Many longtime homeowners have grown to love their homes and want to remain living there. Unfortunately, senior and retired homeowners may need to access the value in their homes to meet their financial needs.
For many people, a house is their biggest asset. To access the funds, you can sell it.
However, thanks to financial tools like reverse mortgages, you don’t necessarily have to sell your home to access its equity for other needs.
Reverse mortgages help retirees tap the value out of their homes without having to move. The best reverse mortgage lenders can help homeowners tap into home equity, say, for a down payment to purchase a new home.
Reverse mortgages do have some drawbacks, but they are not necessarily “last resort” options. They can be a healthy financial choice. Before you take out a reverse mortgage, review your financial situation and determine if it’s right for you.
Be sure to compare the best reverse mortgage lenders below before making a decision.
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Best Reverse Mortgage Lenders Comparison
Use the following table to compare some of the top reverse mortgage lenders in the industry. Read on below the table to see our full reviews of each company.
Note: LendEDU is not compensated by any of the following companies.
Compare Reverse Mortgage Lenders
- Make the most out of retirement with our new reverse mortgage solution
- Three types of Home Equity Conversion Mortgages available
- Borrowers must be at least 62 years old with no delinquent federal debt
- Service, expertise, and transparency
- Unique customer satisfaction guarantee
- Loan officers are your personal guide through the process
- Dramatically reduce monthly payments
- Consolidate debt and free up funds
- Enjoy retirement with less financial worry
- Flexible disbursement options
- Stay in the home without making monthly mortgage payments
- Pay off an existing mortgage with the funds from a reverse mortgage
- Lower your mortgage payment
- Reduce your loan term or consolidate your debt
- Fast and easy – in-house underwriting, processing, closing, and decision making
- The No. 1 HECM lender in the nation
- Offer a jumbo reverse mortgage option
- 97% Customer satisfaction rating from client surveys
- Providing FHA-insured reverse mortgages
- True online quotes including real-time rate, APR, and actual loan terms
- Compare competitive rates and lower costs
- Pay off your mortgage and increase cash flow
- Fund unexpected expenses or portfolio gaps with tax-free income
- Move to a new home without monthly mortgage payments
Best Reverse Mortgage Companies
Click on one of the companies below to review their reverse mortgage options.
- Reverse Mortgage Funding
- American Advisors Group
- One Reverse Mortgage
- Finance of America Reverse
- HomeBridge Financial Services
- All Reverse Mortgage
- FBC Mortgage
- Longbridge Financial
1) Reverse Mortgage Funding
Editorial Rating: 5/5
Reverse Mortgage Funding provides flexible reverse mortgages for homeowners. The company offers a number of different options to help you purchase a new home or access the equity in your current home.
Reverse Mortgage Funding also offers a refinance reverse mortgage that allows you to make payments toward your mortgage each month rather than putting off your payments until the property changes owners. You can choose how little or how much to pay. This can be beneficial if you’re concerned about a reverse mortgage eroding equity in your home.
Borrowers can receive a steady stream of monthly payments or a line of credit. You can use one of Reverse Mortgage Funding’s mortgages to purchase a new home. This is one way that seniors can either move closer to family or downsize to a smaller house and get a reverse mortgage.
You can also choose how you take the money out. Reverse Mortgage Funding’s Equity Edge Reverse Mortgage is for homes worth more than $700,000. With this option, you only need to be 60 to qualify. This reverse mortgage could allow you to tap into more equity than traditional reverse mortgages. It may have lower upfront costs and fees but could have higher interest rates. The maximum lending limit is $6 million. Condos often qualify for this loan, but they must be FHA approved.
Reverse Mortgage Funding also offers federally insured FHA loans. Their HECM Annual Adjustable Mortgage has an interest rate that adjusts once per year with a cap that ensures it won’t surge if interest rates skyrocket. There is also a cap on how much your rate can increase annually. With this loan, you can choose to take funds as a lump sum, monthly advance, a line of credit, or any combination of these.
Other options include an HECM with a monthly adjustable rate and a fixed rate. With the fixed-rate option, you will be required to take all the money in a lump sum.
