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HomeSafe Second: tap your equity and keep your first mortgage
Quick answer
HomeSafe Second is a reverse second mortgage: it lets homeowners 55 and older in California borrow against their equity while keeping the first mortgage they already have, with no required monthly payment on the new loan. You still pay your first mortgage, property taxes, homeowners insurance, HOA dues and upkeep, and the new loan's balance grows over time.
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Key points
- It keeps your first mortgage. It sits behind the mortgage you have now, so that loan's rate and terms stay the same.
- No required payment on the new loan, with conditions. You keep paying your first mortgage, property taxes, insurance, HOA dues and upkeep, and you live in the home as your main home.
- The balance grows. Interest is added to what you owe over time unless you choose to make payments.
- It isn't a HECM. It's a private (proprietary) loan, not part of HUD's program, and its rules are different.
- California's protections still apply. Independent counseling before you apply, a 7-day wait, and a non-recourse loan.
What it is
HomeSafe Second is a proprietary (private) reverse mortgage. It isn't part of HUD's Home Equity Conversion Mortgage (HECM) program and isn't FHA-insured. It's one of the reverse mortgages I can offer through New American Funding.
Most reverse mortgages replace the mortgage you have. HomeSafe Second doesn't. It's a second mortgage that sits behind your current one, a little like a home equity line of credit, except no monthly mortgage payment is required on it (you still pay your first mortgage, property taxes, insurance, HOA dues and upkeep).
That matters if your first mortgage has a rate you don't want to give up.
Questions so far? Tom is glad to walk you through it. Call Tom: (909) 869-6588 →
The basics (from the HomeSafe Second product page)
| Feature | HomeSafe Second |
|---|---|
| Minimum age | 55 in California |
| Loan amount | The program sets its own minimum and maximum; ask for them in writing |
| How you receive it | A lump sum, or a line of credit you draw from in stages. Money you repay on the line can't be drawn again. |
| Monthly payment on this loan | None required. You can pay any amount, any time, without a penalty. |
| Your first mortgage | Stays in place, and you keep making its payments |
| Where it's offered | Select states, including California |
No monthly mortgage payment is required on HomeSafe Second, but you still pay your first mortgage, property taxes, homeowners insurance, HOA dues and upkeep, and live in the home as your main home.
What it costs you
I'll show you every cost first. Like other mortgages, it has upfront costs. The product page lists counseling, an appraisal, a loan origination fee (it varies by state; ask for the exact amount in writing), and other closing costs such as title, escrow, credit report and recording fees. Some of these can be paid from the loan.
The bigger cost is over time, and I want you to understand this part: interest is charged on what you've borrowed and added to the balance, so you owe more each year unless you make payments. That leaves less equity for you or your heirs.
Who it may fit, and who it may not
| May fit | May not fit |
|---|---|
| You want to keep a first mortgage you're happy with | You want to leave as much equity as possible to your heirs |
| You'd rather not take on a new monthly bill | You don't have much equity in the home |
| You have a lot of equity built up | Keeping up the home would be hard |
| You need money for planned or unexpected costs | You plan to move soon |
Questions about your own situation?
Talk with Tom Jarboe. He's been helping families with home loans since 1986. You'll get plain answers, and he'll tell you if a reverse mortgage isn't the right fit.
What you keep doing
Because your first mortgage stays, you keep making its payments. You also pay property taxes, homeowners insurance, HOA dues and upkeep, and live in the home as your main home. If you don't meet the loan terms, including the terms of your first mortgage, the loan can come due and the home can go to foreclosure.
How it ends
The loan comes due when you move out, don't meet the loan terms, or pass away. It can be paid off by selling the home, or with other money if you or your heirs want to keep it.
California law defines a reverse mortgage as a non-recourse loan, and the product page says neither you nor your heirs will owe more than the home's value on this loan when it comes due and the home is sold.
Your first mortgage is a separate loan: it must also be paid off, or kept up, by you or your heirs.
California's protections
California's reverse mortgage law covers any reverse mortgage, not just HECMs. Before a lender can take your final application or charge a fee, you meet with an independent HUD-approved counselor, and then 7 days have to pass. See counseling near Diamond Bar. HomeSafe Second also gives you three business days after signing to cancel for any reason.
