Reverse Mortgage Lenders

Reverse mortgages have spiked by more than 1,000% in popularity since the turn of the millennium. It’s no wonder since they offer much needed cash to people, especially senior Americans, whose net worth is tied to their home equity. This, however, has also led to a surge in scams, which is why we took it upon ourselves to research reverse mortgage lenders and offer you only reputable options. So, if you’re in the market for this type of deal, scroll down and get the scoop on the best lenders in the US.

The Leading Reverse Mortgage Companies

LendingTree Logo

LendingTree

You Win

This financial comparison site will give you the nitty-gritty aspects regarding what multiple providers on the market are offering so you can compare between them seamlessly. In the 25 years LendingTree has been in business, the company has served more than 100 million customers.

  • Pre-approval Time: Variable
  • Days to Close: Variable
  • Rates: 2.25% to 4.25%
  • APR: 2.43% to 4.43%
  • Minimum Credit Score: 600
  • Maximum debt-to-income ratio requirement: 49%
  • Minimum Down Payment: 0%
  • Loan types: Fixed-rate, Adjustable-rate, High-balance, Jumbo, FHA, VA, USDA, Second mortgage, Reverse mortgage
  • Lender Fees: Yes, variable
  • Online application: Yes
  • Best for whole-market brokering

 

Finance of America Logo

Finance of America

Partner For Life

Finance of America is one of the industry’s leading providers of reverse mortgages courtesy of its variety of products and services. Since 2003 when it was founded, it has garnered a tremendous reputation for its exquisite customer service.

  • Available products: Fixed-rate HECM, adjustable-rate HECM, HECM for purchase, proprietary reverse mortgage
  • Payout options: Lump sum, monthly advance, credit line, combination
  • Rates: Variable
  • APR: Variable
  • Origination fees: $2,500–$6,000
  • Loan limit: $4,000,000
  • Online application: No
  • Customer support: Excellent
  • Availability: Nationwide
  • Best for HECM loans
American Advisor Group Logo

American Advisor Group

Financial peace of mind starts here.

Ever since 2004, AAG has grown to become a world-class reverse mortgage lender. The firm holds a 31.66% of the market and has won multiple awards, including BBB’s Torch Award for Ethics in December 2017.

  • Available products: HECM traditional, HECM for purchase, HECM refinance, proprietary reverse mortgage
  • Payout options: Lump sum, monthly advance, credit line, combination
  • Rates: Variable
  • APR: Variable
  • Origination fees: $2,500–$6,000
  • Loan limit: $6,000,000
  • Online application: No
  • Customer support: Excellent
  • Availability: Nationwide
  • Best for refinancing
Liberty Home Equity Solutions Logo

Liberty Home Equity Solutions

Choose Liberty

As one of the biggest and most respected providers of reverse mortgages in the United States, Liberty Home Equity Solutions is currently present in 49 states and has offered more than $7.5 billion in loans to over 64,000 senior homeowners.

  • Available products: Standard HECM, HECM for purchase, trial proprietary reverse mortgage In some states
  • Payout options: Lump sum, monthly advance, credit line
  • Rates: Variable
  • APR: Variable
  • Origination fees: up to $6,000
  • Loan limit: $2,500,000
  • Online application: Yes
  • Customer support: Excellent
  • Availability: 49 states
  • Best for senior homeowners
Longbridge Financial Logo

Longbridge Financial

Longbridge at your service.

Since 2012, this company has grown an excellent reputation among consumers for its highly-rated, one-of-a-kind service. Longbridge Financial has an Ivy League-level leadership and has secured investments from Federal Reserve veterans like Alicia M. Munnell.

  • Available products: Standard HECM, HECM for purchase, proprietary Platinum mortgage, Gold program
  • Payout options: Lump sum, monthly advance, credit line, combination 
  • Rates: Variable
  • APR: Variable
  • Origination fees: up to $6,000
  • Loan limit: $4,000,000
  • Online application: No
  • Customer support: Excellent
  • Availability: 47 states
  • Best for low mortgage rates
Reverse Mortgage Funding Logo

Reverse Mortgage Funding

Reverse Mortgage Funding is Here for You

This newcomer to the reverse mortgage scene has quickly earned the respect of consumers and competitors alike. It is an active member of NRMLA and is endorsed by the American Bankers Association.