With HECM loans, you need to live in a single-family home, or in a two to four-unit property, a townhouse, a condo, or a manufactured home. You must also show that you can meet the financial requirements of your loan obligations.
2) American Advisors Group
Editorial Rating: 4.98/5
American Advisors Group is one of the leading lenders of HECMs in the U.S.
Like most reverse mortgages lenders, American Advisors Group limits loans to $679,650 and requires borrowers to be over age 62. Your home must be approved by the FHA, and how much you can borrow will depend on things like your age, your home’s value, your disbursement method, and other factors.
The application process for American Advisors Group is straightforward. After a quick online application, you meet with an independent counselor. After that, you get an appraisal and finalize your loan. Your loan can come in a variety of forms depending on what kind of mortgage you choose. You can receive a lump sum, monthly payments, a line of credit, or any combination of these things.
American Advisors Group is a member of the National Reverse Mortgage Lenders Association and is fully accredited by the Better Business Bureau with an A- rating. They provide loans in almost all states.
3) One Reverse Mortgage
Editorial Rating: 4.84/5
Owned by Quicken Loans, One Reverse Mortgage is licensed in 50 states and currently operates in 47. The company works with the U.S. Department of Housing and Urban Development and offers mortgages insured by the Federal Housing Administration. Because all their loans are federally insured, you can only borrow up to $679,650.
One Reverse Mortgage offers three kinds of home equity conversion mortgages: an adjustable-rate HECM, a fixed-rate HECM, and a HECM for purchase.
An adjustable-rate HECM gives you an initial disbursement limit and allows you to receive the money as either a line of credit, a monthly payment, a lump sum or a combination of those three. You do not have to take money out from your line of credit immediately, but the amount that you can borrow grows over time.
A fixed-rate HECM gives you the money in one lump sum and locks in your interest rate. This is perfect for those who have big lump-sum expenses to cover.
Finally, a HECM for a purchase is for those who want to buy a new home with no required mortgage payment. You will still be required to pay for expenses like taxes and maintenance, but you are not required to pay the loan until the property transfers from your name.
The fees involved with One Reverse Mortgage are comparable to those with conventional mortgages with expenses like closing costs, insurance, and third-party fees for appraisals and inspections. After you apply for pre-approval, you need to see an independent counselor who will make sure that you understand a reverse mortgage. After that, you can get your home appraised to find out how much you’re eligible to borrow and finalize your loan.
One Reverse Mortgage is known for providing great customer service. The company has an A+ rating with the Better Business Bureau. They are members of the National Reverse Mortgage Lenders Association.
4) Finance of America Reverse
Editorial Rating: 4.35/5
Finance of America Reverse provides FHA insured reverse mortgages in 43 states and Puerto Rico.
The lender provides loans of up to $679,650 to borrowers who are over 62 years of age. How much you’ll be able to borrow and how much you will pay in interest will depend on your age, the value of your home, your financial situation, and whether or not your home fits the criteria for a federally insured reverse mortgage.
Finance of America Reverse also offers a jumbo reverse mortgage that allows borrowers over age 62 to borrow up to $4 million through a reverse mortgage. There is no mortgage insurance premium on these loans since they are not FHA insured. There is also no disbursement limitation. They offer a fixed-rate interest and provide the money in a lump sum.
Finance of America Reverse requires you to call them to learn more about their reverse mortgages rather than applying online. You’ll also need to get your home appraised before the final amount of the mortgage is determined.
Finance of America Reverse has an A+ rating with the Better Business Bureau and is a member of the National Reverse Mortgage Lenders Association.
5) HomeBridge Financial Services
Editorial Rating: 3.09/5
HomeBridge Financial Services provides home equity loans and mortgages, including reverse mortgages. The lender focuses on HECMs for those over 62 or older with a mortgage limit of $679,650.
HomeBridge Financial provides reverse mortgages for single-family homes, condos, and townhouses, and manufactured homes that meet FHA requirements.
HomeBridge charges fees including origination fees, third-party fees, and mortgage insurance premiums (MIP) that must be paid upfront. Their origination fees are typically under $6,000, third-party fees include expenses like appraisal and inspections fees. These costs come out of the balance of the loan.
