Best Reverse Mortgage Lenders

We compared 14 companies and chose the top reverse mortgage lenders

  • Easiest application process
    Finance of America Reverse
    4.5(2,970)
  • Reverse mortgage refinancing
    Liberty Reverse Mortgage
    4.5(2,078)
  • Customer service
    Simple Reverse Lending
    4.7(24)

Quick and easy. Get a Reverse Mortgage partner suggestion.

    Author pictureAuthor picture
    Author picture
    Written by
    Author picture
    Edited by
    14
    Companies considered
    3
    Companies selected
    2K+
    Reviews analyzed
    3
    Features compared

    A reverse mortgage can be a helpful way to supplement income for those who plan to age in place. It's a loan that allows the borrower to access the value of the home, and the loan is repaid when the borrower no longer lives in the home. The most common reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is backed by the federal government.

    The best reverse mortgage lenders are available to borrowers with a range of credit scores and have several types of reverse mortgage options, competitive rates and multiple payout options.

    Read our full methodology to learn more about how we compared different lenders and chose our top picks. Our picks may be Authorized Partners who compensate us; this does not affect our recommendations or evaluations but may impact the order in which companies appear.

    Why trust ConsumerAffairs?
    • Our recommendations are based on what reviewers say.
    • 4,464,082 reviews on ConsumerAffairs are verified.
    • We require contact information to ensure our reviewers are real.
    • We use intelligent software that helps us maintain the integrity of reviews.
    • Our moderators read all reviews to verify quality and helpfulness.

    Compare our top 3 best reverse mortgage companies

    Quick and easy. Get a Reverse Mortgage partner suggestion.

    Help me decide

    More details about our top 3 reverse mortgage companies

    It’s important to find a reverse mortgage lender you trust and feel comfortable with. These top three reverse mortgage lenders rated high among our readers for customer service and trustworthiness.

    Easiest application process
    Minimum credit score
    620
    Availability
    Varies based on reverse mortgage option
    Reverse mortgage options
    HECM, HECM for purchase, second-lien reverse mortgage and refinancing

    Finance of America Reverse (FAR) offers both government-backed and private reverse mortgages, which can help borrowers access more equity than the current HECM limits. Its website is more user-friendly than other reverse mortgage lenders and packed with helpful resources like videos and calculators. We like that reverse mortgage amounts are available up to $4 million, and there are loan options with no origination fees.

    Its HomeSafe program offers second-lien reverse mortgages for borrowers who want to keep their low rate but tap into more equity. Additionally, FAR offers EquityAvail, a home equity product for homeowners 55 and up who do not qualify for a reverse mortgage but need lower monthly payments. Both of these products are available in a limited number of states.

    Customers were pleased with how thoroughly FAR’s representatives answered all their questions. They also thought the overall process and rates were better than those of other lenders.

    “Finance of America went out of their way to make me feel comfortable with the process. They explained my options and showed me everything in writing. It was very clear,” said Cecilia from New York.

    FAR offers various solutions to aid seniors in leveraging their home equity for retirement, including Home Equity Conversion Mortgages (HECMs), HomeSafe for Purchase, jumbo reverse mortgages and second-lien reverse mortgages. It also provides retirement strategies and wholesale reverse mortgage opportunities for businesses and home sharing.

    Best mortgage refinancing
    Minimum credit score
    600-620
    Availability
    48 states
    Reverse mortgage options
    HECM, HECM for purchase and refinancing

    Liberty Reverse Mortgage is a direct lender and specializes in reverse mortgages. It says it has helped more than 60,000 borrowers since 2004. Homeowners can see if they qualify for a reverse mortgage within seconds without inputting sensitive financial information. It is available in most states.

    Liberty does not force you to pay any lender fees upfront; you can finance them into the loan.

    Customers liked that the company’s representatives took the time to answer all questions throughout the application and underwriting processes, which is especially helpful, since refinancing reverse mortgages can be a tricky process.

    Karen from Florida turned to Liberty Reverse Mortgage when she needed the money for a new roof. She said: “Liberty did all the work. When I did the application, they sent a notary here and she had me sign all the paperwork and she notarized everything. It was very easy.”

