Reverse mortgages give homeowners aged 62 and older the opportunity to get tax-free cash payments while remaining in their home. This income can serve as a much-needed source of funds to pay for retirement expenses. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM).

Reverse mortgages can be complicated and expensive, however, so it’s best to shop around for a reverse mortgage lender. Because they are a relatively niche product, there are only some major players in the reverse mortgage space compared to other types of mortgages.

Methodology

To determine the best reverse mortgage lenders, Bankrate evaluated lenders based on several criteria, including availability, customer experience and loan options.

Best lenders for reverse mortgages

American Advisors Group (AAG)
Reverse mortgage options HECM, lump sum, line of credit, jumbo, reverse for purchase
Requirements
  • 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
Pros
  • Available in all U.S. states
  • Borrow up to $4 million with a jumbo reverse mortgage
  • Typically waives service fee
Cons
  • Only nine branch locations
Highlight AAG is by far the largest reverse mortgage lender in the U.S.

Finance of America Reverse
Reverse mortgage options HECM, lump sum, line of credit, jumbo, reverse for purchase, EquityAvail, HomeSafe
Requirements
  • 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
Pros
  • Diverse product range including for those nearing retirement
  • No origination fee on some loans
Cons
  • EquityAvail and HomeSafe not available in every state
Highlight Finance of America Reverse’s reverse mortgage packages include unique options for different types of borrowers.

Reverse Mortgage Funding
Reverse mortgage options HECM, lump sum, line of credit, reverse for purchase, Equity Elite
Requirements
  • 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 Equity Elite, borrowers must be aged 55 or older
  • Must continue to pay for homeowners insurance and maintenance, property taxes and any HOA dues
Pros
  • Available in all U.S. states
  • Lender credits on some loans
  • Online resources like a home equity calculator and learning center
Cons
  • Equity Elite not available in every state
Highlight Like those of some other reverse mortgage lenders, Reverse Mortgage Funding’s proprietary product is available to younger borrowers.

Mutual of Omaha Reverse Mortgage
Reverse mortgage options HECM, lump sum, line of credit, jumbo, reverse for purchase, HomeSafe
Requirements
  • 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
Pros
  • Available in all U.S. states except New York and West Virginia
  • No mortgage insurance on HomeSafe loans
Cons
  • No products for borrowers younger than 62
Highlight Mutual of Omaha’s HomeSafe allows borrowers access to up to $4 million, which is higher than the HECM limit.

Longbridge Financial
Reverse mortgage options HECM, lump sum, line of credit, jumbo, reverse for purchase, Platinum
Requirements
  • 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
Pros
  • A+ Better Business Bureau rating
  • Easy-to-navigate website with detailed guides and information
  • Mobile app for loan servicing
  • Specializes in reverse mortgages only
  • $500 discount for members of military
Cons
  • No in-person support options
Highlight Longbridge Financial was one of the top 10 reverse mortgage lenders in the U.S. in 2021.

How to choose a reverse mortgage lender

When comparing reverse mortgage lenders, 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 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.

While reverse mortgages are generally a safe product, you’ll also want to be wary of the signs of a reverse mortgage scam.