When it comes to interest rates, you can choose fixed or adjustable. If you choose a fixed-rate loan, you’ll have to take it out in a lump sum. With an adjustable-rate mortgage, you can get a lump sum, a monthly payout that lasts a specific number of years, a line of credit, or a combination of these three.
The user experience of the HomeBridge website is straightforward. Although it is difficult to find some of the information, staff members on can assist you.
6) All Reverse Mortgage
Editorial Rating: 3.01/5
All Reverse Mortgage focuses on providing FHA-insured reverse mortgages. This lender does not work with brokers on their mortgages, which allows them to pass on savings to you. They claim to charge less than their competitors for this reason.
When you borrow with All Reverse Mortgage, you take your money out in four ways: via a lump sum, in the form of a monthly payment, as a line of credit, or any combination of these.
They charge fees including an origination fee, and third-party fees for appraisals, and mortgage insurance. Since it is an FHA-insured loan your maximum borrowing amount is up to $679,650 in 2018. A recently published interest rate on its website was as low as 5.97% APR.
The process of getting a reverse mortgage includes filling out an initial application online or on the phone. After that, you are required to see an independent counselor who can help you better understand how reverse mortgages work. Finally, you get your home appraised, and your loan details are finalized.
All Reverse Mortgage has an A+ rating by the Better Business Bureau and is a member of the National Reverse Mortgage Lenders Association.
7) FBC Mortgage
Editorial Rating: 2.91/5
FBC Mortgage requires borrowers to be 62 years or older and have considerable equity in their home.
FBC Mortgage’s HECMs help you tap into your equity in a number of different ways, including by accessing your funds via a lump sum, line of credit, monthly payment, or a combination of these options.
If you’re interested in FBC Mortgage’s loans, you must first fill out an online form. After that, you’ll be required speak with an independent counselor, who will make sure you understand how reverse mortgages work and whether they’re right for you.
You’ll also have to get an appraisal of your home to make sure you qualify. After that, FBC Mortgages uses your age, the value of your home, and your preferred disbursement method to determine how much to lend to you before finalizing your loan. The online process is efficient.
FBC Mortgages is not a member of the National Reverse Mortgage Lenders Association, but the company has an A+ rating from the Better Business Bureau.
8) Longbridge Financial
Editorial Rating: 2.69/5
Longbridge Financial offers HECMs that allow you to tap into your home equity through a lump sum, monthly income, a line of credit, or a mix of these three. You can get up to 60 percent of the available proceeds in a lump sum. Longbridge Financial also offers a HECM that will help you purchase a new home.
To qualify for a reverse mortgage, you must meet the minimum property standards set by the U.S. Department of Housing and Urban Development, or use the proceeds of your reverse mortgage to pay for repairs. You must have no outstanding federal tax liens on your property and have paid your taxes for the last two years. You also must be 62 years or older to qualify.
When you apply for a reverse mortgage through Longbridge Financial, you first speak with an independent counselor to help you decide if it’s right for you. Then, your property is appraised and, if approved, you receive your funds. The application is easy to complete.
Longbridge Financial’s fees are comparable to conventional mortgage closing costs. You are required to have FHA insurance, and you have to pay for third-party and origination fees. You can finance the fees and other costs with your reverse mortgage.
When it comes to customer support, you can call or e-mail. The company is a member of the National Reverse Mortgages Lenders Association and has an excellent rating with Trustpilot.
Best Reverse Mortgage FAQs
How Do Reverse Mortgages Work?
A reverse mortgage is a loan that allows you to tap into your home equity to fund everyday expenses or emergency expenses. Typically, reverse mortgages are available to homeowners over age 62, although there are some reverse mortgages that are available to people who are younger. The major benefit of a reverse mortgage is that it does not require that you make monthly payments. Your loan is repaid when you either sell or move from your home or pass away.
When you take out a reverse mortgage, you often choose between a variable rate or a fixed rate. If you choose a variable rate loan, payments from the bank or lender that can be in the form of a lump sum, monthly annuity for life, monthly term annuity, equity line, or some combination of these. If you choose a fixed-rate reverse mortgage, you will get the funds in a lump sum.