HomeSafe Second, a HECM, or a home equity line?
| Feature | HomeSafe Second | HECM (FHA-insured reverse mortgage) | Home equity line of credit |
|---|---|---|---|
| Your first mortgage | Stays | Paid off by the new loan | Stays |
| Monthly payment on the new loan | None required | None required | Required |
| Minimum age | 55 in California | 62 | Set by the lender |
| Insured by FHA | No | Yes (the insurance protects the lender) | No |
| Set-aside for taxes and insurance | Ask the lender | May be required after the Financial Assessment | No |
| Balance | Grows unless you pay | Grows unless you pay | Goes down only when you pay principal |
With all three, you still pay property taxes, homeowners insurance, HOA dues and upkeep, and your first mortgage if it stays. A HECM may let you stop paying a first mortgage altogether, but only if the new loan is big enough to pay it off.
See refinancing into a reverse mortgage. New American Funding is not acting for HUD, FHA or any government agency.
Do and don't
My advice, in short:
Do
- Do compare it with a HECM refinance and a home equity line before you decide.
- Do ask for every cost in writing, including the origination fee and closing costs.
- Do keep paying your first mortgage, property taxes, insurance and HOA dues on time.
- Do meet with an independent HUD-approved counselor, and bring your questions about your first mortgage.
Don’t
- Don't assume HUD's HECM rules apply. This is a different loan with its own terms.
- Don't borrow more than you need just because it's available, because the balance grows.
- Don't take it if you plan to move soon, since upfront costs are hard to make back over a short time.
Want to know what this means for your home? Get your personal estimate from Tom →
A made-up example to show how it works. Your situation will be different.
Example: Lorraine keeps her mortgage
Lorraine, 59, lives in Walnut. Her first mortgage has a rate she doesn't want to lose, and she'd like money for a new roof and some medical bills. She isn't old enough for a HECM, and a home equity line would add a monthly payment.
A lender explains HomeSafe Second: her first mortgage stays, no monthly mortgage payment is required on the new loan, and the balance will grow unless she pays something toward it. She'd still pay her first mortgage, taxes, insurance and upkeep.
She asks for the costs in writing, books a session with an independent counselor, and waits the 7 days before deciding.
Questions families ask
Can I get a reverse mortgage and keep my current mortgage?
With HomeSafe Second, yes: it sits behind your current mortgage, which stays in place. With a HECM, the new loan has to pay off any existing mortgage.
Is HomeSafe Second the same as a HECM?
No. It's a proprietary (private) loan. It isn't part of HUD's HECM program and isn't FHA-insured, so its age rules, loan amounts and terms are different.
Do I have to make monthly payments?
None are required on HomeSafe Second, and you can pay any amount without a penalty. You still make your first mortgage payments, and you still pay property taxes, homeowners insurance, HOA dues and upkeep.
Can my kids keep the house?
Yes, if they pay off HomeSafe Second, for example with their own money or a new loan, and also pay off or keep up the first mortgage. They can also sell the home and use the proceeds.
I'm 58. Is that too young?
Not for HomeSafe Second in California, where the minimum age is 55. A HECM requires the youngest borrower to be 62.
Your next step
Talk with me first. I'll answer your questions, compare HomeSafe Second with a HECM and a home equity line for your situation, and tell you plainly if none of them fits, with no pressure. Call (909) 869-6588 or email [email protected]. About me
Before you can apply for HomeSafe Second, you'll meet with an independent HUD-approved counselor. California requires it for any reverse mortgage (Civil Code 1923.2), and I'll give you a list of agencies. There's also a 7-day wait after counseling before a final application or any fees. Find one on HUD's site or call (800) 569-4287.
Sources (read November 2, 2026)4 sources · show all
- California Civil Code 1923, definition of a reverse mortgage as a non-recourse loan: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1923
- California Civil Code 1923.2, counseling and the 7-day wait: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1923.2
- HUD housing counselor search: https://answers.hud.gov/housingcounseling/s/?language=en_US
- 24 CFR part 206 (HECM rules: age 62, existing liens paid at closing, set-asides), for the comparison table: https://www.ecfr.gov/current/title-24/subtitle-B/chapter-II/subchapter-B/part-206
Free
Reverse Mortgages in California: A Family Guide
I put the key rules from this site into one printable guide for your family: how it works, set-asides, what happens when a parent dies, and the questions to ask. Instant download after you enter your email. No phone number needed.
Tom Jarboe, Regional Sales Manager, New American Funding, NMLS #210600, Diamond Bar.
As a loan officer, I want you to be able to check everything. That's why I give you honest answers on both sides, cite the official rules, and make sure you meet an independent HUD-approved counselor before you apply. My goal is that you make an honest, educated decision. More about me.