The Best Reverse Mortgage Companies of 2024

If you are a senior with limited income and are running low on savings, you may worry about finances during your retirement. Fortunately, a reverse mortgage may be able to provide you with the money you need by allowing you to borrow against your home equity. According to an article by Nasdaq, towards the end of 2021 the average homeowner was sitting on $185,000 of untapped equity within their property. However, senior homeowners may not know how a reverse mortgage can help them convert the equity within their homes into much-needed money for other expenses, like assisted living.

Reverse mortgages let seniors retain ownership of their homes, aren’t taxable, and don’t require monthly mortgage payments. They also give seniors a sense of financial freedom and security, as they can use funds that would otherwise be inaccessible.

In this guide, we explain reverse mortgages in further detail, covering how they work, eligibility factors, associated costs, and more. To further assist seniors interested in a reverse mortgage, we also provide reviews of 8 of 2024’s top-rated reverse mortgage companies.

Reverse Mortgage Basics

What Is A Reverse Mortgage?

A reverse mortgage is basically the opposite, or the reverse, of a conventional mortgage. With conventional mortgages, people take out a loan so that they can buy property and then repay the lender back gradually, typically with monthly payments including principal plus interest. With most reverse mortgages, people already own a home and borrow against its equity to get a loan where the lender issues them payments as a lump sum, a monthly advance, or a line of credit. Interest accrues on the outstanding loan balance, but payments are not usually made until borrowers move or pass away. Then the loan must be repaid either with cash or with proceeds from the sale of the property the borrower borrowed against.

How Do Reverse Mortgages Work?

Most reverse mortgages work by essentially allowing seniors to slowly sell their homes while continuing to live in them. The equity in their primary residence is used as collateral, and as their lender issues them payments, it decreases the remaining equity in their property. Loan proceeds can be paid by lenders as a lump sum, periodic annuity payments, or a line of credit and may be used however a borrower wishes or only to cover specific costs, depending on the loan agreement. Seniors who wish to buy a new home instead of remaining in their current primary residence also have an alternative option of choosing a “for purchase” reverse mortgage. These loans partially fund their new real estate purchase, allowing seniors to preserve capital for other uses.

Types of Reverse Mortgages

The three main types of reverse mortgages are single-purpose, HECM, and proprietary.

• Single-purpose loans are provided by state and local governments as well as other nonprofits and are the cheapest option, but availability is limited. Further, they may have income limits and lenders can determine what specific use funds can go towards.
• Home equity conversion mortgages (HECMs) are insured by the federal government and may have higher up-front costs in addition to set loan limits. However, you can decide how to use loan funds and are protected by regulations that prevent loan amounts from exceeding a home’s value.
• Proprietary loans are intended for properties valued above HECM loan limits and are offered through private lenders.

Who Can Benefit from a Reverse Mortgage?

Reverse mortgages are a great option for seniors who have insufficient income or savings to cover their living costs and who have considerable equity in their primary residences. They also make sense for those who have no heirs or whose heirs do not wish to inherit and live in their property. Seniors who need or want to move, but who do not want to invest all of their savings in their property, can also benefit from using a reverse mortgage to partially fund their new home purchase.

Who Is Eligible for a Reverse Mortgage?

Not everyone will be approved for a reverse mortgage, and eligibility varies based on the loan program. A majority of reverse mortgages are issued through programs that are insured by the government and must follow strict policies. However, there are also private, or proprietary, reverse mortgages offered through private lenders that have fewer regulations. Most reverse mortgages require the borrower to have considerable equity in their homes, often at least 50% of the property value, or to have fully paid off their property.

Government-sponsored loans have several additional qualifications, including that the youngest homeowner is at least 62 years old and the property being borrowed against is the borrower’s primary residence. It must also be an approved property type with at most one primary lien and borrowers will need to pay property taxes and homeowner’s insurance fees in addition to any fees for property maintenance.

Resources for Further Information

• Federal Trade Commission’s Reverse Mortgages article
• Investopedia’s Reverse Mortgage Guide With Types and Requirements
• The U.S. Department of Housing and Urban Development How the HECM Program Works article

How We Chose the Best Reverse Mortgage Lenders

We considered several factors during our research of reverse mortgage companies before deciding on the top 8 to feature in this guide. Among these factors were the inclusion of educational materials and helpful tools, product variety, loan availability, and the ratings and overall reputation of each company.