If the balance of your reverse mortgage is less than the value of your home when it comes time to repay your reverse mortgage, you or your heirs will receive the remaining equity. Most reverse mortgages come with a requirement that your mortgage is never more than the value of your home.
So, how much can you get from a reverse mortgage? It depends on your age, or the age of the youngest spouse if you’re married. The lender will also consider factors like the value of your home, the interest rate, and the limit for federally insured reverse mortgages, which is currently $676,650.
Some reverse mortgage lenders allow you to borrow a limited amount in the first year and then increase the amount that you can borrow each year. If you get a reverse mortgage that isn’t federally insured, the limit depends on the lender so those mortgages can be much higher.
How Do Reverse Mortgage Applications Work?
When you apply for a reverse mortgage, you typically fill out an initial form online or contact the lender directly to express interest. They walk you through your options. After that, you usually meet with an independent counselor who explains the reverse mortgage process and helps you make the right choice for you. This step is in place to ensure that companies are not taking advantage of elderly homeowners.
After that, you will need to get your home appraised to determine its value before you can finalize the details of your loan. When you take out a reverse mortgage, there are also some additional fees to consider.
You’ll have to pay higher closing costs based on your home’s value including expenses like origination fees, appraisal fees, and mortgage insurance. You’ll also be responsible for paying for property taxes, insurance, and repairs on your home.
What Are the Main Types of Reverse Mortgage Disbursements?
There are several ways to get money from a reverse mortgage. For example, if you want to get a variable or adjustable-rate loan, you can choose from four kinds of disbursements: a lump sum, a monthly annuity for life, a monthly term annuity, or a line of equity. You can often also choose a mix of things options. If you want to get a fixed-rate mortgage, you can only get your money in the form of a lump sum.
Many reverse mortgages pay out the amount of your mortgage in a lump sum. This is useful if you need a lot of money right away such as in the event of a medical emergency. You could also take out a lump sum reverse mortgage and just use the money for monthly or emergency expenses as they arise. But interest charges will start accruing on the day that you borrow.
Monthly Annuity for Life
Reverse annuity mortgages are designed for those who want to retire and don’t want to move but their main asset is their home. They can use this version of a reverse mortgage to get an annuity that will pay a regular income for life. While this is a way to guarantee that you’ll get income for life, you could end up with less money than you would if you got a term annuity, or if you chose a lump sum and invested the proceeds.
Monthly Term Annuity
A reverse annuity mortgage can also provide you with a term annuity. That means that you won’t get payments for life, but only for a specific period of time like 10 or 20 years. After that term is over, the annuity will expire.
You could get a better deal on your annuity payments if you purchase a term annuity as you’re guaranteed to get a specific payout. If you expect to live longer, an annuity for life may be the better option. Shop around and compare options.
Line of Credit
A reverse mortgage line of credit functions more like a home equity line of credit (HELOC) than a typical mortgage. With a line of credit, you get approved for a certain amount to borrow for your reverse mortgage, but you only access the funds if you need them. This helps reduce the interest costs you’ll pay on your mortgage if you’re using your reverse mortgage to supplement everyday expenses. This could mean you’ll owe less in the end.
What Are Single-Purpose Reverse Mortgages?
A single-purpose reverse mortgage is available to seniors who need money for a few approved reasons such as paying property taxes or home renovations or repairs. These types of reverse mortgages are available from state and local government agencies and non-profits. Usually, only low- to moderate-income homeowners qualify.
The benefit of single-purpose reverse mortgages is that they charge less in interest and fees than other reverse mortgages. Like other types of reverse mortgages, there are no monthly payments and the mortgage doesn’t have to be repaid until the property changes ownership.
The downside of single-purpose reverse mortgages is that you can only use the funds for a limited number of uses, and you often can’t borrow as much. Also, if you are a senior homeowner who is struggling to pay your property taxes or need home repairs, there might be other types of funds that could be available to you such as grants from local housing agencies, discounts on property taxes, or home equity lines of credit.
What Are Proprietary Reverse Mortgages?
A proprietary reverse mortgage is from a private lender and is not federally insured.