  • Available products: Standard HECM, HECM for purchase, Equity Elite proprietary mortgage, Equity Elite Zero proprietary mortgage
  • Payout options: Lump sum, monthly advance, line of credit
  • Rates: Variable
  • APR: Variable
  • Origination fees: $2,500–6,000
  • Loan limit: $6,000,000
  • Online application: No
  • Customer support: Excellent
  • Availability: Nationwide
  • Best for nationwide coverage
Homebridge Financial Services Logo

Homebridge Financial Services

Easy, Simple and Trusted Home Loan Financing

This financial provider was founded in 1989 and their business differentiates itself from the competition by focusing on “generational lending,” meaning, they offer loans at any stage of a person’s life, from early adulthood to retirement and old age.

  • Available products: Standard HECM, HECM for purchase
  • Payout options: Lump sum, monthly advance, line of credit
  • Rates: Variable
  • APR: Variable
  • Origination fees: up to $6,000
  • Loan limit: N/A
  • Online application: No
  • Customer support: Excellent
  • Availability: Nationwide
  • Best for finding loan originator

What Makes Great Reverse Mortgage Lenders

We’ve made a short list of factors to help you figure out how to separate the wheat from the chaff when looking for a reverse mortgage lender

Product Types of Reverse Mortgages Offered

Those looking to lock down the best reverse mortgage deals must first be informed about the different types of loans, to get the one that suits them best. 

Single-Purpose Reverse Mortgage

This one is the least expensive option of the bunch. It is offered by some state, local government agencies, or non-profit organizations. The major downside of this loan type is that it is not available everywhere. Its specifications are detailed in its name: the loan can only be used for one purpose declared beforehand (paying off debt, taxes, renovations, etc).

Property Reverse Mortgages

You will find this deal at the best reverse mortgage lenders in your area. They are private loans backed by companies that develop them. The amount you get by accessing this product depends heavily on the value of your property. 

Home Equity Conversion Mortgages (HECMs)

These are federally insured products that are backed by the Department of Housing and Urban Development. A plus to them is that borrowers can use the cash for any purpose they want or need. The downside when choosing a HECM consists of high upfront costs.

Payout Options

When you get a deal from one of the reverse mortgage companies, you have the option to receive the cash in several ways: as a lump sum, monthly advance, credit line, or combination of all three. 

A lump sum allows you to withdraw the whole amount at once, but that might make it lower by comparison. Also, the costs in general are higher when you get a lump sum as you will be paying interest and fees on the entire amount at closing. The risk is also higher because the borrower may outlive the funds, plus over long periods, inflation can eat out a considerable part of them.

With a monthly payout reverse mortgage, you’ll be paying interest to the reverse mortgage lenders only on the cash you drew so far and may combine it with a line of credit. Also, you may choose between getting payments for a preset amount of months or for as long as you maintain the house. 

The credit line against your home’s equity can be combined with a monthly payout. It also has a growth feature that allows you to withdraw more credit at once if you do not take cash out all the time. 

Rates

If you choose the lump sum version as a way of receiving the cash then you will pay a higher interest rate to the reverse mortgage lenders as you’ll have to cover it all at once, so it is the option that brings the highest overall costs. 

Interest rates are always changing depending on the economy and governmental action. In addition to the base rates, lenders may add margins of one to three percentage points. We have picked only the lenders with the best reverse mortgage rates to fit into our selection. 

APR

The interest rate determines, you guessed it, how much you pay in interest. On the other hand, the APR includes the interest as well as any additional fees or expenses you pay on top of the reverse mortgage companies

Fees

An important step in measuring up what is the best reverse mortgage is looking at the fees, as these can make or break a good deal. 

What you must expect when budgeting for this loan are the initial insurance premiums, third-party fees for closing costs, a levy for loan origination (maximum $6,000), and the loan servicing cost. 

Besides the mandatory insurance and other fees charged by reverse mortgage lenders, if you go with a HECM product, you will most likely need to pay up a counseling fee to a third-party counselor approved by the DHUD. Another thing you must plan for is the appraisal cost which averages somewhere around $300 to $500. 

Besides what borrowers pay upfront, there are also ongoing costs to account for. These consist of annual insurance premiums, long-term property costs, and even an ongoing monthly servicing fee which some lenders, unfortunately, do ask for. 

Online Application

Although they have been the group to adapt the slowest to the constant digitization of our society, senior citizens stand to benefit most as they have different needs than younger people. Their mobility may be impaired or they may find the whole reverse mortgage process to be too consuming for them. Therefore, online application would be a given with the best-rated reverse mortgage companies

Customer Support

While important for all generations, customer support is absolutely essential for senior citizens, especially if they struggle with applying online. As with anything so complex and important as a reverse mortgage, the assistance staff must be top-notch, to deliver the best reverse mortgage company experience. 

