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Reverse mortgages, for older homeowners, can be complicated and expensive. Shopping around for a reverse mortgage lender is key. Because they are a relatively niche product, there are only some major players in the reverse mortgage space compared to other types of home loans.
Bankrate’s picks for best reverse mortgage lenders
American Advisors Group (AAG)
|Reverse mortgage options||HECM, lump sum, line of credit, jumbo, reverse for purchase|
|Highlight||AAG is by far the largest reverse mortgage lender in the U.S. It’s a division of Finance of America Reverse, another major reverse mortgage lender.|
|Pros||Available nationwide; borrow up to $4 million; typically waives $35 service fee|
|Cons||Only eight branch locations|
Finance of America Reverse
|Reverse mortgage options||HECM, lump sum, line of credit, jumbo, reverse for purchase, EquityAvail, HomeSafe|
|Highlight||Finance of America Reverse’s reverse mortgage packages include unique options for different types of borrowers.|
|Pros||Diverse product range; no origination fee on some loans|
|Cons||EquityAvail and HomeSafe not available in every state|
|Reverse mortgage options||HECM, lump sum, line of credit, jumbo, reverse for purchase, Platinum|
|Highlight||Longbridge Financial is one of the top 10 reverse mortgage lenders in the U.S.|
|Pros||A+ Better Business Bureau rating; mobile app; $500 discount for members of military|
|Cons||No branch locations|
Mutual of Omaha Reverse Mortgage
|Reverse mortgage options||HECM, lump sum, line of credit, jumbo, reverse for purchase, HomeSafe|
|Highlight||Mutual of Omaha’s HomeSafe allows borrowers access to up to $4 million, which is higher than the HECM limit.|
|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.?
Along with Bankrate’s best reverse mortgage lender picks, here are the largest reverse mortgage lenders as of 2022 according to Home Mortgage Disclosure Act (HMDA) reporting. These are ranked based on number of originations and dollar volume.
|Reverse mortgage lender||Loan originations in 2022||Loan volume in 2022|
*American Advisors Group (AAG) became a subsidiary of Finance of America Companies in March 2023.
**Reverse Mortgage Funding’s parent, Reverse Mortgage Investment Trust, filed for bankruptcy in November 2022.
***Cherry Creek Mortgage became a subsidiary of Guild Holdings Company in March 2023.
Source: Home Mortgage Disclosure Act data, aggregated by LendingPatterns
|American Advisors Group* (AAG)||16,035||$2.9 billion|
|Finance of America Reverse||10,895||$4.9 billion|
|Mutual of Omaha Reverse Mortgage||5,844||$1.6 billion|
|Reverse Mortgage Funding**||5,586||$2.2 billion|
|Longbridge Financial||5,531||$1.9 billion|
|PHH Mortgage||4,166||$1.1 billion|
|Open Mortgage||1,893||$568 million|
|Cherry Creek Mortgage***||936||$219 million|
|Fairway Independent Mortgage||876||$122 million|
FAQ on reverse mortgages
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.
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.
To determine the best reverse mortgage lenders, Bankrate evaluated lenders based on availability, affordability and borrower experience. Learn more about our methodology.