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American Advisors Group (AAG) Reverse Mortgage Review

  • Options for lump-sum payouts, monthly payments, lines of credit, or a combination of the three
  • Use your AAG reverse mortgage to purchase a new home
  • Highest reviews in the industry

Founded in 2004, American Advisors Group (AAG) states its mission is to deliver the best financial outcome for seniors with home equity lending solutions. It specializes in traditional home equity conversion mortgages (HECMs, aka reverse mortgages), and proprietary reverse mortgages. 

Finance of America Reverse’s acquisition of AAG makes it one of the largest reverse mortgage providers in the United States; however, it does not do business in Nevada or New York. Many reviews comment on positive customer service experiences. 

Ideal customers of AAG reverse mortgages are those looking for a reputable lender with traditional reverse mortgage lending solutions.

AAG reverse mortgage at a glance 

AAG’s reverse mortgage options include standard (HECMs) and proprietary reverse mortgages. We’ll cover AAG’s reverse mortgages in detail below. 

Loan amountsUp to $4 million
Eligible states48 states, excluding New York and Nevada
FeesOrigination fee, closing costs, servicing fee, mortgage insurance premium
Unique featuresHECM can be used to purchase a new home

How does AAG’s reverse mortgage work?

AAG offers four types of reverse mortgages. The loans are available in 48 states as a traditional HECM with a limit of $1,149,825 or a proprietary reverse mortgage with a $4 million limit.

You can choose how you get your funds:

  • Lump-sum payout. Take cash upfront. 
  • Line of credit. Take cash when you need it, up to a limit. 
  • Term or tenure. Receive monthly payments. 
  • Reverse for purchase. Use a reverse mortgage to buy a new home. 

Before you receive your funds through one of these methods, the lender will determine how much you qualify for, which is very different from traditional mortgage qualification.

How much you’ll qualify for

The amount of home equity you can access is called the principal limit. The limit depends on a number of factors, including your age, interest rate, home value, and home equity. 

The factors that make a reverse mortgage more expensive change how much you can access. For example, higher interest rates mean higher borrowing costs, and you won’t be able to qualify for as much. Along the same lines, the younger you are, the longer the loan has to amortize interest, and you’ll qualify for less. 

It’s best to discuss this amount with a lender to get an idea of where you’ll land with your individual situation. 

What you’ll pay for a reverse mortgage

The fees you’ll pay on a reverse mortgage can be high. Reverse mortgages tend to be more expensive than other types of lending. Some of the fees and costs you’ll come across include:

  • Origination fee: Up to 2% of the first $200,000 and 1% for amounts over $200,000, capped at $6,000. 
  • Reverse mortgage counseling fee: $125 to $200
  • Closing costs: Appraisal, title search, surveys, inspections, recording fees, credit checks, flood zone certification, and other fees. These can be several hundred dollars. 
  • Servicing fees. May have a monthly servicing fee up to $35. 
  • Interest. You’re charged interest on the ballooning loan balance. 
  • Mortgage insurance premium. You’ll pay an upfront mortgage insurance premium as well as an annual premium. The upfront mortgage insurance cost is 2% of the home’s appraised value up to the maximum ($1,149,825). The annual mortgage insurance premium is 0.5% of the loan balance each year.

These costs are added to the loan balance, which could be quite large before you get a payment.

Who’s eligible for an AAG reverse mortgage? 

Home equity conversion mortgages (HECMs) have requirements set by the Federal Housing Administration (FHA). Lenders may also complete a financial assessment of the borrower to determine eligibility for a reverse mortgage. 

Eligible propertiesSingle-family homes, owner-occupied multi-unit properties of 4 units or less, FHA-approved condos, and manufactured homes. 
Minimum age62
Property condition Property must be maintained
Credit scoreNo credit score requirement, but your credit history is evaluated
ResidencyPrincipal residence
Ongoing expensesMust be able to pay for taxes, insurance, HOA fees, and ongoing expenses
EquityAround 50%
Counseling Must complete reverse mortgage counseling session before applying
Financial assessmentProspective borrowers are required to go through a financial assessment with the lender to analyze income against expenses

How do you repay a reverse mortgage from AAG? 

Every borrower must repay a reverse mortgage in full when the loan term ends. This occurs in the following scenarios: 

  • The borrower moves permanently
  • The home is sold
  • The last borrower passes on
  • Taxes or insurance bills aren’t paid 
  • The home isn’t maintained
  • Other loan terms aren’t met

It is common to sell the home to repay the loan. It can also be repaid with savings or another mortgage. Any remaining equity after the reverse mortgage has been paid belongs to the owner of the property. 

If the borrower passes away, their heirs are responsible for repaying the loan.

