Best Reverse Mortgage Companies

If you’re a senior who is 62 or older and owns a home, a reverse mortgage can help convert some of your equity to cash. Reverse mortgages don’t require you to make monthly payments as long as you live in the home. You might consider this option if you already live in your “retirement home” and want to create an additional income stream. 

We’ve compiled a list of our recommended banks and brokers for reverse mortgages and tips on getting one as a senior. 

The best reverse mortgage companies

These four companies offer superior services, diverse loans, and top-tier customer service. All four provide a Federal Housing Administration (FHA)-insured home equity conversion mortgage (HECM) and other options. 

None of the companies disclose their interest rates, but we gathered other important details to help you decide among them.

• Best customer reviews: Longbridge Financial
• Best for flexible options: Finance of America Reverse
• Best established brand: Mutual of Omaha
• Best for fast closing: Fairway Independent Mortgage Corp.

Longbridge Financial

Best customer reviews

4.8 _/5

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Why it’s one of the best

Longbridge Financial is known for providing highly personalized service, making it an excellent choice for seniors seeking a tailored reverse mortgage experience. 

Its commitment to understanding and addressing individual client needs is reflected in its stellar customer feedback, with a 4.7 Trustpilot rating from 968 reviews and an A+ rating from the Better Business Bureau (as of September 2024). Longbridge’s competitive terms and diverse loan products make its reverse mortgages affordable and accessible, placing it on the list of best reverse mortgage companies in Texas.

• Individualized approach to service
• Competitive terms
• Wide variety of loans
• Excellent customer service ratings (Trustpilot 4.9, BBB A+)

• Limited physical branches for in-person service
• May not offer as many loan options as larger providers
• Loan processing times can vary depending on location

Availability	Nationwide (select states for jumbo)
Types of reverse mortgages offered	HECM, HECM for purchase, jumbo
Minimum equity	50%
Loan amounts	Up to $4 million

Finance of America Reverse

Best for flexible options

4.5 _/5

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Why it’s one of the best

Finance of America Reverse is best known for offering a broad range of reverse mortgage products tailored to various homeowners’ needs. Whether you’re seeking a home equity conversion mortgage (HECM) or a more specialized option, Finance of America Reverse ensures flexibility for different financial goals. 

The company also makes it easy for homeowners to apply through its convenient online tools, enhancing accessibility. Backed by positive customer reviews and a strong reputation for service, Finance of America Reverse continues to be a top choice in the industry. In addition, its acquisition of American Advisors Group (AAG) has expanded its offerings, making it a formidable competitor to other top reverse mortgage companies like One Reverse Mortgage.

• Wide selection of reverse mortgage options
• Convenient online tools for easy application
• Positive customer reviews

• Limited physical branches for in-person support
• Some specialized products may not be available in all regions
• Customer service response times can vary

Availability	Nationwide
Types of reverse mortgages offered	HECM, jumbo, line of credit
Minimum equity	50%

Mutual of Omaha 

Best established brand

4.5 _/5

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Why it’s one of the best

Mutual of Omaha has been in business for over 100 years, offering trusted financial services with a commitment to customer satisfaction. Its reverse mortgage products allow homeowners to unlock their home equity while maintaining flexibility in repayment options. With a strong reputation, excellent customer service, and a century of experience, Mutual of Omaha stands out in the competitive reverse mortgage market.

• Over 100 years in business
• Excellent customer service ratings
• Strong brand recognition and trust
• Offers comprehensive educational resources for borrowers

• Does not disclose rates upfront, limiting transparency
• Not available in New York
• Fewer online tools compared to some competitors

Availability	49 states (all but NY)
Types of reverse mortgages offered	HECM, HECM for Purchase, HomeSafe Reverse Mortgage, Refinance Loan
Minimum equity	Any amount
Loan amounts	Up to $4 million

Fairway Independent Mortgage Corporation

Best for fast closing

4.1 _/5

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Why it’s one of the best

Fairway Independent Mortgage Corporation stands out for its fast closing times, making it an excellent choice for homeowners who want to complete their reverse mortgage process quickly. 

Fairway’s reputation for efficiency helps applicants close their reverse mortgages faster than many of its competitors. Alongside speed, Fairway offers various reverse mortgage products to cater to various borrower needs. Exceptional customer service further enhances the overall experience, ensuring a smooth and stress-free process for its clients.

• Fast application-to-closing times
• Diverse reverse mortgage products
• Excellent customer service

• Limited online tools for application management
• Some products may have availability restrictions depending on the location
• May not provide as much educational content as competitors

Availability	Nationwide
Types of reverse mortgages offered	HECM, HECM for purchase, jumbo
Minimum equity	50%
Loan amounts	Up to $4 million

How does a reverse mortgage work? 

A reverse mortgage allows homeowners to leverage their equity for cash, similar to a home equity loan or home equity line of credit (HELOC). 

