Finance of America is expanding its HomeSafe Second product into Indiana, Ohio, and Michigan, bringing its total availability to 16 states. This expansion underscores a growing opportunity for mortgage professionals as older homeowners increasingly access record levels of housing wealth.
The company announced the availability of its proprietary second-lien reverse mortgage in these three states this week. This move responds to rising demand among homeowners aged 55 and older who seek to access home equity without refinancing out of historically low mortgage rates.
Originally introduced in 2023, HomeSafe Second offers an alternative to traditional home equity products. It allows borrowers to access a lump sum of equity without taking on a new monthly mortgage payment, preserving their existing first-lien mortgage.
For mortgage professionals, the product's growth aligns with a broader demographic and market shift: older Americans now control an unprecedented share of U.S. housing wealth. A Redfin analysis found that Americans aged 70 and older held 26% of the nation’s $48 trillion in real estate wealth as of Q3 2025. This represents the highest share on record and a significant increase from prior decades. This cohort has steadily gained ground, while younger buyers have seen their share stagnate or decline amid affordability challenges and higher borrowing costs.
Equity-Rich, Rate-Locked Borrowers Drive Demand
Finance of America’s expansion targets a borrower profile common in the current rate environment: equity-rich but rate-locked homeowners. Home values have risen roughly 55% since 2020, according to the National Association of Home Builders (NAHB), creating substantial untapped equity for long-term homeowners. Simultaneously, mortgage rates have nearly doubled from pandemic-era lows, making many borrowers reluctant to refinance out of loans with rates in the 2% to 3% range. This dynamic fuels demand for second-lien solutions that preserve the first mortgage while unlocking liquidity.
“Many retirees face mounting pressure from rising healthcare expenses and everyday living costs,” Kristen Sieffert, president of Finance of America, said in the announcement. “For homeowners who have built substantial equity, their home can be a powerful financial tool.” The company stated that HomeSafe Second enables borrowers to convert a portion of their equity into cash without required monthly principal and interest payments, provided they continue to meet obligations such as taxes, insurance, and property maintenance.
Housing Wealth Grows As Retirement Planning Tool
This expansion also reflects a broader shift in how housing wealth is used in retirement planning. Americans aged 62 and older hold more than $14 trillion in home equity, according to the National Reverse Mortgage Lenders Association (NRMLA), making housing one of the largest financial assets for retirees. Concurrently, retirement costs are rising. Fidelity estimates a 65-year-old retiring today may need approximately $165,000 to $175,000 for healthcare expenses alone, excluding housing and other costs.
Against this backdrop, borrowers increasingly use equity to fund renovations, consolidate debt, support family members, or preserve investment portfolios during market volatility, the company said. For mortgage professionals, the convergence of these trends — aging demographics, high home equity levels, and rate lock-in — is reshaping the home equity lending landscape.
Opportunity For Mortgage Professionals
The data suggests a widening gap between older and younger housing participants, with implications for product strategy and borrower outreach. While older homeowners continue to accumulate equity, younger Americans face ongoing affordability constraints, with mortgage rates near 6% and home prices still elevated relative to incomes. This divergence is expected to maintain strong demand for products tailored to older borrowers, particularly those that avoid refinancing or additional monthly payment obligations.
HomeSafe Second competes with home equity lines of credit (HELOCs) and traditional home equity loans but differs in structure by offering fixed-rate terms and no required monthly mortgage payments. This feature may appeal to retirees managing fixed incomes. As trillions of dollars in housing wealth are expected to transfer between generations in the coming decades, lenders and mortgage professionals are increasingly viewing home equity as a central component of long-term financial planning.
For mortgage professionals, Finance of America’s latest expansion signals that the reverse mortgage and second-lien segment, once a niche market, is becoming a more prominent channel for production in a higher-rate, lower-refinance environment.