• Educational Materials and Tools: Reverse mortgages are complicated, and understanding the different types and how each works can be difficult. Companies with articles and blogs or that feature online reverse mortgage calculators to assist customers with understanding their products were given preference over companies that didn’t include any informative materials or assistive tools.
• Additional Services: We chose to include companies that went above and beyond to prioritize the customer experience. Examples of this are companies that offer in-person loan officer visits, a mobile app for access to information and enhanced communication, or price and service guarantees.
• Accessibility: All but one of the companies in this guide offer government-insured HECM reverse mortgage products in most, if not all, states. In addition, we include companies that also provide private reverse loan options in several locations.
• Reputation: Customer reviews, Better Business Bureau ratings, National Reverse Mortgage Lender Association membership, and other information demonstrating that companies provide quality products and services and adhere to ethical business practices were taken into consideration.

The 6 Best Reverse Mortgage Companies

*These nationwide limits are subject to change based on Federal Housing Administration policy.

**While licensed in all 50 states, Liberty Reverse Mortgage does not offer consumer-direct retail lending in Hawaii or New York.

All Reverse Mortgage, Inc. (ARLO)

Highest Ratings and Reviews   According to the Department of Housing & Urban Development, All Reverse Mortgage, Inc. (otherwise known as ARLO) is considered one of the top reverse mortgage lenders in the United States. Founded in 2004 and led by CFO Caren Dahmus, ARLO has provided 18 years of excellent products and services to its customers, earning an A+ rating with the Better Business Bureau (BBB) in addition to an average customer review of 4.98 out of 5 stars on the BBB website.   Its several mortgage options and accompanying services are also highly rated on other platforms, and the company was assigned five stars on Google and ConsumerAdvocate.org. As a 2021 Finalist for the BBB Torch Awards for Ethics, ARLO was recognized for its commitment to ethical business practices in addition to its many other achievements.   All Reverse Mortgage, Inc. (ARLO) Reverse Mortgage Products

All Reverse Mortgage, Inc. Highlights

• HUD approved with an A+ BBB rating as well as 5-star ratings on Google and ConsumersAdvocate.org.
• A 2021 finalist for the Better Business Bureau Torch Ethics Awards.
• Among the top ranking HECM lenders with lower interest rates according to HUD data available on the ARLO website.
• Features an online mortgage calculator for convenient loan comparisons with real-time interest rates and custom amortization schedules.
• With multiple jumbo and HECM reverse mortgage offerings, Reverse Mortgage, Inc. has among the most reverse mortgage products of all reviewed companies.
• Provides expert answers to questions, an opportunity to ask additional questions, and a blog for further information.
• Services are only available in 15 states – the fewest of all companies reviewed.

What Customers Like

Customers mention the professionalism of company employees as well as their patience, compassion, and ability to clarify questions or concerns. Employees are also found to be particularly dedicated and hardworking, providing quick paperwork processing as well as delivering faster than expected closing times. Further praise includes that company representatives are always available when needed, promptly returning customer calls or emails as quickly as the same day or within 24 hours. Examples of such comments are included below:   “Quick, courteous and efficient. Mike was always there to answer questions and return calls promptly. Theresa our loan processor was the best I’ve ever worked with” – Betty   “Very professional regarding all matters related to the reverse mortgage. All questions were answered promptly. Highly recommended.” – Ken G.   “Cliff gave me an unbelievable explanation of my situation promptly and concisely! My sincere thanks!” Jan. M.

What Customers Don’t Like

Reviewers who were dissatisfied with All Reverse Mortgage, Inc. describe receiving lower appraisal values for their properties than they either expected or received from alternative lenders. A handful of reviewers also mention rude or uninformed customer representatives. However, the business responded to these reviews, claiming that many of them were left by competitors. It came to this conclusion because the company collects data (including names) of callers in order to provide them with accurate information, and there was no record of these reviewers having called to interact with representatives. The following are examples of comments left by unhappy reviewers:   “Spoke with a difficult salesperson, they were very pushy and at times flat out rude. This was the 3rd reverse mortgage company we called and it’s safe to say I will be going elsewhere” – Jack H.   “The salesperson I spoke with was rude and not very knowledgeable on the product. I regret spending time researching the company but did anyway as they said they were an award winning company. I found this to be inaccurate as well.” – Eline F.

The Takeaway

All Reverse Mortgage is a great option for many people as it offers several products, including HECM reverse mortgages with adjustable or fixed rates. ARLO also has a HECM for purchase option for those who want to buy a new home without monthly mortgage payments and a jumbo option for customers with high-value homes who wish to receive multiple million dollar payouts.