But these are the important differences: 

• Reverse mortgages typically require the homeowner to have little to no mortgage debt. 
• Homeowners can withdraw some of their equity in cash without making monthly payments. The equity needed for a reverse mortgage varies by lender but is generally at least 50% of your home’s value. 
• Interest and fees accumulate while the reverse mortgage balance is outstanding. 
• Repayment of the outstanding balance is due when the homeowner sells the home or continues to own it, but it’s no longer their primary residence. 

The homeowner must keep up with property taxes and pay for homeowners insurance. They must also handle regular maintenance on the property to keep it in good condition. 

Who repays a reverse mortgage? 

Repayment can depend on the situation. 

Situation	Repayment
Homeowner sells home	Homeowner pays from the sale proceeds
Homeowner permanently moves into nursing facility (still owns home)	Homeowner pays balance in full (unless spouse remains in home and is a co-borrower on the reverse mortgage)
Homeowner passes away	Heirs pay the balance

Our expert advises: Common misconceptions

Erin Kinkade

CFP®

Fees are associated with a reverse mortgage even though the borrower doesn’t need to make a monthly mortgage payment. Also, the remaining mortgage balance is not forgiven at the death of the borrower or the second to die. The mortgage must be repaid by selling the home or a lump-sum payment. If the housing market takes a dip and the value of the home is lower than the outstanding mortgage, the surviving heirs may need to pay the difference. We recommend consulting with a financial professional who is well-versed in the considerations of reverse mortgages before you move forward. I also recommend bringing the family members and other heirs who could be affected into the discussion so they understand—although they don’t need to be the ones making the final decision.

Types of reverse mortgages 

Homeowners seeking a reverse mortgage have options. One type of reverse mortgage may suit your needs better than another, depending on your reasons for tapping into your equity and financial situation. 

Reverse mortgage type	How it works
HECM	Most common type of reverse mortgage; federally insured (by FHA)
HECM for purchase	Homebuyers buy a new home and obtain a reverse mortgage in the same transaction; requires larger down payment (as much as 50%)
Jumbo (or proprietary) reverse mortgage	Homeowners convert equity to cash at higher levels than traditional reverse mortgage
Single-purpose reverse mortgage	Not insured by the federal government; offered by state and local governments or nonprofits; to be used only for a specific purpose (e.g., home renovation)

How to choose the best reverse mortgage for you 

Finding the best reverse mortgage option starts with evaluating what you need and which type of reverse mortgage you’re most likely to qualify for. Here are some common types of reverse mortgages and their typical eligibility requirements:

• HECM: Homeowners 62-plus who own their homes outright or have a low mortgage balance and sufficient financial resources for insurance, taxes, and maintenance
• HECM for purchase: Those planning to buy a home and who have sufficient cash to meet the down payment requirement
• Jumbo (aka proprietary) reverse mortgage: Homeowners with high-value homes who want access to large cash amounts
• Single-purpose reverse mortgage: Homeowners who need cash and plan to use the proceeds for a single approved purpose

When choosing the best reverse mortgage bank or broker, consider these questions: 

• How much money can I get from a reverse mortgage? 
• Do I own a high-value home? 
• What eligibility requirements must I meet? 
• What interest rate range do I want? 
• How can I access my equity?
• What will I use the proceeds for? 
• Will I need to pay any fees out of pocket at closing? 

The amount you can withdraw depends on your age, home value, and interest rate. In 2024, the maximum HECM limit is $1,149,825, but your actual reverse mortgage amount may be much lower. 

Depending on your payout option, reverse mortgages may have fixed or variable rates. You can get payouts via:

• A lump sum (fixed rate)
• A revolving line of credit (variable rate)
• Monthly or annuitized payments (variable rate)

Some lenders may offer the option to combine a revolving credit line with monthly or annuitized payments. When comparing reverse mortgage companies, looking at the above can help you narrow down the options to find one best suited to your needs.

Our expert’s advice: How to manage the proceeds from a reverse mortgage

Erin Kinkade

CFP®

I recommend engaging a financial professional or trusted individual to work with you to create a budget and financial plan. Identify the specific purposes for the proceeds, and follow the plan so you don’t use the funds for other unnecessary or frivolous purposes.

How to get a reverse mortgage 

If you’re ready to take out a reverse mortgage, you must take several steps. Here’s what to expect once you’ve chosen a reverse mortgage company. 

1. Meet with a reverse mortgage counselor. Federal guidelines require homeowners interested in a reverse mortgage to meet with a Department of Housing and Urban Development (HUD)-approved counselor before applying. This ensures you fully understand what you agree to with a reverse mortgage. 
2. Complete the application. Once you complete counseling, you can apply for a reverse mortgage. You must provide a counseling completion certificate, copies of your most recent mortgage statement if you still owe a balance, a copy of your deed or title if you own the home, property tax bills, a copy of your homeowner’s insurance policy, bank account statements, and proof of income if you’re still working. 
3. Get an appraisal. The reverse mortgage company needs to know what your home is worth to decide how much of your equity you can withdraw. It should schedule a professional appraisal through an independent agency. You’ll pay the appraisal fee, which can cost several hundred dollars. 
4. Close the reverse mortgage. If you’re approved, the final steps are closing and disbursement. You must sign the required paperwork and tell the reverse mortgage company where to send the proceeds if you choose a lump sum payout. 

