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Mutual of Omaha Reverse Mortgage Review

Our take on Mutual of Omaha’s reverse mortgage

  • Offers reverse mortgages, but you must contact a lender near you to find out specific details
  • Must complete reverse mortgage counseling before you can apply for a reverse mortgage
  • Reverse mortgages are best for those who have exhausted all other options for supplemental retirement income

Mutual of Omaha is an established company founded in 1909 with a long history of originating reverse mortgages. It’s the second-largest provider of mortgages behind Finance of America Reverse. Its stated mission is to help customers protect what they care about and achieve their financial goals. 

You might be familiar with Mutual of Omaha’s wide-ranging financial and insurance services for seniors. If you like having insurance and financial tools coming from the same provider, Mutual of Omaha might offer the convenience and familiarity you desire.  

Mutual of Omaha reverse mortgage at a glance 

Mutual of Omaha is a reverse mortgage lender with favorable reviews, which we’ll cover below. 

Eligible propertiesPrincipal residences under four units
Eligible statesLicensed in 48 states
Loan amountsUp to $4 million
FeesOrigination fee, mortgage insurance, closing costs, and interest

How does a Mutual of Omaha reverse mortgage work? 

A reverse mortgage also called a home equity conversion mortgage (HECM), is a way for borrowers to access the equity in their homes without making a monthly payment. Mutual of Omaha has four main products for reverse mortgages:

  • HECM Reverse Mortgage. The HECM is a traditional reverse mortgage backed by FHA. It has a loan limit of $1,149,825.  
  • HECM for Purchase. It’s possible to use the loan proceeds from a reverse mortgage with Mutual of Omaha to buy a new home. 
  • HomeSafe Reverse Mortgage. Mutual of Omaha sells the Finance of America HomeSafe Reverse mortgage for higher-value homes. Loans can go up to $4 million. 
  • Refinance loan. Mutual of Omaha gives borrowers the option to refinance a reverse mortgage into a new one. 

Which product is right for you is hard to determine before talking to a lender or going through the required Federal Housing Administration (FHA) reverse mortgage counseling. 

How much can you get from a reverse mortgage?

You might be concerned about how much money you have access to. There’s no easy answer to this question, but it’s important to understand how Mutual of Omaha will determine the maximum claim amount and principal limit. 

  • Maximum claim amount. The maximum claim amount is usually the appraised amount of the home, but it can also be the sale price or the United States Department of Housing and Urban Development (HUD) loan limit if those numbers are lower. The maximum claim amount isn’t how much you can borrow. That’s a lower number called the principal limit. 
  • Principal limit. The principal limit is the maximum amount you can borrow. It’s determined by your age, the available interest rate, and the maximum claim amount. Generally, the younger you are, the less you can borrow. Also, the higher your interest rate, the less you can borrow. 

Costs and fees

The costs and fees associated with a reverse mortgage are:

  • Reverse mortgage counseling: $125 – $200
  • Origination fee: Up to 2% for homes valued up to $200,000 and 1% of the remaining amount (but cannot exceed $6,000)
  • Closing costs: Include title fees, cost of the appraisal, recording fees, document preparation fees, courier charges, and more
  • Mortgage insurance: You’ll pay an upfront mortgage insurance premium and an annual premium

To qualify for a reverse mortgage, you must meet certain requirements. 

Who’s eligible for a Mutual of Omaha reverse mortgage? 

A reverse mortgage isn’t right for everyone, nor does everyone qualify. The requirements for a reverse mortgage are federally mandated, so you must meet them regardless of lender. 

PropertiesSingle-family homes, properties less than 4 units that are owner-occupied, approved FHA condominiums and manufactured homes
AgeMust be over 62 years of age
ResidencyMust be your primary residence
EquityAt least 50% equity in your home
Marital statusProtections exist for non-borrowing spouses, but it’s easier if both spouses are listed as borrowers on the loan. (Both spouses must be 62 or older.)
Home conditionHome must be in good condition
Recurring costsBorrower must pay for taxes, insurance, HOA fees, and home upkeep
Counseling sessionHUD-approved counseling session with third-party counselor required by law

How do you repay a reverse mortgage from Mutual of Omaha? 

You (or your heirs) repay a reverse mortgage all at once at the end of the loan, which is often when you sell or leave the home. It also becomes due if you don’t pay for homeowners insurance or taxes or you fail to maintain the home. 

The longer you receive money from a reverse mortgage, the more you’ll owe when it’s due. You can sell or refinance the home—or use money from savings to repay the loan. No prepayment penalty applies for paying early on a reverse mortgage from Mutual of Omaha. 