    Liberty Reverse Mortgage offers HECM and HECM for purchase. It also offers the option to refinance your home loan.

    Best customer service
    Minimum credit score
    Not disclosed
    Availability
    Most states
    Reverse mortgage options
    HECM

    Based in Birmingham, Alabama, Simple Reverse Lending operates as a full-service reverse mortgage lender across multiple states. We like that it has a free calculation tool and personalized proposal that you can use for a better idea of how much the process will cost you.

    Customers generally had positive experiences with Simple Reverse Lending. They found the application process to be simple and efficient, with helpful and knowledgeable representatives.

    One Texas customer said: "Andrew, the rep, helped us through the whole thing. He answered all of our questions and walked us through everything. … Working with Simple Reverse helped us a lot and it was a very positive experience."

    Simple Reverse Lending offers Home Equity Conversion Mortgage (HECM). It's worth noting that while they specialize in reverse mortgages, they also offer traditional mortgages through other brands owned by Click n’ Close.

    Compare Reverse Mortgage Reviews

    Sort
    • Featured
    • Best Rated
    • Most Reviewed
    • Highest Rated

    Quick and easy. Get a Reverse Mortgage partner suggestion.

      Reverse mortgage buyer’s guide

      If affording retirement is your top concern, a reverse mortgage can take some of that stress off. Many homeowners have used a reverse mortgage solution to afford necessary home updates to help them age in place or they have used the funds to pad their nest egg.

      Whatever your reason for a reverse mortgage, this guide will help you understand how reverse mortgages work, the types available, how to choose a suitable lender and the risks involved.

      What are reverse mortgages?

      Qualified homeowners age 62 and older can use a reverse mortgage to borrow against their home equity without having to make monthly payments back to the lender. With a reverse mortgage, you can receive a one-time cash payout or regularly recurring disbursements. The money isn’t due back until you move, sell the home or die.

      Reverse mortgage requirements

      There are specific requirements you must meet to qualify for a reverse mortgage. Along with being the correct age, you must also:

      • Live in the home as your primary residence
      • Own your home outright or have a low mortgage balance
      • Not be behind on federal debts
      • Have your own funds set aside for property taxes, homeowners insurance and any homeowners association (HOA) fees
      • Keep your home in good shape
      • Go through Department of Housing and Urban Development-approved mortgage counseling (for a HECM)

      Since a reverse mortgage is a nonrecourse loan, lenders can’t demand back more than the home is worth. If the property is sold for more than the debt on the loan, you (or your estate) are entitled to the surplus.

      Types of reverse mortgages

      Each lender will offer different reverse mortgage solutions, but the most common options include the following:

      • Home Equity Conversion Mortgages (HECMs): These are the most common types of reverse mortgages and are backed by the U.S. Department of Housing and Urban Development (HUD). The funds can be used for any purpose.
      • Proprietary reverse mortgages: Also known as jumbo reverse mortgages, these are privately insured by the mortgage companies due to the higher value of the home.
      • Single-purpose reverse mortgages: These are offered by some state and local government agencies for a specific purpose defined by the lender, such as home improvements or property taxes.
      • HECM for purchase: This is a special type of HECM that allows seniors to purchase a new home and obtain a reverse mortgage within a single transaction.

      » MORE: How do you pay back a reverse mortgage?

      How much does a reverse mortgage cost?

      You’ll want to make sure you consider all the costs of a reverse mortgage. For instance, like a traditional mortgage, you’ll need to pay closing costs, origination fees and an appraisal fee.

      You might also need to pay a counseling fee or mortgage insurance premiums. And you’ll still be responsible for things like homeowners insurance, taxes and home maintenance costs.

      While fees will vary by lender, you can expect to pay the following:

      • Origination fee: For homes valued less than $125,000, the fee is capped at $2,500. For homes valued higher, the lender is allowed to charge 2% on the first $200,000 and 1% on the value of the home above $200,000 for a maximum of $6,000.
      • Appraisal fee: This can typically range between $300 and $500.
      • Closing costs: These costs are paid to third parties and cover items like title search, recording fees, credit checks and mortgage taxes.
      • Ongoing costs: Additionally, you will have to pay interest, service charges and an annual mortgage insurance premium of 0.50% on your outstanding mortgage.