American Advisors Group (AAG)

Best for Additional Resources   Founded in 2004 by CEO Reza Jahangiri, American Advisors Group (AAG) has become the largest reverse mortgage company in the nation, closing more loans than any of its U.S.-based competitors.   AAG offers potential customers several resources to learn about reverse mortgages, as well as available AAG products. An extensive FAQ section, Reverse Mortgage Loan Glossary, and News and Updates section is available on the AAG website, in addition to a reverse mortgage calculator that only requires three pieces of information. Local loan officers can easily be found using the Loan Officer Search page, which also has an option for visitors to subscribe to informational emails. Further, AAG will mail potential customers a free info kit to their home upon their request, which includes a DVD that explains reverse mortgage basics, outlines qualifications, and helps individuals determine whether or not a reverse mortgage is right for them.   American Advisors Group (AAG) Reverse Mortgage Products

*In October of 2021, AAG was accused of making deceptive representations about estimated home values as well as the accuracy of home estimates. For further details, visit the AAG page of the BBB website.

American Advisors Group Highlights

• Considered the largest HECM lender, providing more loans than any of its competitors.
• A three-time finalist for the Southern California BBB Torch Awards for Ethics.
• Rated 9/10 for customer satisfaction according to a September 2021 survey.
• Offers adjustable, fixed rate, and for purchase HECM reverse mortgages as well as fixed-rate jumbo loans for high-value properties.
• Provides several online resources, including a glossary, news and updates articles, and a reverse mortgage calculator.
• Services are widely available and can be accessed in 49 out of 50 states (jumbo loan availability is more limited).
• Potential customers can request a free DVD that explains reverse mortgage basics.

What Customers Like

Customers who are satisfied with American Advisors Group products and services describe the staff they work with as accessible, knowledgeable, and professional, ensuring the process of applying for and receiving a loan is quick and easy. Due to their positive experiences, they highly recommend the company. The following are examples of some positive customer reviews:   “Claire was very professional. Courteous, helpful, pleasant to work with and always optimistic. She made me feel comfortable with the decision I made and I never had any doubts” – Deborah M.   “Everything went pretty smooth in the process of applying for our loan. Anita Gilbert oversaw us through the entire process from beginning to end. She was on top of it and was in contact with us the entire time.” – Brenda L.   “I was thankful for the thoroughness, professionalism, and communication throughout the process of my application. My representative, Mark Pierce, answered all my questions and was truly an advocate for me.” – Warren. J.

What Customers Don’t Like

Reviews that are critical of AAG bring up questionable customer service that reflected badly upon the company. Austin A. writes, “The lady at the front desk has the worst attitude. It’s not good when someone like that is the first impression of a company.”   Additional reviews include claims that calls were not answered or returned and that employees were rude with bad attitudes. Ric H. is one of these customers, writing “I guess my ranking is zero…I tried calling and there is no one there to answer the phone. Was on hold for too long and just hung up. Wow…this day and age there should be a way to leave a message and have someone call back.” Other reviewers, such as one left by Gus R. also found the process of applying for a loan to be lacking clarity: “Not a great experience. Financial depth very disorganized and inefficient. Rep very professional and helpful” – Gus R.

The Takeaway

AAG provides multiple types of reverse mortgages, including adjustable, fixed rate, and for purchase HECM loan options. In addition to this, seniors with high-value properties can select an AAG Advantage jumbo loan to access millions of dollars in equity. With services in all but one state, AAG products are available to a majority of US customers.

Liberty Reverse Mortgage (Liberty)

Best Combined Guarantee    One of the larger HECM lenders in the United States, Liberty Reverse Mortgage has funded $7.5 billion dollars in loans and assisted over 60,000 borrowers. The company is also a member of the National Reverse Mortgage Lenders Association with an A+ Better Business Bureau (BBB) rating, showcasing its dedication to providing customers reliable and quality service while adhering to the strictest ethical and professional industry standards.   This commitment to customers is further shown with the company’s Liberty Iron Clad Guarantee, which ensures that everyone enjoys fair and competitive pricing as well as timely application processing. In fact, if Liberty Reverse Mortgage cannot match or beat the options provided by a competitor, customers will receive a $100 Visa gift card. Further, customers can be confident that their mortgage application will be processed quickly, as Liberty will give customers a $500 credit towards closing costs if loans are not closed within 60 days of submitting an application and completing all additional requirements. Some exclusions apply.   Liberty Reverse Mortgage (Liberty) Reverse Mortgage Products

While licensed in all 50 states, Liberty Reverse Mortgage does not offer consumer-direct retail lending in Hawaii or New York.

