Best reverse mortgage lenders in 2024

Reverse mortgages can be complicated and expensive, so it’s crucial to shop around. To simplify things as you compare reverse mortgages, we’ve rounded up a list of the best reverse mortgage lenders to consider.

Bankrate’s picks for best reverse mortgage lenders

American Advisors Group (AAG)

• Highlight

  In terms of loan originations, AAG is the largest reverse mortgage lender in the U.S. It’s a division of Finance of America Reverse, another major reverse mortgage lender.

• Reverse mortgage options and requirements

  HECM, lump sum, line of credit, jumbo, reverse for purchase

  • For HECMs, borrowers must be aged 62 or older and have considerable equity or own their home free and clear and live there, and undergo HUD-approved counseling

  • Must continue to pay for homeowners insurance and maintenance, property taxes and any HOA dues

  • Must pay HECM mortgage insurance premiums when loan comes due

• Pros and cons

  Pros

  • Available nationwide

  • Borrow up to $4 million

  • Typically waives $35 service fee

  Cons

  • Only eight branch locations

Finance of America Reverse (FAR)

• Highlight

  Finance of America Reverse’s reverse mortgage packages include unique options for different types of borrowers.

• Reverse mortgage options and requirements

  HECM, lump sum, line of credit, reverse for purchase, EquityAvail, HomeSafe (jumbo)

  • For HECMs, borrowers must be aged 62 or older and have considerable equity or own their home free and clear and live there, and undergo HUD-approved counseling

  • For EquityAvail or HomeSafe, borrowers must be aged 55 or older

  • For EquityAvail, borrowers must make payments for the first 10 years

  • Must continue to pay for homeowners insurance and maintenance, property taxes and any HOA dues

  • Must pay HECM mortgage insurance premiums when loan comes due

• Pros and cons

  Pros

  • Diverse product range

  • No origination fee on some loans

  Cons

  • EquityAvail and HomeSafe not available in every state

Longbridge Financial

• Highlight

  Longbridge Financial is one of the top 5 reverse mortgage lenders in the U.S.

• Reverse mortgage options and requirements

  HECM, lump sum, line of credit, reverse for purchase, Platinum (jumbo)

  • For HECMs, borrowers must be aged 62 or older and have considerable equity (at least 50 percent) or own their home free and clear and live there, and undergo HUD-approved counseling

  • For Platinum, borrowers must be aged 55 or older

  • Must continue to pay for homeowners insurance and maintenance, property taxes and any HOA dues

  • Must pay HECM mortgage insurance premiums when loan comes due

• Pros and cons

  Pros

  • A+ Better Business Bureau rating

  • Mobile app

  • $500 discount for members of military

  Cons

  • No branch locations

Mutual of Omaha Reverse Mortgage

Learn morein our Bankrate review

• Highlight

  Mutual of Omaha offers the option to refinance your reverse mortgage (whether it’s with Mutual or another lender) to a better interest rate and/or higher amount.

• Reverse mortgage options and requirements

  HECM, lump sum, line of credit, reverse for purchase, HomeSafe (jumbo)

  • Borrowers must be aged 62 or older and have considerable equity or own their home free and clear and live there, and undergo HUD-approved counseling

  • Must pay HECM mortgage insurance premiums when loan comes due

• Pros and cons

  Pros

  • Available in most states

  • No mortgage insurance on HomeSafe loans

  Cons

  • Not available in New York or West Virginia

  • No products for borrowers younger than 62

How to find a reverse mortgage lender

You can start exploring reverse mortgage options in your state using HUD’s FHA lender search tool. The search function allows you to search for HECM lenders by state, county and zip code. Just check off the “Reverse Mortgages” filter.

Not every mainstream mortgage lender offers reverse mortgages. Rather than looking to your bank, you might be better off with a lender that specializes in these types of loans.

When comparing your top options, consider what’s most important to you: your bottom line (the cost), the convenience of the experience and service, or a combination:

• Costs – While there are no monthly payments with a HECM, it’ll still cost you money to obtain via the interest rate and fees. The closing costs for a HECM are fairly standard across the board, but there are some services that cost more or less depending on the lender. That said, you might be able to negotiate closing costs with the lender.

• Customer service – Reverse mortgages have a complicated set of rules, and if you don’t adhere to them, you could lose your home. Pay attention to how responsive the lender is to your queries and customer reviews and testimonials.

Be wary of reverse mortgage scams. These include claims that a reverse mortgage could help you put off claiming Social Security benefits or buy a home with no money down, or requiring you to sign a document with blank fields.

Who are the largest reverse mortgage lenders in the U.S.?

As of December 2023, the largest HECM lenders based on originations are:

1. Finance of America Reverse (FAR)

2. Mutual of Omaha Reverse Mortgage

3. Longbridge Financial

4. Liberty Reverse Mortgage

5. Fairway Independent Mortgage

6. Open Mortgage LLC

7. Good Life Home Loans

8. Guild Mortgage Company

9. Cherry Creek Mortgage Co Inc.

10. HighTechLending Inc.

Source: Reverse Market Insight

FAQ on reverse mortgages

• What is a reverse mortgage?

  Reverse mortgages give homeowners aged 62 or older the opportunity to get tax-free cash payments while remaining in their home. The payments are often structured to allow you to choose a lump sum or line of credit. You don’t have to repay the lender until you die, move or sell your home. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). In addition to HECMs, some lenders offer proprietary reverse mortgages for homeowners aged 55 or older, as well as reverse mortgages above FHA loan limits.

• What are the benefits of a reverse mortgage?

  The payments from a reverse mortgage can help supplement whatever income you might be receiving in retirement. The extra cash flow can also help you pay for home renovations, healthcare costs or other expenses. A reverse mortgage isn’t without downsides, however. Learn more about the pros and cons of a reverse mortgage.

• Methodology

  To determine the best reverse mortgage lenders, Bankrate evaluated lenders based on availability, affordability and borrower experience. Learn more about our methodology.