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)

Finance of America Reverse

Reverse Mortgage Funding

Mutual of Omaha Reverse Mortgage

Longbridge Financial

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.