Liberty Reverse Mortgage (Liberty) Highlights

• A member of the National Reverse Mortgage Lenders Association with an A+ Better Business Bureau rating.
• Competitive and fair pricing guaranteed – If it cannot match or beat competitors’ programs, customers will get a $100 gift card.
• Guaranteed closing timeline or customers will receive $500 in credits towards closing costs.
• Live agents are available during normal business hours, and customers have access to a dedicated team of professionals.
• A direct lender that does not charge any up-front lender fees.

What Customers Like

Customers who write Liberty Reverse Mortgage positive reviews give details of exceptional customer service by accessible, patient, and informed staff. Mike H. writes, “Liberty has a friendly and very knowledgeable staff. No matter the question(s), they will get you the answer, and quickly!”  Daniel C. also left the company a similarly glowing review: “Totally amazed by the system at Liberty. Very customer oriented. Very careful not to over-offer or under-perform”   Others praise the flexible loan application process and the ease of securing a loan through Liberty. Raymond, another satisfied customer, writes, “The rep that we worked with initially was named Christine. She was very pleasant and patient. We did parts of the process online and parts of it on the phone, and it was easy.”

What Customers Don’t Like

Reviews that were critical of Liberty Reverse Mortgage mention the loan application process being lengthy and complex, with lots of requirements and longer than anticipated wait times. Others mention errors resulting in hefty fees and describe employees as unresponsive, including company supervisors. Examples of negative reviews are included below:   “Continually need letters of explanation from 30 years ago, finally just waiting for the final report from the assessor then no more communication from anyone, not even the supervisors. Attempted to contact anyone for the last 2 months with promises of returned calls, but nothing” – Tina B.   “One hoop after another three months later, 3 more hoops. Really do they read their reviews?” – Dale M.   “Very misleading way too many hoops to jump through” – Mark L.

The Takeaway

Liberty Reverse Mortgage offers its customers flexible, fixed rate, and for purchase HECM options as well as an EquityIQ fixed-rate jumbo loan. The company promises fair and competitive pricing as well as specific loan closing time frames to all customers who qualify under its Liberty Iron Clad Guarantee. The company also offers the option of completing the entire loan application process online.

Finance of America Reverse (FAR)

Best Private Reverse Mortgage Option   Finance of America Reverse, also referred to as FAR, is a Finance of America company. Established 19 years ago, FAR is one of the oldest reverse mortgage lenders in the business and has helped thousands of people secure the funds they need to enjoy their retirement. With an average score of 4.5 stars out of 5 stars, FAR is also a top ranking lender on ConsumerAffairs, with hundreds of reviews overwhelmingly left by satisfied customers.   In addition to government-insured HECM loans, FAR offers HomeSafe jumbo loans for customers with high-value properties, giving them the option of converting equity in their homes to millions of dollars. This HomeSafe jumbo loan comes with no obligation to make monthly mortgage payments or cover mortgage insurance premiums and, in some cases, customers will also have no loan origination fees. It is also available in both fixed-rate and line of credit options, and in some states, available to individuals aged only 55 years old. Further, FAR’s HomeSafe loan comes with access to a dedicated concierge team that will assist customers with whatever they need throughout the term of the loan. For these many reasons, this loan is one of the best private reverse mortgages available.   Finance of America Reverse (FAR) Reverse Mortgage Products

Finance of America Reverse (FAR) Highlights

• One of the oldest reverse mortgage lenders, with 19 years of experience.
• Top rated on ConsumerAffairs and has an A+ Better Business Bureau rating.
• FAR’s jumbo HomeSafe loan is one of the best private reverse mortgages available.
• HomeSafe customers are not required to make mortgage payments or pay mortgage insurance premiums and may not have loan origination fees.
• A concierge team is available to assist HomeSafe customers.
• HECM loans are offered in all 50 states, while HomeSafe loan availability is limited to 28 or fewer states.

What Customers Like

Finance of America Reverse customers praise the organization, knowledge, friendliness and professionalism of its employees. They appreciate that these dedicated professionals work tirelessly to assist customers, often doing more than is required, and are easily reached any time they are needed. Examples of reviews left by satisfied customers are included below:   “They are extremely organized. They are polite to us and they know their products!” – Charles B.   “Finance of America Reverse LLC is an awesome group to work with, they spend a lot of time with you, so you have the best experience. I was told that I could call at any time with any question that crossed my mind, and as often as I wished.” – Sherrie D.   “Hands down, one of the most professional companies I’ve ever worked with. Everyone I have interacted with has been top notch, always going above and beyond.” – Matthew P.   “Best reverse mortgage company out there. Everyone is very professional and is knowledgeable of their products. I recommend them to all my friends and family” – Mj R.

