If you own a second home in Oregon or Washington and you’re 55 or older (60+in WA), there’s a new financing option that could change how you approach retirement: the EquityPower second home mortgage.

This proprietary retirement mortgage allows homeowners to access the equity in their second homes without taking on monthly mortgage payments: giving you the cash flow you need while keeping the property you love.

What Is a Second Home Mortgage for Retirement?

Traditional second home mortgages require monthly principal and interest payments, which can strain retirement budgets. The EquityPower second home mortgage works differently.

Similar to a Home Equity Conversion Mortgage (HECM) but designed specifically for second homes, this proprietary product allows qualified homeowners to convert their home equity into usable funds without the burden of monthly mortgage payments.

You remain responsible for property taxes, homeowners insurance, HOA fees, and property maintenance, but you eliminate the monthly mortgage payment that can drain your income.

Who Qualifies for an EquityPower Second Home Mortgage?

To be eligible for this second home mortgage product, you must meet the following requirements:

Age Requirements:

• Oregon homeowners: Minimum age 55
• Washington homeowners: Minimum age 60

Additional Qualifications:

• The property must be located in Oregon or Washington
• You must meet financial assessment criteria
• The property must meet standard lending requirements

How Does a Second Home Mortgage Differ from a Primary Residence Home Equity Conversion Mortgage?

The EquityPower second home mortgage fills a critical gap. It brings the benefits of a HECM—no monthly mortgage payments, equity access, aging in place, to second home owners who need liquidity but don’t want to sell.

Key Differences:

• Property Type: EquityPower works on second homes; HECM requires primary residence
• Age Requirements: EquityPower allows ages 55+ in Oregon (60+ in WA); HECM requires 62+
• Flexibility: EquityPower offers more flexible underwriting for unique scenarios

When Does an EquityPower Second Home Mortgage Make Sense?

This type of second home mortgage is ideal for homeowners who:

✅ Own a second home they want to keep enjoying throughout retirement 

✅ Need access to equity but don’t want monthly mortgage payments 

✅ Want to preserve other retirement assets and investments 

✅ Have sufficient equity in their second home

✅ Plan to maintain the property and stay current on taxes and insurance

Real-World Example:

Meet Tom and Susan, ages 59 and 61, who own a paid-off cabin in central Oregon worth $650,000. They love spending spring and summer there with their grandchildren but need $100,000 to cover some renovations and supplement their retirement income.

Their options:

1. Sell the cabin (losing their retreat and family gathering spot)
2. Take out a traditional second home mortgage (adding $600+ monthly mortgage payments to their fixed income)
3. Apply for an EquityPower second home mortgage (access equity with no monthly mortgage payment)

Tom and Susan chose option three. They accessed the equity they needed, eliminated monthly mortgage payments, and continue enjoying their cabin throughout retirement.

Important Considerations for a Second Home Mortgage

What You’ll Still Pay:

Even without a monthly mortgage payment, you remain responsible for:

• Property taxes
• Homeowners insurance
• HOA fees (if applicable)
• Property maintenance and repairs

When the Loan Becomes Due:

The EquityPower second home mortgage balance becomes due when:

• The last borrower passes away
• The property is sold
• The borrower moves out permanently
• Required property expenses are not maintained

At that time, the loan is typically repaid through the sale of the property. Any remaining equity goes to the borrower or their heirs.

Planning for Your Heirs:

Unlike keeping the property completely free and clear for inheritance, a second home mortgage means the loan will need to be repaid (usually by selling the property) after the owners pass. This should be part of the estate planning conversation. 

How to Get Started with an EquityPower Second Home Mortgage

If you’re interested in exploring whether an EquityPower second home mortgage makes sense for your situation, here are the next steps:

1. Assess Your Eligibility

Call us. We will confirm that you meet the age requirements (55+ in Oregon, 60+ in Washington) and that your property is located in an eligible state.

2. Gather Financial Documentation

You’ll need documentation of income, assets, credit history, and property details. We will cover the specifics in the phone call. 

3. Consider Your Long-Term Goals

Think about how long you plan to keep the property, your overall retirement strategy, and how this fits into your estate planning. This isn’t a one size fits all solution, but we might have other options if this one isn’t ideal. Let’s discuss your overall goals before you make any decisions. 

Why Choose Freestone Mortgage for Your Second Home Mortgage?

At Freestone Mortgage, we specialize in retirement-focused lending solutions. Our team understands the unique needs of homeowners age 55 and older who want to maximize their home equity without sacrificing their quality of life.

We offer:

• Expertise in retirement mortgages including HECM and proprietary products like EquityPower
• Personalized service tailored to your specific financial situation
• Transparent guidance through every step of the process
• Access to flexible lending programs designed for second homes of various types

Is an EquityPower Second Home Mortgage Right for You?

If you own a vacation home in Oregon or Washington and you’re looking for ways to access equity without monthly mortgage payments, the EquityPower second home mortgage could be an ideal solution.

This isn’t the right fit for everyone, especially if you’re planning to leave the property debt-free to your heirs and don’t have a life insurance policy that will pay the mortgage balance off after you pass. But for homeowners who want to enjoy their second home throughout retirement while accessing needed equity, it offers a powerful financial tool.

Questions to Ask Yourself:

• Am I 55+ in Oregon or 60+ in Washington?
• Do I need liquidity but want to avoid monthly mortgage payments?
• Am I comfortable with the loan being repaid when I pass or sell the property?
• Will I be able to maintain property taxes, insurance, and upkeep?

If you answered yes to these questions, it’s worth exploring how an EquityPower second home mortgage could support your retirement goals.

Take the Next Step

Ready to learn more about how a second home mortgage through the EquityPower program can unlock your second home equity? Contact Freestone Mortgage today to speak with a retirement mortgage specialist who can evaluate your unique situation and help you make an informed decision.

Your second home represents years of memories and significant financial value. With the right second home mortgage strategy, you can access that value while continuing to enjoy the property you love throughout your retirement years.

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Contact Freestone Mortgage to discuss your EquityPower second home mortgage options today.

This article is for informational purposes only and does not constitute financial advice. Consult with a qualified mortgage professional to determine the best strategy for your individual circumstances.