      How to get a reverse mortgage

      Getting a reverse mortgage is a big decision. Because your primary residence is collateral for a reverse mortgage loan, it’s crucial to talk to your spouse, children or other heirs about whether or not they plan to live in your house after you. If you want to keep the house in your family, your children can potentially refinance your mortgage loan and maintain the title.

      The reverse mortgage application process typically takes between 30 and 45 days. If you’re eligible for a reverse mortgage and decide it’s the right move for you and your family, these are the steps you need to take.

      Get an appraisal

      You need to know exactly how much equity you have in your home. An appraisal is required to determine your home’s current fair market value, and you can see how much you owe on your house on your monthly mortgage statement.

      After you complete the initial application and submit a signed certificate, you must pay for an independent HUD-approved appraisal. An underwriter then reviews your application and sets a closing date if everything is in order.

      Find the right reverse mortgage lender

      You can find reverse mortgage products through direct lending companies and brokers. Reverse mortgage wholesale lenders can work with banks and brokers to originate proprietary loans. Few national banks offer reverse mortgage programs now, but some smaller banks still do.

      If you’re interested in a HECM, you should focus on FHA-approved reverse mortgage lenders.

      Ask each lender how much you qualify for, what your payment options are, if there are any restrictions on the proceeds and what kind of fees you should expect to pay. Look for a national reverse mortgage lender who walks you through the entire process and doesn’t resort to high-pressure sales tactics.

      Get HUD-approved counseling

      You’re required to meet with a counselor approved by HUD in order to get a HECM. During counseling, you learn more about how a reverse mortgage affects you and your family. Your counselor also helps you compare alternatives to reverse mortgages, like cash-out refinancing or a home equity loan.

      Complete the application

      The application will be easier to complete if you have all the right documentation in order. You need the following:

      • Valid government-issued identification (driver’s license or passport)
      • Verification that the property is your primary residence (bank statements or voter registration)
      • Proof of income (W-2, Social Security benefits letter or pay stubs)
      • 1009 form
      • Your counseling certificate
      Close on the reverse mortgage loan

      At closing, your loan officer meets with you, an attorney and a notary to sign the documents to finalize your reverse mortgage loan. After the three-day rescission period, you start receiving payment disbursements according to the terms of your reverse mortgage. Funds from HECM and proprietary reverse mortgages can be used for living expenses or whatever else you like.

      Once you close on a reverse mortgage, you have certain obligations to maintain the property and avoid going into default. These include keeping up with property taxes, homeowners insurance and HOA fees.

      Reverse mortgage pros and cons

      “Reverse mortgages can benefit older individuals with fixed or reduced income,” said Dan Green, the CEO of Cincinnati-based mortgage company Homebuyer.com. “Through a reverse mortgage, homeowners can cease making conventional mortgage payments and, in turn, receive income from their property.”

      While reverse mortgages can be helpful for many homeowners, there are some downsides to consider, too. Here are the most common pros and cons to think through before moving forward.

      Pros

      • Afford to age in place: “Homeowners who wish to finance home improvements to facilitate aging in place can immediately halt their regular mortgage payments with a reverse mortgage, receive a lump sum for the renovations, and then continue to receive monthly payments until their passing,” said Green.
      • It’s not income: Your funds aren’t taxed, and they will not affect other retirement income streams, like Social Security.
      • You’ll never owe more than your home is worth: Since it is a nonrecourse loan, reverse mortgage lenders won’t charge you more than the current value of the property.

      Cons

      • Risk of foreclosure: You must be able to afford your property taxes and homeowners insurance and keep the property maintained to avoid defaulting on your reverse mortgage.
      • Reduced inheritance: If the home is a significant part of the planned inheritance, a reverse mortgage could reduce the amount left for heirs.
      • High closing costs: Reverse mortgages can have higher upfront costs compared to traditional mortgages.