How to Get a Reverse Mortgage – The Process Explained

To further aid you in your quest for reputable reverse mortgage companies, we’ve prepared a short step-by-step description of what the process looks like. 

Check Eligibility

Before the whole process begins, a person must know if they even fit the requirements. A borrower must be at least 62 years old, use their primary residence, have the home paid off or at least have a small remaining mortgage on it, be able to afford all future housing costs, and not have any federal debt delinquencies.

Initial Application

Now that you’ve checked and know for sure you are eligible, the following step is submitting the initial application to the company you’d like to work with. Of course, you must first do your due diligence and research to find the one company that suits your needs best. We hope that our list of the top reverse mortgage companies will come in handy. 

Counseling

The next step is getting counseling from a certified professional. Even though the loan has been approved, the lender is not allowed to finalize it until you also go through this step. You’ll get a certificate which will then allow you to progress further in the process. It’s good to know that you may also choose to complete this counseling before applying. 

Appraisal

After you get these tasks done, you will have to get an appraisal for the property. This must be conducted by an FHA-approved professional and the whole procedure has to follow the FHA-specific format. 

Underwriting

The next thing reverse mortgage companies require is the confirmation of the applicant’s ownership of the property by conducting a title search and purchasing title insurance. The lender will work with the borrower to clear any issues that they might have like trusts problems, unpaid liens against the title, bankruptcies, etc. Then, the underwriting should be over and the application declared “clear to close”.

Closing

Together with the lender, the borrower sets a date for the papers to be signed in the presence of an attorney or a notary. For the applicant, this is the final chance to look over the documents. After everything is signed, there are three more days in which the borrower has a “right of rescission” period, when the loan may still be canceled. After the waiting period, the applicant will receive a check from the chosen partner, most likely by overnight mail.

Reviews of the Leading Reverse Mortgage Companies

LendingTree

While Lending Tree isn’t a direct lender, it still deserves a spot on our list, thanks to its versatility of offerings. The variety of reverse mortgage options guarantees many benefits, especially regarding flexibility when comparing it to traditional firms.

Pros:

Cons:

The biggest advantage of dealing Lending Tree in lieu of an actual reverse mortgage broker is the wide spectrum of offers that you’ll get.

In addition to supporting multiple reverse mortgage lenders, the platform further boasts some great rates which ensure you’ll get a good deal that won’t choke you out with interest. The lack of lender fees further makes getting a reverse mortgage here even more advantageous. It also feels incredible using a service with so much care for the customer, shown in awesome assistance staff and its practices.

Applying with any of the reverse mortgage lenders is smooth and easy since everything is available online from anywhere, anytime. And since we’re talking about availability, no matter where you are located in the United States, there are Lending Tree offers that you may take and use as they are working with many lenders with national operations.

Unfortunately, it’s not all positives. Sometimes, they do not offer enough upfront information to the customer, which can really lengthen the research and bog down the process a bit. 

Finance of America Reverse

This company has, hands down, the best customer service from all the reverse mortgage lenders we’ve come across. It is focused on face-to-face interactions with experienced specialists that are working tirelessly to help you make the choice that best suits your needs.

Pros:

Cons:

Finance of America Reverse brings to the table a lot of products and payout options in its attempt to satisfy any and all consumers. Also, their team is formed of only experienced loan originators looking to ensure extremely high customer satisfaction brought by one of the top reverse mortgage lenders.

One big plus of this firm is that it offers highly customizable loans and that its practices are somewhat flexible, willing to accommodate a great variety of needs.

However, what Finance of America Reverse lacks is a way to apply online. This lender also charges fees, which is disadvantageous to consumers.

American Advisor Group

American Advisor Group is the largest reverse mortgage provider in the United States and has the best reputation among consumers, as well as in the industry, and its many awards are there to prove it. 

Pros:

Cons:

This reverse mortgage powerhouse offers an extensive list of loans and gives consumers many payout options. What makes it stand out among other reverse mortgage lenders is that it offers Jumbo reverse mortgages which have higher limits and are great for those with a lot of home equity.

Be it either in a lump sum, monthly advance, credit line, or combination of all those, customers will find what they are looking for at American Advisor Group.

Another advantageous part of working with AAG consists of the customer assistance services which are exquisite and guarantee not only a pleasant experience but also a smooth overall process. Americans from all around the country may enjoy these as, like other top reverse mortgage lenders, this company operates all over the United States.

