Reverse mortgages are complex, and if you’ve never looked into one before, you’ll find there are many nuances to them. Every lender is not the same and offers different features and charges various fees. Find a listing of the best reverse mortgage lenders to get the process started quickly and start enjoying the benefits of the equity in your home.
Quick Look: Best Reverse Mortgage Lenders
- Best Overall: CrossCountry Mortgage
- Best for Online Process: loanDepot
- Best for HECMs: American Advisors Group (AAG)
- Best for Proprietary Reverse Mortgages: Finance of America Reverse
- Best for Customer Service: Longbridge Financial
- Best for Affordability: Liberty Home Equity Solutions
- Best for Evaluating Your Options: Homebridge
7 Best Reverse Mortgage Lenders
Tap into your home’s equity with these leading reverse mortgage lenders. Learn the requirements, upfront fees, days to close and application process to prepare for your loan application.
1. Best Overall: CrossCountry Mortgage
Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA
CrossCountry Mortgage tops this list because it offers many loan types, including conventional and government-backed. One of its best features is that it is fast at closing loans, getting you your equity within as little as 21 days.
One challenge of using this lender is that the process for preapproval is not handled entirely online. You’ll provide information and documentation and then wait for a call from a loan officer to discuss your options and rates. Other than that, the company is outstanding and has a solid customer satisfaction rating to back it up.
Minimum age: 62
Upfront fees: variable based on your selections
Days to close: as little as 21 days
Application process: starts online but requires a call with a loan officer
States served: 50
Pros
- Closing your loan is fast
- Choose from various options to lower your down payment
- Wide variety of loans helps you get the terms and features you need
- 600 branches nationwide
Cons
- Must apply to see rates
- Preapproval process requires phone calls and cannot be completed entirely online
2. Best for Online Process: loanDepot
If you’re looking for a simple online process for applying for your loan, loanDepot is a good option. The company has been in the industry for over a decade and aims to make the loan process simple.
But when it comes to communication, many customers think the company falls short. The setback to a mostly online process is less human interaction. If you’re looking to ask questions and learn more about a reverse mortgage, this likely isn’t the way to go. But if you’re confident in your selections and ready to get started, loanDepot will help make the process simple.
Minimum age: 62
Upfront fees: variable and not published until you apply
Days to close: 30 days
Application process: online
States served: 50
Pros
- Online application
- Transactional process for those who know what they want
- Fast-moving loans
Cons
- Less communication and reverse mortgage estimation tools compared to other lenders
- Fewer loan options are available compared to other lenders
3. Best for Home Equity Conversion Mortgages (HECMs): American Advisors Group
American Advisors Group (AAG) is known for being the place to go for answers to common reverse mortgage questions. You’ll still face many upfront fees that could total up to $17,000 depending on the nature of your loan and your home’s unique features. You’ll have options to decide how long to receive payments from the reverse mortgage.
To qualify, you must have paid down most of your mortgage on the home, and it must be your primary residence.
Minimum age: 62
Upfront fees: up to $8,000
Days to close: within 30 days
Application process: Online or in person at eight locations
States served: 50
Pros
- Nationwide availability
- Get a loan of up to $4 million
- Many lenders receive a service fee waiver
Cons
- If you like doing business in person, this bank only has eight locations
- You’ll need to pay HECM mortgage insurance premiums when your loan is due
4. Best for Proprietary Reverse Mortgages: Finance of America Reverse
Finance of America Reverse offers some unique products. Its reverse mortgages are available to seniors looking to move into a new home. That way, they can downsize, move closer to other family members or find a living arrangement that works better based on their limitations.
You can get an HECM in any state, but when seeking the HomeSafe product, you must reside in one of the 26 states where the product is available.
Minimum age: 62 for HECM; 55 for EquityAvail and HomeSafe
Upfront fees: variable and not disclosed until the application is complete
Days to close: 30
Application process: Phone
States served: 50, with limitations on proprietary products to only 26 states
Pros
- Many products available
- Some loans have no origination fees
- Has support even on Saturdays
- Customers give the company good reviews and ratings
- Access equity of up to $4 million
Cons
- Some products are not available in every state
- You have to start the application to learn the fees and costs associated with the loan
- No online application
5. Best for Customer Service: Longbridge Financial
If you’re looking for a reverse mortgage with a lower minimum age requirement, Longbridge Financial might be the solution. Starting at age 55, you can tap into your home’s equity.
