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Reverse mortgages give homeowners aged 62 and older the opportunity to get tax-free cash payments while remaining in their home. This income can serve as a much-needed source of funds to pay for retirement expenses. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM).
Reverse mortgages can be complicated and expensive, however, so 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 mortgages.
Best reverse mortgage lenders
American Advisors Group (AAG)
| Reverse mortgage options | HECM, lump sum, line of credit, jumbo, reverse for purchase |
| Requirements |
|
| Highlight | AAG is by far the largest reverse mortgage lender in the U.S. |
Pros
- Available in all U.S. states
- Borrow up to $4 million with a jumbo reverse mortgage
- Typically waives 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 |
|
| Highlight | Finance of America Reverse’s reverse mortgage packages include unique options for different types of borrowers. |
Pros
- Diverse product range including for those nearing retirement
- No origination fee on some loans
Cons
- EquityAvail and HomeSafe not available in every state
Reverse Mortgage Funding
| Reverse mortgage options | HECM, lump sum, line of credit, reverse for purchase, Equity Elite |
| Requirements |
|
| Highlight | Like those of some other reverse mortgage lenders, Reverse Mortgage Funding’s proprietary product is available to younger borrowers. |
Pros
- Available in all U.S. states
- Lender credits on some loans
- Online resources like a home equity calculator and learning center
Cons
- Equity Elite not available in every state
Mutual of Omaha Reverse Mortgage
| Reverse mortgage options | HECM, lump sum, line of credit, jumbo, reverse for purchase, HomeSafe |
| Requirements |
|
| Highlight | Mutual of Omaha’s HomeSafe allows borrowers access to up to $4 million, which is higher than the HECM limit. |
Pros
- Available in all U.S. states except New York and West Virginia
- No mortgage insurance on HomeSafe loans
Cons
- No products for borrowers younger than 62
Longbridge Financial
| Reverse mortgage options | HECM, lump sum, line of credit, jumbo, reverse for purchase, Platinum |
| Requirements |
|
| Highlight | Longbridge Financial was one of the top 10 reverse mortgage lenders in the U.S. in 2021. |
Pros
- A+ Better Business Bureau rating
- Easy-to-navigate website with detailed guides and information
- Mobile app for loan servicing
- Specializes in reverse mortgages only
- $500 discount for members of military
Cons
- No in-person support options
Methodology
To determine the best reverse mortgage lenders, Bankrate evaluated lenders based on several criteria, including availability, customer experience and loan options.
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 be sure to 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 loan.
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.
While reverse mortgages are generally a safe product, you’ll also want to be wary of the signs of a reverse mortgage scam. 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 |
|---|---|---|
| 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 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 |