What’s not so good about AAG are the fees they charge, even though they are not higher than the industry standard. Customers could also do with more easily available information, such as specific rates and APRs. Finally, it would have been great to also have online application available.

Liberty Home Equity Solutions

Liberty Home Equity Solutions was established in 2004 and has since sought to provide top services. It definitely shows as it quickly became one of the best reverse mortgage companies as now it has the A+ rating from BBB.

Pros:

Cons:

The company offers all the major types of products that consumers expect, as well as a lot of payout options, bringing to its customers a wide array of choices. Moreover, the loan limit is much higher than what other providers are offering.

The firm is also one of the few among reverse mortgage providers with online application, allowing consumers to use a more facile and safe system of shopping for a deal. To add to it, Liberty has a great support service which is constantly recognized with the highest merits in the industry.

On the other hand, we would like to see more transparency from this company and no more fees. It also lacks nationwide coverage.

Longbridge Financial

Although Longbridge is not one of the largest companies in the industry when it comes to the number of closed deals, it can consistently be found at the height of reverse mortgage reviews, due to its excellent service and dedication to each customer. 

Pros:

Cons:

Longbridge Financial has a more diverse offer of products than other competing reverse mortgage companies, including Jumbo reverse mortgage. It also provides customers with all the possible payout options. The firm also boasts one of the highest loan limits in the industry, offering not only tremendous flexibility to consumers but also great deals overall.

The unpleasant parts of working with this company consist of its lack of transparency regarding rates and APRs, plus the lack of possibility to apply online for deals. The lender is not available all around the country either.

Reverse Mortgage Funding

Reverse Mortgage Funding is here to prove that stellar services may be offered by a newcomer reverse mortgage lender, too. Their great offer of varied products, great customer support, and nationwide coverage is tough to beat even by well-established companies. 

Pros:

Cons:

As mentioned before, this company is a great option for those looking to browse a wide range of products and have the choice between many payout options. Among reverse mortgage companies, this one has relatively small fees, although it would have been perfect if there were no such additional costs. Reverse Mortgage Funding has high loan limits and their products can be accessed all around the country.

Unfortunately, this company isn’t very transparent when it comes to the rates and APRs practiced and we would have liked if Reverse Mortgage Funding offered online applications.

Homebridge Financial Services Review

This financial institution doesn’t offer just reverse mortgages but also refinancing credit for home buyers, and renovations. In 2016 it acquired Prospect Mortgage and became one of the biggest lenders in the United States.

Pros:

Cons:

Even if this company doesn’t offer as many products as others on the list, it has a lot of payout options. What differentiates Homebridge Financial Services from other reverse mortgage brokers and lenders is that they do not have any upper limit on their offered loans.

Their customer support is excellent, which is exactly what those looking to get this type of loan need, and the firm has nationwide operations.

On the other hand, the company isn’t as transparent as it could be, especially when it comes to rates and APRs. Moreover, it charges lender fees and doesn’t offer the possibility to apply online.

FAQ

Which is better, reverse mortgage or refinance?

Although a reverse mortgage is easier to get, a refinance has the benefit of also being able to keep the property and the equity you have in it. Overall, which is best depends on your personal situation and needs. In any case, it’s important to work only with either the best-rated reverse mortgage companies or the leading mortgage refinance companies to ensure a good deal. 

Who owns the house in a reverse mortgage?

The title to the property remains in the owner’s name even if they get a reverse mortgage. Only when they pass away or fail to make payments does the bank have the option to seize it.

How long does a reverse mortgage last?

This loan is only accessible by senior citizens 62 and over. The loan becomes due when the person moves from the house, sells it, or when they die. 

How do you pay back a reverse mortgage?

The easiest and most commonly-used way to pay off a reverse mortgage is by selling the home you took the loan against. Of course, you can use funds from other sources, as well, if you have them. 

Does a reverse mortgage hurt your credit?

Not at all. In fact, reverse mortgage brokers or lenders do not even report their transactions to credit agencies. Also, as you don’t make any monthly payments when you get this loan type, you don’t even have the chance to be late on them. 

Is there an age limit on reverse mortgages?

To be eligible for this deal one must be at least 62 years old. This loan was created to help seniors who age in their homes and might need assistance for retiring. There is no upper age limit. 

Can you be denied a reverse mortgage?

Sometimes the assessment may suggest the borrower will not be able to make their home-related payments and convince the lender to reject their request. When the borrower doesn’t pay the property taxes or insurance, they could be evicted from their home and the house would go into foreclosure. 