The company has outstanding customer ratings thanks to its superb customer service.
It also has many educational materials to help prepare borrowers for the process of completing a reverse mortgage application and what to expect. With many options for how to structure your loan and pay your fees, the lender is a good option for pulling equity from your home.
Minimum age: 62 for most products and 55 for Platinum product
Upfront fees: up to $8,000
Days to close: 45
Application process: online in 49 states (over the phone for New York)
States served: 50
Pros
- Manage your loan conveniently from the mobile app
- Military members receive $500 off
- Excellent ratings with the Better Business Bureau
- Option to get a reverse mortgage starting at age 55
Cons
- No physical locations
- Customer support is limited to Monday through Friday
6. Best for Affordability: Liberty Home Equity Solutions
When you’re strapped for cash, paying the upfront fees for a reverse mortgage might not be a possibility. So you need the monthly cash but can’t pay the upfront expense associated with the loan. In those cases, Liberty Home Equity Solutions is a great option because it will add your upfront costs to the total loan amount to make the experience more affordable. This is rare to find in the industry and can help seniors get a loan when they would not otherwise qualify.
Minimum age: 62 for traditional products; 55 for EquityIQ
Upfront fees: none depending on how you structure your loan
Days to close: 30
Application process: online
States served: 48, excluding Hawaii and New York
Pros
- Option to avoid all upfront lender fees
- Helpful resources to learn more about your reverse mortgage needs
- Member of the National Reverse Mortgage Lenders Association to adhere to ethics and responsibility
Cons
- Eligibility requirements are more complex than those of other lenders
- Limited availability in only 48 states
7. Best for Evaluating Your Options: Homebridge
Homebridge is a well-established lender offering a variety of loan types. The lender offers loans in all but Tennessee and Iowa. While it doesn’t have a mobile app, you can use the service through your browser on any device at your convenience. The lender does not provide its rates online, meaning you’ll need to complete the application to learn more.
Minimum age: 62
Upfront fees: variable and not disclosed until completing the application
Days to close: 30
Application process: online
States served: 48, excluding Tennessee and Iowa
Pros
- Locations in 31 states to aid in the process
- Complete the application process entirely online
- Nearly nationwide availability
Cons
- Does not publish rates or fees online
- A- rating with the Better Business Bureau
- No mobile app for managing your loan
What Is a Reverse Mortgage?
A reverse mortgage helps you pull equity from your home to pay expenses. Instead of owing money on a mortgage each month, the lender offers a payment to you each month and adds it to your tab along with interest. You don’t have to pay the money until the loan period ends or you move out of the home. Often, it falls on your heirs to pay off the loan when you die.
How Does a Reverse Mortgage Work?
A reverse mortgage is a loan that provides a piece of the equity in your home each month. The loan value is based on the value of your home, less any outstanding mortgages you have on the home. You don’t have to make payments on the loan until you sell the home or die.
For example, if you own a $400,000 home and only owe $20,000 on your mortgage, you might qualify for a $380,000 reverse mortgage. You’ll agree to a term for how long you’ll receive a monthly payment from the loan. This is not free money as you’ll accrue a balance with interest on the loan. Some lenders also offer a reverse mortgage as a lump sum after closing.
You can end the loan at any time, but you’ll then be responsible for making payments on the loan.
Types of Reverse Mortgages
As you evaluate reverse mortgage options, look into these various types to see what would be the best fit for you.
Home Equity Conversion Mortgage (HECM)
These federally insured loans are often more expensive than traditional home loans and include more upfront fees, but you can qualify for a loan without income requirements. Like all reverse mortgages, you’ll need to complete counseling before applying so you fully understand the costs and repayment responsibilities.
These loans are flexible in how you take your payments. You can get monthly installments for the duration of your time in your home, cash advances for specific periods or a credit line that you draw from when you need it.
Proprietary Reverse Mortgages
These loans are backed by the lenders. They are often best for homeowners with expensive homes. The lower your mortgage balance, the better these loans generally are for you. You will still have an option for a lump sum or monthly payments. Unlike federally backed loans, you won’t be responsible for upfront or monthly mortgage insurance premiums, potentially increasing how much you can borrow. Before taking out one of these loans, look into the cost of various loan terms and options.
