Best reverse mortgage lenders in 2024

Reverse mortgages allow homeowners aged 62 or older to tap into their equity and receive tax-free cash payments while remaining in their homes. However, even the best reverse mortgages can be complicated and expensive, so if you’re considering one of these loans, it’s crucial to shop around to find the right lender for you. To simplify things as you compare reverse mortgages, we’ve rounded up a list of the best reverse mortgage companies to consider.

Bankrate’s picks for the 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 more in 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
  • 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.

Keep in mind: Not every mainstream mortgage lender does 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 reverse mortgage companies, 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 require you to sign a document with blank fields.

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

As of June 2024, 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. Guild Mortgage Company
7. GoodLife Home Loans
8. South River Mortgage LLC
9. Plaza Home Mortgage Inc.
10. Movement Mortgage LLC

Additional reverse mortgage resources

If you’d like to learn more about reverse mortgages, explore these resources from Bankrate:

• Reverse mortgage resource hub
• Reverse mortgage pros and cons
• How do you pay back a reverse mortgage?
• Reverse mortgage requirements
• Home equity loan or HELOC vs. reverse mortgage: Which is right for you?

• Methodology

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