Loan Program
Reverse Second Mortgage
Reverse second mortgage (55+)
Access your home equity without replacing your current mortgage
If you’re 55 or older, a Reverse Second Mortgage may allow you to convert a portion of your home equity into cash while keeping your existing first mortgage in place. Unlike a traditional reverse mortgage that replaces your current mortgage, a Reverse Second Mortgage is designed as a second lien, giving eligible homeowners access to additional funds without refinancing their primary mortgage.
Whether you’re looking to supplement retirement income, cover unexpected expenses, make home improvements, or create greater financial flexibility, a Reverse Second Mortgage can provide access to equity while preserving the mortgage you already have.
What is a reverse second mortgage?
A Reverse Second Mortgage is a home equity loan designed specifically for homeowners age 55+. It allows qualified borrowers to borrow against the equity in their home through a second mortgage while continuing to keep and pay their existing first mortgage.
Instead of replacing your current mortgage with a new reverse mortgage, this program adds a second mortgage that typically requires no monthly principal and interest payments on the reverse second loan, as long as loan obligations continue to be met.
This can be an attractive option for homeowners who already have a favorable interest rate on their first mortgage and do not want to refinance it.
Reverse Second Mortgage Vs. Traditional Reverse Mortgage
What’s the Difference?
Reverse Second Mortgage (55+)
- Available to eligible homeowners age 55 and older
- Lets you access home equity while keeping your existing first mortgage
- No required monthly mortgage payments on the reverse second loan
- Repayment is generally deferred until the home is sold, the borrower moves out permanently, or other loan obligations are not met
- Can provide a lump sum, line of credit, or monthly payments depending on the program
- Income and credit requirements may be more flexible than a traditional refinance
- Designed for homeowners who want additional cash flow without replacing a favorable first mortgage rate
- Homeowner must continue paying property taxes, homeowners insurance, and maintain the home
Traditional Refinance
- Available to qualified borrowers of most ages
- Replaces your current mortgage with a new loan
- Monthly principal and interest payments are typically required
- Repayment begins immediately after closing
- Usually provides a new mortgage balance and may include cash-out proceeds
- Income, credit, debt-to-income ratio, and employment are key qualification factors
- Often used to lower the interest rate, change the loan term, or consolidate debt
- Homeowner must make monthly mortgage payments in addition to taxes and insurance
Who is eligible?
The Reverse Second Mortgage program is specifically designed for homeowners age 55 and older.
Basic eligibility requirements may include:
- At least 55 years of age
- Sufficient home equity
- Primary residence requirements
- Ability to continue paying property taxes, homeowners insurance, HOA dues (if applicable), and maintaining the home
- Meeting lender qualification guidelines
Eligibility and available loan amounts depend on factors such as age, home value, existing mortgage balance, and program requirements.
Benefits of a Reverse Second Mortgage
- Keep your existing first mortgage and preserve your current loan terms.
- Access tax-free cash* from your home equity for retirement, home improvements, medical expenses, or other financial needs.
- No required monthly principal and interest payments on the Reverse Second Mortgage, as long as loan obligations continue to be met.
- Remain in your home while benefiting from the equity you’ve built.
*Consult a tax advisor regarding your specific situation.
Common Uses For A Reverse Second Mortgage
Homeowners often use this program to improve financial flexibility during retirement.
Popular uses include:
- Supplementing retirement income
- Paying for healthcare or long-term care needs
- Renovating or adapting a home for aging in place
- Eliminating higher-interest debt
- Helping children or grandchildren
- Creating a financial safety net
Is A Reverse Second Mortgage Right For You?
This program may be worth exploring if you:
- Are 55 or older
- Want to access home equity
- Wish to keep your existing first mortgage
- Prefer not to refinance your current mortgage
- Need additional funds without taking on a traditional home equity payment
Because a Reverse Second Mortgage differs from a traditional reverse mortgage, it can be an effective solution for homeowners who want to preserve their current financing while unlocking additional equity.
Why work with us?
We take the time to explain how a Reverse Second Mortgage works, review your eligibility, compare it with other equity options, and help you determine whether it fits your financial goals.
Our goal is to provide clear guidance so you can make an informed decision about using your home equity responsibly.
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Mortgage rates can change daily, and staying informed can help you make better financing decisions. Subscribe to receive daily mortgage rate updates, market trends, and reverse mortgage insights directly in your inbox.
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Rate disclaimer: Mortgage rates are subject to change without notice and may fluctuate multiple times per day based on market conditions. The rates and information provided through our updates are for informational purposes only and are not guaranteed rate quotes, loan commitments, or offers to lend. Your actual rate will depend on factors such as credit profile, property type, loan amount, occupancy, and lender guidelines.
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Frequently asked questions
What is a Reverse Second Mortgage?
A Reverse Second Mortgage allows eligible homeowners 55+ to access home equity through a second mortgage while keeping their existing first mortgage.
Do I have to refinance my current mortgage?
No. This program is designed to keep your existing first mortgage in place.
Are monthly payments required?
Qualified borrowers generally are not required to make monthly principal and interest payments on the Reverse Second Mortgage, as long as loan obligations continue to be met.
Who may qualify?
Homeowners 55 or older with sufficient home equity who meet lender and property requirements may be eligible.
What can I use the funds for?
Funds can be used for retirement income, home improvements, medical expenses, debt consolidation, emergency reserves, or other financial needs.
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