Single-Purpose Reverse Mortgages
Often, these are the least expensive options. The government or nonprofits back these loans, which can help you pay less in interest or fees. It is the most common loan type for that reason. Just know that these loans have strict rules for how you can use them. Some common uses include home repairs and property tax payments.
Reverse Mortgage vs. Traditional Mortgage
When it comes to reverse mortgages versus traditional mortgages, there are several differences you should be aware of.
- Payments: With a traditional mortgage, you’ll pay money toward your principal and interest each month for the term you agreed upon at closing, most often 15 or 30 years. In contrast, a reverse mortgage pays you each month. It can be used to cover expenses. You’ll be responsible for maintaining homeowners insurance and paying property taxes to stay in your home.
- Repayment: Traditional loans require that you repay them within the term provided. You can make additional payments to shorten the loan but cannot extend the loan without a refinance. In contrast, instead of paying off your mortgage each month with a reverse mortgage, your loan amount will increase with each monthly payment you receive. The loan only becomes due once you move, sell the home or die.
- Nonrecourse: Regardless of the loan amount you take with a reverse mortgage, you’ll never owe more on the property than it is worth. So if you die and your heirs want to purchase the property, they just need to pay off the loan amount or the total property value, whichever is smaller. That’s not true with traditional mortgages. If your home depreciates, you’ll still owe the total amount of your loan no matter its fair market value.
Pros and Cons of Reverse Mortgages
Learn some of the benefits and disadvantages that reverse mortgages provide before applying for the loan.
| Pros | Cons |
| Stay in your home even when your expenses become too much | Upfront fees you’ll need to have cash for |
| Manage expenses during retirement | The loan could impact your eligibility for Supplemental Security Income (SSI) and Medicaid |
| Reverse mortgage payments are not taxed | You’ll still need to pay to maintain the home |
| Your loan repayment amount will never exceed the value of your home | It can create headaches for your survivors or make the home unaffordable for them to assume |
| After your death, your heirs can choose to sell the property and keep proceeds once paying off the loan, refinance the mortgage, allow the lender to take the property or repay the debt out of pocket to purchase the home | The loan interest is only tax-deductible once you start repaying the loan |
Tips for Finding the Best Reverse Mortgage
Before taking out a reverse mortgage, learn these best practices to get the most from the experience and avoid unfavorable terms.
Do Your Homework First
Make sure you know what you’re committing to with a reverse mortgage. Learn the pros and cons and evaluate other loan options or ways of continuing to meet your expenses without taking a loan.
Shop Around
Evaluate multiple lenders to find the one that is best for you. When shopping, look to see whether the lender is certified, a member of the National Reverse Mortgage Lenders Association (NRMLA), has the expertise to work with customers like you and has good customer feedback from those who have worked with the lender.
Look Beyond the Interest Rate
The interest rate is just one factor in the loan expenses. The more direct costs that will affect you are the upfront fees and closing costs. Many loans also charge monthly servicing fees that you should be aware of.
Take Your Time
Don’t rush the process. Taking out a reverse mortgage is something you don’t want to take lightly. Talk to multiple lenders and evaluate the various reverse mortgage types to find the one that will work best for you.
Finding the Most Favorable Terms That Meet Your Needs
The best lender for one person might not match the needs of another. While you can gather insights and opinions from family and friends, interview the lender to decide whether it is the right fit for you. Evaluate all loan types before closing on the loan to make sure it will work well for you long term.
Frequently Asked Questions
What is the 60% rule for reverse mortgages?
The 60% rule for reverse mortgages outlines that you can only take 60% of the equity in your home during the first 12 months. You can take the remainder over the following 12 months.
What disqualifies you from getting a reverse mortgage?
You’ll be disqualified from getting a reverse mortgage if you have less than 50% equity in your home and are younger than 62 unless applying for a proprietary reverse mortgage.
Can you lose your house with a reverse mortgage?
After getting a reverse mortgage, you must continue to pay your property taxes, homeowners insurance and ongoing repairs. Failing to pay your taxes could mean your home goes into foreclosure.
About Rebekah Brately
Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.