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
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
  • Must pay HECM mortgage insurance premiums  when loan comes due
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
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
  • Must pay HECM mortgage insurance premiums  when loan comes due
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

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
  • 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
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
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 pay HECM mortgage insurance premiums when loan comes due
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
HighTechLending 882 $305 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.