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Scenario

A Second Home —
Without Draining Your Savings

Want a place in Florida, the Carolinas, or upstate — but don't want to liquidate investments to get it? A HECM on your Long Island primary residence can free up the equity to make it happen.

How It Works

Tap Long Island Equity. Buy Somewhere Else.

A HECM can only be placed on your primary residence — that's a federal rule. But the proceeds from that HECM aren't restricted. You can use them for anything, including funding or helping to fund the purchase of a second home or seasonal property.

For Long Island homeowners sitting on significant equity in their primary residence, this creates an opportunity: access that equity with no required monthly payment, and use the funds to purchase a second property — often paying cash, or combining HECM proceeds with savings to avoid a traditional mortgage on the second home.

Important distinctions:

  • The HECM goes on your primary Long Island residence — you must continue living there as your primary home
  • The second home purchase is funded with HECM proceeds, savings, or a combination
  • The second property does not have a HECM on it — you're buying it conventionally with equity-sourced funds
  • You maintain taxes, insurance, and upkeep on your primary residence as required by the HECM
  • This works best when you have substantial equity and moderate to no existing mortgage on your primary home

Example Scenario — Second Home Purchase

Primary Home Value (Long Island) $650,000
Existing Mortgage $80,000
HECM Proceeds Available ~$310,000
Used to Pay Off Existing Mortgage $80,000
Net Available for Second Home ~$230,000
Monthly Payment on HECM $0
Example based on 68-year-old borrower. Actual proceeds depend on age, interest rates, and appraised value. HECM eliminates existing mortgage payment as well. Contact for a personalized illustration.
Double benefit: The HECM pays off the existing mortgage on your Long Island home (eliminating that monthly payment) AND provides funds for the second home purchase. Your monthly cash flow improves in two ways at once.
Illustrative Example

The Snowbird Strategy

Meet Joe and Maria (fictional). Both 68. Own a $650,000 home in Syosset, Long Island with an $80,000 remaining mortgage. They want a winter condo in Naples, FL — listed at $285,000 — but don't want to sell their Long Island home or raid their IRAs.

✕
Without a HECM Strategy
  • → Withdraw $285,000 from retirement accounts — triggering significant taxes
  • → Or take a traditional mortgage on the condo — adding ~$1,900/month to expenses
  • → Still paying $680/month on existing Long Island mortgage
  • → Combined housing costs: $2,580/month on two properties
  • → Investment portfolio significantly diminished or monthly budget severely strained
✓
With a HECM Strategy
  • → HECM on Long Island home: proceeds pay off $80,000 mortgage first
  • → ~$230,000 remaining — combined with $55,000 from savings to buy Naples condo cash
  • → No monthly mortgage on Long Island home (HECM — no payment required)
  • → No mortgage on Naples condo (purchased with cash)
  • → Retirement accounts stay fully invested. Monthly cash flow actually improves

This is a fictional illustrative example. Actual results depend on home value, age, interest rates, and individual circumstances.

Important Considerations

What to Think About First

Using a HECM to fund a second home is a powerful strategy, but it comes with requirements and considerations worth understanding upfront:

  • Primary residence requirement: You must continue living in your Long Island home as your primary residence. Extended absence (typically more than 12 consecutive months) can trigger loan maturity.
  • Property maintenance obligations: You're required to maintain property taxes, insurance, and upkeep on the primary home. The HECM servicer monitors these obligations.
  • Equity trade-off: You're converting home equity into cash — which means the equity in your Long Island home decreases over time. This is a trade-off that should fit your broader retirement strategy.
  • Second home costs: Property taxes, insurance, HOA fees, and maintenance on the second property are separate expenses to budget for.
  • Coordination matters: This works best when planned in coordination with your overall retirement income and expense strategy — not as an isolated decision.

Dreaming About a Second Home?

Let's run the numbers on your Long Island equity and see what's possible. A 20-minute call will give you a clear picture — no obligation.

Book a Time With Perry

Or call directly: 516-851-0696