What is a reverse second mortgage?
By AbeAugust 12, 2026Reverse 2nd Mortgages
Short Answer
A reverse second mortgage is a second-lien equity loan for eligible older homeowners that may allow access to cash without replacing an existing first mortgage and without a required monthly principal-and-interest payment on the new second lien.
Full Detailed Answer
Unlike a traditional reverse mortgage refinance, the existing first mortgage may remain in place. This can be attractive when the homeowner has a favorable first-mortgage rate but wants to access additional equity.
The homeowner must continue making any required payment on the first mortgage and must keep taxes, insurance, maintenance, and other property obligations current. Interest and charges on the reverse second accrue according to the product terms, increasing its balance over time.
This is a proprietary product, not an FHA HECM, so age, property, loan amount, equity, state availability, and financial requirements vary. Review both liens together to understand the total debt against the home.
What Abe Will Review
- Existing first-mortgage balance and payment
- Age and available equity
- Second-lien terms and accrued balance
- State and product availability
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