Record senior home equity is fueling demand for new solutions for older American homeowners

Older American homeowners hold substantial home equity, built over decades of steady ownership. With refinances scarce and mortgage rates still elevated, that stockpile has become the most durable growth story in housing finance—and one of the most practical ways to help older households manage expenses, preserve independence and stay in their homes.

The question is not whether the equity exists. It’s whether today’s lending products are structured to meet the realities facing this demographic—many of whom may be retired, semi-retired or working later in life on fixed or reduced incomes.

Fixed incomes, rising costs

Millions of homeowners 62 and older are navigating limited or fixed incomes while facing rising housing costs. Tapping into the equity they’ve built in their homes — even in small, carefully planned amounts — can help cover expenses like home repairs, in-home care or everyday bills. When used responsibly, home equity becomes more than just a personal financial resource, but also an industry opportunity to provide responsible senior lending solutions and strengthen long-term client relationships.

That requires a broader toolkit. Reverse mortgages remain a cornerstone of senior lending, offering strong advantages and built-in consumer protections. Yet, despite growing awareness, they are still widely misunderstood and shaped by years of misconceptions. While more consumers and financial professionals are beginning to recognize the benefits—such as the option to forgo monthly mortgage payments (borrowers must continue to meet loan obligations, including property taxes, homeowners insurance, and home maintenance)—many older homeowners continue to feel more comfortable with traditional products like a home equity line of credit (HELOC).

The challenge is that traditional HELOCs weren’t built with seniors in mind. They often require high incomes, involve complex applications, and can lead to unpredictable payment spikes—all of which can create additional financial strain instead of relief.

A new option: HELOC For Seniors

At Longbridge Financial, we’ve partnered with Figure Technology Solutions to introduce a new option: HELOC For Seniors, the first home equity line of credit designed specifically for older homeowners.

Unlike a traditional HELOC, this product was built with senior homeowners in mind. Each draw carries a fixed rate,¹ eliminating the uncertainty of variable-rate resets. Payments are interest-only for the life of the loan,² making them more manageable for borrowers on a fixed or reduced income. Additionally, borrowers won’t face a balloon payment or forced payoff as long as they remain current on loan obligations. 

Homeowners can access up to $400,000,³ with approvals and closings often finalized in as little as five business days⁴ thanks to a fully digital application process.

For industry partners, this combination of stability and speed opens new opportunities to serve the growing market of senior homeowners. The goal is not to replace reverse mortgages, but to broaden the range of solutions, helping partners to meet a wider range of client needs with products that align with the financial realities of older homeowners.

Why this product matters in practice

The launch of HELOC For Seniors represents more than just a new loan option, it represents a shift in how the industry engages an underserved but asset-rich demographic. Traditional HELOCs often don’t fit the financial realities of older homeowners, leading to denials or terms that simply aren’t suitable. A senior-focused line with a fixed-rate per draw,¹ interest-only payments,² and no unexpected balloon payments² addresses these pain points, offering a structure that fits later-life budgets without adding volatility.

For wholesale partners, the implications are significant. The product expands the conversation beyond reverse mortgages, giving loan officers, call-center teams and advisors an alternative option to present alongside existing solutions. This flexibility can strengthen borrower relationships, open up new referral pipelines and differentiate partner platforms in a competitive market.

A purpose-built HELOC like HELOC For Seniors also presents a proactive way to engage high-equity borrowers 62 and older. By supporting the costs associated with home maintenance, offering cash flow for repairs, and providing a sustainable payment structure, it can reduce roll rates, improve retention and reinforce long-term customer loyalty.

Meeting the moment

The equity is there. The demand is steady. By modernizing access with products like HELOC For Seniors, the industry can help older homeowners convert long-earned housing wealth into everyday financial resilience—while giving partners a sustainable way to capture and retain relationships in a competitive market.

HELOC For Seniors is available now in 16 states including Arizona, California, Florida, Nevada, New Jersey, Ohio, Virginia, and Washington, with additional states coming soon. Learn more at HELOCForSeniors.com.

HELOC for Seniors is offered by Longbridge Financial, LLC (NMLS #957935)  in collaboration with Figure Technology Solutions. Terms and availability vary by state and are subject to underwriting. This column is for informational purposes and is not a commitment to lend.

¹ HELOC For Seniors is an open-end product where a minimum of 80% and up to a maximum of 100% of the full loan amount (less the origination fee and costs) must be drawn at closing. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the 10 year draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.

² You must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.

³ Loan amounts range from a minimum of $50,000 to a maximum of $400,000. Your maximum loan amount may be lower than $400,000, and will ultimately depend on your home value, lien position, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.

⁴ Approval may be granted in ten minutes but is ultimately subject to verification of income, employment, and property value, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing, or require a waiting period prior to closing.