Who should not get a reverse mortgage?

You shouldn’t get a loan even from the best reverse mortgage lenders if you plan on leaving your property to your heirs or if you intend to use governmental assistance benefits for retiring. 

What happens if you outlive a reverse mortgage?

A reverse mortgage doesn’t have a set due date, but instead, the balance must be paid when you sell the house, move out, or pass away, no matter how far into the future either of those events occurs. 

What happens when you walk away from a reverse mortgage?

For the borrower, it’s impossible to walk away from this loan as it will be due when they die. As for the heir, they are not held responsible for the loan and may walk away from it, although they can also choose to keep the property, along with the debt.

What happens if you don’t pay back a reverse mortgage?

If you default on such a loan your home will go into foreclosure, although reputable reverse mortgage companies will try to work with you for a solution first.

Can I sell my house if I have a reverse mortgage?

Yes, although the loan becomes due when you do so and you must pay back any remaining balance. 

Does reverse mortgage affect social security?

The proceeds from a reverse mortgage do not affect Social Security or Medicare in any way, but other benefits such as SSI or Medicaid may be distorted. 

Why don’t banks recommend reverse mortgages?

Even the best reverse mortgage companies will agree that this deal isn’t for everyone. As the loan balance increases over time due to interest plus fee accumulation and equity is used, owners will have fewer assets to leave to their heirs.

What are the drawbacks of a reverse mortgage?

The cons of this practice consist of the fact that you could lose your home to foreclosure, your heirs will inherit less, your other retirement benefits may be impacted, and you will have to pay fees and interest. 

Is reverse mortgage a ripoff?

The top-rated reverse mortgage providers are offering legit financing and great deals. Although it has its benefits and downsides, a reverse mortgage is not a ripoff. However, as with any financial service, beware of companies that are not operating fairly and according to the law. 

How much money do you really get from a reverse mortgage?

In general, the maximum that you can borrow is 80% of the home’s equity, based on its appraised value. Also, the sum cannot exceed $679,650.

Is a reverse mortgage counted as income?

Reverse mortgage payments aren’t taxable as they are considered proceeds and not income. The lender pays the borrower, either in the form of a lump sum, monthly advance, credit line, or combination of the above. 

What’s the minimum credit score for a reverse mortgage?

There is no minimum credit score requirement for a reverse mortgage, although lenders do care about any delinquency on federal debt. 

What are the 3 types of reverse mortgages?

The best-rated reverse mortgage lenders offer single purpose (offered by state and local government agencies plus non-profits), proprietary reverse mortgages which are private loans, and federally insured reverse mortgages. 

What are the hidden costs of a reverse mortgage?

When you get this loan type, remember that you must pay an origination fee (which is capped at $6,000), and the real estate closing costs (appraisal, title search, surveys, inspections, recording fees, mortgage taxes, credit checks, and others).

What is the least expensive reverse mortgage?

The least expensive type of reverse mortgage is a single-purpose one, which is offered by state, local, and nonprofit agencies. These are federally insured and backed by the DHUD. 

Are there monthly payments on a reverse mortgage?

Top-rated reverse mortgage lenders will tell you: there are no monthly installments when getting this loan type, but instead the whole balance is due when the borrower moves permanently, sells the house, or passes away. 

Can you take a lump sum from a reverse mortgage?

Yes, you can get all the borrowed cash at once, or you may choose to instead receive monthly installments or initiate a line of credit. 

Can you pay back a reverse mortgage early?

Any of the top-rated reverse mortgage companies will allow you to pay it off early. Moreover, reverse mortgages are backed by the federal government program Home Equity Conversion Mortgage program, which means there is no early payoff penalty. 

Who benefits most from a reverse mortgage?

Those who do not have other means to retire and do not have a family to aid them and to which they can leave their property after their passing will probably find a reverse mortgage to be the best solution for them. 

Are heirs responsible for reverse mortgage debt?

When the borrower dies the debt becomes due. The heir has the choice to carry that loan or turn it over to satisfy the debt. 

How long do heirs have to pay off a reverse mortgage?

When working with reverse mortgage lenders, heirs have 30 days after the borrower passes away to decide if they want to keep the home or not. If they decide to pay off the reverse mortgage, they must do it in a timeframe of six months. 

Can a family member take over a reverse mortgage?

After the borrower passes away, an heir may take over the house if they purchase it for 95% of its appraisal value.