Indiana, Ohio and Michigan broadens options for homeowners who want liquidity without altering their first mortgage.
• Funds from HomeSafe Second can be used for a range of retirement needs, including medical expenses, home improvements, debt relief, or daily living costs, while keeping ownership of the home intact.

Availability And Next Steps

In addition to Indiana, Ohio and Michigan, HomeSafe Second is offered in 16 states: AZ, CA, CO, CT, FL, IL, IN, MI, MT, NV, OH, OR, SC, TX, UT, WA. Finance Of America says it will coordinate with local lenders to finalize terms and underwriting in each state and will disclose pricing as the rollout progresses.

Industry Context And Outlook

Industry observers say demand for retirement liquidity tools remains strong as more seniors look to convert home equity into cash without taking on new debt secured by a high-rate first mortgage. The Indiana, Ohio and Michigan expansion illustrates how lenders are adapting products to a higher-rate environment while still prioritizing homeowner control and equity retention.

Observers note that the broader trend is toward nonrefinance options that enable seniors to unlock cash while preserving the benefit of existing low-rate first mortgages. The expansion also reflects a competitive landscape in which lenders seek to broaden the pool of eligible homeowners without traditional refinancing.

About Finance Of America

Finance Of America is a lender focusing on reverse mortgages and related home-equity solutions. The company has been expanding its portfolio as demand for retirement liquidity options grows amid higher living costs and fluctuating interest rates. The latest three-state expansion is part of a broader push to reach more seniors with nontraditional liquidity tools.

Key Takeaways

• Expansion to Indiana, Ohio and Michigan broadens HomeSafe Second’s footprint to 16 states.
• The product provides a lump-sum, second-lien option with no monthly payments, subject to occupancy and tax/insurance requirements.
• Market conditions—rising home values and higher rates—are shaping demand for nonrefinance liquidity tools.

As the retirement landscape evolves, the push to expand homesafe options continues to be a focal point for lenders seeking to offer more flexible paths to liquidity without forcing homeowners to refinance favorable first-rate mortgages. The message from executives is clear: homeowners need more ways to unlock cash while staying in their homes, and the industry is listening.