This means that reverse mortgage lenders establish their own terms and fees. They can, therefore, charge higher interest rates, have bigger upfront fees, and provide you with far more money than the federally insured lenders.
These types of reverse mortgages are often called jumbo reverse mortgages. They are often used by homeowners who have homes worth more than the $679,650 FHA limit.
You can use the proceeds of a proprietary reverse mortgage for any reason, unlike a single-purpose reverse mortgage. These mortgages don’t restrict the amount that you can borrow in the first year of your reverse mortgage. You get all the funds in a lump sum or in the form of a line of credit.
The downside is that proprietary reverse mortgages might be harder to find as not many lenders offer them. They also might have higher income tests. If your home is more expensive, lenders will want to ensure that you can afford to maintain your home throughout the length of your reverse mortgage.
What Are Federally Insured Home Equity Conversion Mortgages (HECM)?
A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that is insured by the Federal Housing Administration. These mortgages allow the borrower to borrow money against their home based on its appraised value and the age of the borrower. No payments are made on the loan balance, but when the home must be completely repaid when it is sold or the homeowner passes away.
Because the loans are federally insured, you might be able to get a better deal with fewer fees and lower interest rates. However, there is a limit to how much you’ll be able to borrow if you decide to take out a HECM. This amount changes annually, but in 2018, you can borrow up to $679,650. If you have a home that is worth much more, then an HECM reverse mortgage might not be the best deal for you.
You must be over 62 and have significant equity available in your home to qualify.
Why You Should Compare the Best Reverse Mortgage Lenders
When it comes to loan products, financial companies offer different deals and provide different terms. Some reverse mortgage companies will charge more in interest and fees on your loan. Some companies will also be willing to lend you more. Some will offer different types of reverse mortgages or more flexibility. By shopping around and comparing the costs, you can ensure that you get the best rates and terms available.
You might also shop for loan alternatives to reverse mortgages so that you can make sure that a reserve mortgage is the right thing for you.
What is a Reverse Mortgage Line of Credit?
A reverse mortgage line of credit allows you to use your home equity by taking it out of a line of credit whenever you want and for whatever purposes without having to pay it back or make monthly payments.
This can be a better option than a traditional reverse mortgage because it allows you to take out money only as you need it. That will reduce the amount of interest charged on your loan. With a traditional lump-sum reverse mortgage, you get the whole mortgage at once. If you were planning on using it to pay for monthly expenses or for emergencies, you will still pay interest on it right away.
A reverse mortgage line of credit has another advantage over a home equity line of credit (HELOC) in that you can borrow more each month. The amount you have access to increases. Having a reverse mortgage line of credit helps protect you in case of an emergency.
What Are the Risks of Reverse Mortgages?
Generally, financial experts suggest that you tap into other forms of income before you leverage a reverse mortgage. While a reverse mortgage can help you pay off everyday or emergency expenses, it can be quite costly. There are higher up-front closing costs and fees with a reverse mortgage than with other types of loans. You also could end up carrying your full mortgage for many years and charged interest on that loan. That could erode your equity completely. If you want to leave your home to your family, there might not be any equity left over.
During your reverse mortgage, you’ll still have to pay for all of the costs of your property like home maintenance, property taxes, and homeowners insurance.
Another downside to reverse mortgages is that you also are required to sell the home and repay the loan when you move out or pass away. If you need to suddenly move out of your home because of health issues or if you pass away suddenly, you or your heirs may have extra work during an already difficult period.
How to Avoid Bad Reverse Mortgages
If you’re not sure if your reverse mortgage lender is qualified to provide mortgages or if you think that the mortgage being offered to you might be a scam, check with the Nationwide Multistate Licensing System and Registry. This is the only licensing agent for mortgage companies in all states and territories. It provides consumers with information to protect them and provide professional standards for mortgage professionals.
What is the National Reverse Mortgage Lenders Association?
The National Reverse Mortgage Lenders Association is an organization that represents reverse mortgage lenders. It serves as an educational resource for the public and is involved in policy advocacy. It also has a Code of Ethics and Professional Responsibility that it requires members to abide by. You can find members at Reversemortgage.org.