Most reverse mortgages don’t rely on credit scores for approval, but the reverse mortgage company will likely perform a hard check of your credit to ensure you have no federal tax liens or delinquent debts. You must consent to the credit check when you submit your application. 

From start to finish, the reverse mortgage process typically takes 30 to 45 days. It may take longer if you hit a snag in underwriting or delay completing the appraisal. 

FAQ

How is a reverse mortgage repaid?

Repayment on a reverse mortgage is required after the homeowner passes away, sells the property, or moves out permanently. When the loan becomes due, the homeowner or their estate can sell the home and use the sales proceeds to repay the reverse mortgage. 

The remaining equity is distributed to the homeowner or their heirs. If the homeowner has no heirs, the lender will sell the property to recover the loan balance. Any remaining equity after the sale and loan repayment will become part of the homeowner’s estate and will be distributed according to their will or state law.

If the homeowner has heirs, they may keep the home and repay the reverse mortgage out of pocket. This option allows the heirs to retain ownership of the property without selling it.

Should I add my spouse as a co-borrower?

If you’re married, you must decide whether to list your spouse as a co-borrower. The advantage of adding your spouse as a co-borrower is that they can stay in the home if you pass away or move out permanently without repaying the reverse mortgage immediately. Co-borrowers must be 62, so if your spouse is younger, they may be unable to be added as a co-borrower. 

If your spouse is not a co-borrower and you pass away or move out permanently, they will likely need to repay the reverse mortgage if they wish to continue living in the home. If they cannot repay the loan, they may be required to sell the home to satisfy the debt.

How can you prepare your family to inherit a home with a reverse mortgage?

You can prepare your family for inheriting a home with a reverse mortgage by having open and honest conversations about how they may be affected. Ensure your heirs understand that upon your passing, they’ll need to decide whether to keep the home by repaying the reverse mortgage balance or sell the property to satisfy the loan. 

Share information about the current reverse mortgage balance, the home’s estimated value, and any remaining equity they may inherit.

You can help your family navigate the process smoothly by organizing important documents related to the reverse mortgage ahead of time. This includes the lender’s loan agreement, statements, and contact information. 

Create a list of tasks they’ll need to complete, like notifying the lender of your passing, deciding whether to keep or sell the home, communicating with the lender about their intentions and timelines, and exploring financing options if they wish to keep the home.

What happens to a reverse mortgage if you move to a nursing home?

If you have a reverse mortgage and need to move into a nursing home, the impact on your loan depends on the length of your stay. For short stays under 12 months, your reverse mortgage continues as normal. However, if you stay for 12 months or more, you must repay the loan. 

The only exceptions are if you have a co-borrower still living in the home (in this case, your loan will go on unchanged) or if your spouse is an eligible non-borrowing spouse (they can remain in the home without paying off the loan, but they won’t get any more money from the reverse mortgage).

What are the costs of a reverse mortgage?

The typical costed and reverse mortgage fees are:

• Origination fees: Lenders charge a fee to set up and process the reverse mortgage. The FHA caps this fee at $2,500 if your home is valued at less than $200,000. For homes worth more, lenders can charge 2% of the first $200,000 and 1% over $200,000, up to a maximum of $6,000.
• Counseling fee: You must meet with a HUD counselor before you can get a reverse mortgage. This fee is usually around $125, paid directly to the counseling agency.
• Mortgage Insurance Premiums (MIP): For an FHA-insured HECM, an upfront MIP of 2% of the home’s appraised value or the FHA lending limit (whichever is less) is charged, and an annual MIP of 0.5% of the outstanding loan balance accrues over time.
• Appraisal fees: An appraisal is required to determine the home’s value, and the borrower pays for it. The fee usually ranges from $400 to $600.
• Closing costs: These include charges for services necessary to close the loan, such as title search, title insurance, surveys, inspections, recording fees, and credit checks. These costs vary by lender.
• Servicing fees: Some lenders charge monthly servicing fees, usually around $35, to manage the loan over its lifetime. 
• Interest: Reverse mortgages accrue over time, adding to the loan balance. Depending on the loan terms, interest rates can be fixed or variable.

It’s important to review and understand all potential costs before proceeding with a reverse mortgage because they influence the amount of money available from the loan and its total cost over time.

What are the risks of a reverse mortgage?

A reverse mortgage can be useful for seniors needing additional income, but it comes with risks. Some risks include potentially high fees and the chance of outliving the loan income. However, one of the biggest risks is the possibility of foreclosing on a reverse mortgage if you fail to meet your loan obligations. 

This can happen if you stop paying property taxes, allow your home insurance to lapse, move out of the home for at least 12 months, neglect home maintenance, or fall behind on HOA or condo fees. You can avoid foreclosure by staying current with insurance, fees, and home maintenance and letting your lender know if you have a change in residence.

How we selected the best reverse mortgage companies

Since 2020, LendEDU has evaluated mortgage companies to help readers find the best mortgages. Our latest analysis reviewed 85 data points from 6 lenders and financial institutions, with 17 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.