      » MORE: Can you refinance a reverse mortgage?

      How do reserve mortgage customers rate the experience?

      We analyzed three years of consumer ratings on our site and calculated an overall satisfaction for reverse mortgage lenders of 4.5 stars.

      Out of 84,119 reviews collected, 87% or 73,491 customers gave their lender a four- or five-star review. Companies that we chose as our top picks in this guide all have an overall satisfaction rating of 4.4 stars or higher.

      Other key takeaways from our analysis of reverse mortgage lenders on ConsumerAffairs include:

      • The quality of staff and service is one of the most important aspects to reverse lender customers. Our top picks were also the three companies that had the most positive reviews in regard to service and staffing. Reverse mortgages can be a complicated, long process, so it is crucial to have experienced staff who can make the process seamless.
      • Reverse mortgage customers are most likely to comment negatively about fees. Although reverse mortgages can eliminate your monthly payment, there will still be several fees to set up the process. Ask how much the process will cost during your initial consultation.

      We also examined 1-star reviews on our site from several reverse mortgage companies. The most common complaint was about communication issues and delays. Some customers also expressed annoyance over having to get multiple appraisals.

      FAQ

      Is a reverse mortgage right for me?

      A reverse mortgage isn’t right for everyone, but it can be a good financial tool for older homeowners who want supplemental income and who don’t plan to move, can afford to keep up with ongoing home costs, expect their home to increase in value or live on a fixed income.

      How much money do you get from a reverse mortgage?

      The maximum loan amount anyone can access through a HECM is $1,089,300 in 2023 (up from $970,800 in 2022). Proprietary reverse mortgages have no cap. Many private lending companies offer proprietary jumbo reverse mortgages up to $4 million.

      How much money you can receive depends on three factors: the value of your home, your age and current interest rates. The more your home is currently worth, the more funds you can get through a reverse mortgage. Expect to get up to 60% of your home’s current value.

      Who owns the home in a reverse mortgage?

      The borrower remains the owner of the home. The lender does not own the home, but it can exercise its right to a forced sale or foreclosure if you do not uphold your part of the contract.

      Can a reverse mortgage be refinanced?

      Like a traditional mortgage, you can refinance a reverse mortgage to get more favorable terms. Refinancing requirements vary based on the type of reverse mortgage and whether you want to refinance into a conventional mortgage or another reverse mortgage.

      To refinance a reverse mortgage, you must submit a new application and possibly schedule another session with a HUD-approved counselor.

      Methodology

      To make our selections for the best reverse mortgage lenders, we analyzed over 2,000 customer reviews and overall ratings from ConsumerAffairs readers who have used a reverse mortgage company in the past three years.

      Customer ratings weighed these picks heavily, and we eliminated any company that lower than a four-star average rating in the past three years. Some other factors we considered include the following:

      • Availability: Lenders chosen had the widest availability across the United States. Most choices were only unavailable in one or two states.
      • Customer service: We considered the top-rated companies that had the most positive customer service ratings. All companies chosen had over 300 positive reviews based on the company’s customer service.

      Guide sources

      ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work.

      1. Consumer Financial Protection Bureau, “Can anyone take out a reverse mortgage loan?” Accessed Nov. 16, 2023.
      2. Consumer Financial Protection Bureau, “Are there different types of reverse mortgage?” Accessed Nov. 16, 2023.
      3. Consumer Financial Protection Bureau, “How much will a reverse mortgage loan cost?” Accessed Nov. 16, 2023.
      4. Federal Trade Commission, “Reverse Mortgages.” Accessed Nov. 16, 2023.
      5. U.S. Department of Housing and Urban Development, “Maximum Mortgage Limits 2023.” Accessed Nov. 16, 2023.

      Not sure how to choose?

      Get buying tips about Reverse Mortgage Lenders delivered to your inbox.

        By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Unsubscribe at any time.

        Thanks for subscribing.

        You have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.

        Compare Reverse Mortgage Reviews

        Want your company to be on this guide?

        Yes, continue
        Comparing

        ×