Pros and cons of AAG’s reverse mortgage

The pros and cons of a reverse mortgage with AAG are typical of reverse mortgages with other companies. The positive aspects include potential improved monthly cash flow, and the negatives include high costs, decreased equity, and potential issues with eligibility.


  • Multiple disbursement options

    Borrowers can receive the funds upfront, in monthly installments, on a credit line, or a combination of any of these options. 

  • High reviews

    AAG generally has positive reviews, especially when it comes to the personal attention given by loan officers to reverse mortgage borrowers. 

  • No monthly payment

    Borrowers don’t need to make payments until the end of the loan. 


  • High costs

    Many upfront costs are involved with a reverse mortgage. You may include them in the loan amount, but in this case, your balance is high from the start. 

  • Decreased equity

    Not making a monthly payment is convenient, but it means your loan balance grows exponentially. As a result, the amount of equity you have in your home decreases as your loan balance increases. 

  • May not qualify for as much as you would expect

    Reverse mortgages don’t grant you access to a large portion of your equity. The amount you qualify for depends more on your age, interest rate, remaining equity, and home value. 

Is AAG a reputable lender?  

SourceCustomer rating (out of 5)Number of reviews
Trustpilot4.7 5,739
Better Business Bureau (BBB)4.74 695
Collected on February 28, 2024.

AAG reviews are among the best for reverse mortgage lenders. Reviewers compliment the personalized experience of working with specific agents as well as excellent communication and follow-through on the part of the company. 

Negative reviews comment on the long process or unexpected costs of getting a home to qualify for a reverse mortgage. 

AAG has an “A” rating from the Better Business Bureau and is accredited, meaning BBB has found that AAG meets its standards for business practices and ethics. 

This rating reflects the BBB’s confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer complaints. Accreditation by the BBB also signifies that the company pays a fee for review and monitoring for compliance to maintain these standards and supports the BBB’s services to the public. 

How to apply for an AAG reverse mortgage 

The process of applying for an AAG reverse mortgage takes some time. Like other reverse mortgage lenders, you can’t apply online, and you must contact a lender to start the process. Here’s what you’re looking at. 

  1. Complete reverse mortgage counseling. Reverse mortgage counseling is required by law. You’ll learn all about the process, your options, the costs, how eligibility works, how to determine affordability, how it will affect your heirs, and your alternatives. 
  2. Consult with a loan officer. They’ll help you understand your loan options, interest rates, and other qualification requirements. 
  3. Apply for a loan. When you apply for a reverse mortgage, expect to submit proof of identification, age, counseling completion, primary residence, and sufficient income for paying taxes, insurance, and maintenance. 
  4. Have your home appraised. You’ll need an appraisal to determine the amount of equity available to lend against. 
  5. Your loan is processed. The lender’s underwriter reviews the information you submitted. They may request more paperwork or property details. 
  6. Close on the loan and get funds. If everything looks correct to the lender, it sends over the final paperwork, and you close on your loan. 

Denial can mean you haven’t met at least one of the requirements. You may not be old enough or have sufficient equity in your home. Ask your lender for the reason so you can try to improve your chances of qualifying in the future. 

How do other home equity products compare to AAG’s reverse mortgage? 

If you’re considering other home equity products, you’ll notice they’re different from a reverse mortgage. A home equity loan or line of credit, for example, likely has lower closing costs and interest rates, but you must make a monthly payment. 

A reverse mortgage makes a payment to you, but the loan balance grows over time and decreases the equity you have in your home.  

Another alternative financing tool to a reverse mortgage is a cash-out refinance. With this option, you replace your mortgage with a new one. Depending on the terms, you could have money refunded to you (the “cash-out”), apply for a longer term (possibly resulting in a lower payment), and qualify for a lower interest rate. 

AAG reverse mortgage FAQ 

How long does it take to receive funds from AAG?

After completing the necessary paperwork for a reverse mortgage with AAG, you must wait for the disbursement of funds. AAG typically processes loans within 30 to 45 days. 

However, delays can occur depending on several factors, such as appraisal turnaround and third-party document collection. We recommend staying in contact with AAG to ensure the whole process runs smoothly.

Does AAG have insurance requirements?

Yes, an AAG reverse mortgage has insurance requirements. Borrowers must maintain an active homeowners insurance policy, which protects the homeowner and AAG against potential damages. 

If your property is located in a flood-risk area, flood insurance is mandatory. The type and amount of insurance required may vary based on the borrower’s property and the terms of the loan agreement.

Can you back out of a reverse mortgage contract?

Yes, you can back out of a reverse mortgage contract. Known as the “right of rescission,” you have three business days after loan closing to reverse the agreement. To do so, you need to send a written notice to AAG.