Pros and cons of Mutual of Omaha’s reverse mortgage 

Reverse mortgages have pros and cons to consider, particularly when it comes to how they affect your long-term finances. 


  • No monthly payments

    Reverse mortgages never require a monthly payment. 

  • Multiple disbursement options 8

    You may be able to get a lump sum, monthly payments, or a line of credit. 

  • Use funds however you like

    No restrictions on how you use income from a reverse mortgage.

  • Retire in place

    Stay in your home with reverse mortgage income.


  • Reverse mortgages are expensive

    You can roll the interest rate, origination fee, and other costs into the loan, but they’re high regardless of lender. 

  • Equity decreases

    Your equity will decline as your disbursements add up. 

  • You or your heirs must repay all at once

    When you leave your home, the reverse mortgage is due immediately, and the home may need to be sold. 

Reverse mortgages are terrific if you need supplemental income and want to stay in your home through retirement. They’re flexible, but they’re also expensive financial tools. These pros and cons aren’t unique to Mutual of Omaha and apply to reverse mortgages from other lenders.   

Is Mutual of Omaha a reputable lender? 

It’s smart to consider customer reviews before you choose a financial product.

SourceCustomer rating (out of 5)Number of reviews
Better Business Bureau4.82 898
Collected on February 26, 2024.

Reviews for Mutual of Omaha’s reverse mortgage division are high. Borrowers report that customer service is responsive, and they’re impressed by the personal attention to loan files. Negative reviews are often centered around failed loans and loans that took longer than expected. 

How to apply for a Mutual of Omaha reverse mortgage 

The application with Mutual of Omaha is much like other reverse mortgage lenders. There’s no option to apply online, and you’ll work with a lender in your area. 

In total, the process typically takes around 45 days. Here’s what to expect:

  1. Submit your contact information. To speak with a lender from Mutual of Omaha, you can search the online directory for a loan officer near you, submit your information online, or call the toll-free number at 1-800-578-0283. 
  2. Complete required reverse mortgage counseling. Reverse mortgage counseling is required by law and must be completed before you apply. Counseling covers the features, drawbacks, and alternatives.
  3. Apply. Your lender will help you with the required documentation, which may include identification, a copy of your homeowner’s insurance bill, and property taxes.  
  4. Get an appraisal. A home appraisal is typically needed for a reverse mortgage. 
  5. Go through processing and underwriting. Underwriting is a manual process with a reverse mortgage and may take longer than with a traditional mortgage.
  6. Close on the loan and receive your funds. If approved, you’ll sign for your loan and get the funds. 

If you’re denied, find out why. Common reasons for denial include:

  • Age
  • Counseling session not completed
  • Not enough equity 
  • Property condition
  • Lender financing determination has determined you can’t pay for mortgage insurance, taxes, or homeowner insurance

It’s possible to reapply later if you can rectify these issues. 

How do other home equity products compare to Mutual of Omaha’s reverse mortgage? 

Compared with other home equity products, such as a home equity line of credit (HELOC), home equity loan, or a cash-out refinance, a reverse mortgage tends to be the most expensive option. It’s often best for those who can’t qualify for other home equity products. 

Home equity loans and HELOCs are loans you must qualify for and pay monthly. They preserve the equity in your home much better and have lower closing costs. Similar to a credit card, you can use a HELOC as you need it, often with a variable APR. 

A cash-out refinance is an excellent option for those who need a larger sum of money (such as for a renovation) and can qualify for the loan payment. It’s not a second mortgage—like a HELOC or a home equity loan—and it only requires one payment. Consider all your options, and research home equity companies, before deciding to use a reverse mortgage.

Mutual of Omaha reverse mortgage FAQ

How long does it take to get funds from Mutual of Omaha?

Once the loan closes, Mutual of Omaha should disburse the reverse mortgage funds within a few days. 

However, the reverse mortgage process involves a series of steps, including counseling, an application, appraisal, and closing. The time all these stages take may vary based on individual circumstances and complexities.

Does Mutual of Omaha have insurance requirements?

Yes, insurance requirements exist when you apply for a reverse mortgage with Mutual of Omaha. You must maintain adequate homeowners insurance coverage for the life of the loan. 

In some cases, flood insurance may be required if the home is in a flood-prone area. It’s imperative to understand these requirements. Failing to maintain the requisite coverage could result in default.

Can you back out of a reverse mortgage contract?

Yes, you can back out of a reverse mortgage contract with Mutual of Omaha. The law provides a “right of rescission,” which allows you to cancel your loan within three business days of closing without any penalty. 

This period gives you time to carefully review the terms and conditions and consult with a legal advisor or a trusted family member before making a final commitment.