What Customers Don’t Like

Customers who had less than satisfactory experiences with Finance of America Reverse describe the company as being disorganized with employees who are uninformed about their own policies, leading to confusion and delays. Further, some accuse the company of not having their customers’ best interests in mind. As an example, they are alleged to not give elderly homeowners a chance to sell their property before initiating a foreclosure. Read on for some negative reviews left by FAR customers.   “My mom has reverse mortgage and ended up in a nursing home. Within DAYS they filed foreclosure on her home. They take advantage of old people please don’t use them.” – Phyllis S.   “As a real estate agent helping a client that chose this mortgage was a nightmare. The process took twice as long, uninformed of their own procedures, closing delayed over and over, and confusing for the closing attorney with their paperwork.” – Lori C.

The Takeaway

FAR offers federally insured HECM loans as well as jumbo HomeSafe loans. These jumbo loans set the company apart from competitors, as they require no mortgage payments or mortgage insurance premiums and may also come without origination fees, in addition to providing customers the support of a concierge team. HECM loans are offered nationally, while HomeSafe loans are available in 19+ states depending on if customers choose a Select or Standard version.

Mutual of Omaha Reverse Mortgage

Most Helpful Online Tools   Formerly known as Retirement Funding Solutions, Mutual of Omaha Reverse Mortgage was acquired by Mutual of Omaha Bank and later rebranded as a division of Mutual of Omaha Mortgage. The company offers fixed, variable rate, and for purchase HECM loans as well as HomeSafe jumbo reverse mortgages. If customers aren’t sure which option would be best for their situation, Mutual of Omaha Reverse Mortgage provides them with many online tools to assist them during the decision making process. These free calculation tools are all easily accessible on its website.   Available tools include a reverse mortgage calculator and HECM for purchase calculator that estimate benefits customers would receive, as well as a calculator that predicts what customer portfolios would look like after securing a HECM loan and having no mortgage payments. Calculators estimating Social Security benefits are also available to customers who may need them. In addition to this, Mutual of Omaha Reverse Mortgage provides its customers with further support by offering a downloadable mobile app that they can use to manage their loan. This app enables them to work on an application, scan and send paperwork, and connect with specialists or view the location of a specialist’s office.

Get a Free Reverse Mortgage Guide from Mutual of Omaha

Mutual of Omaha Reverse Mortgage Reverse Mortgage Products

Mutual of Omaha Reverse Mortgage Highlights

• An equal housing lender and member of the National Reverse Mortgage Lenders Association (NRMLA).
• Offers fixed, adjustable rate, and for purchase HECM loans in addition to HomeSafe jumbo reverse mortgages.
• Features a helpful website with multiple calculators so customers can see how different loans may benefit them in addition to other information.
• Provides a mobile app so customers can manage loans using their phones as well as call, text, or email a specialist.
• Licensed to offer reverse mortgage services in all states except New York and West Virginia.

What Customers Like

Satisfied Mutual of Omaha Reverse Mortgage customers describe the loan application process as fast and easy and staff as efficient, knowledgeable and dedicated. John writes, “The entire process in dealing with Mutual of Omaha Reverse Mortgage for my reverse mortgage loan was outstanding. My first contact was the loan originator and she sent me a complete outline within 24 hours with all the number work and other information regarding the loan. She kept me informed every step of the way and answered all my questions. All of the staff that I dealt with was great and I would recommend the company and their reverse mortgage products.”   Charles and Madeleine W. were similarly impressed with employees’ hard work and dedication. The couple wrote the following about the company: “Always responsive. No pressure, thorough explanations, and an excellent rate. We will recommend them whenever I am able.”

What Customers Don’t Like

Unfortunately, some other customers didn’t experience the same speed, efficiency, or dedication from Mutual of Omaha Reverse Mortgage employees. Steve writes, “Your staff took 10 weeks to do a 4 week job. The “registered agent” had no clue as to what needed to be done, and erred in many key activities –costing me time and money.”   Mutual of Omaha Reverse Mortgage customers also complain of company disorganization that led to longer than anticipated wait times to receive a loan. George writes “One person did not know what the others were doing. Duplication of many items asked for, many things that later they determined they did not need and general mayhem. We were in business over 45 years, this would not have taken over 7 months to complete. I guess if we did not need the reverse mortgage it would not have been so stressful.”

The Takeaway

Mutual of Omaha Reverse Mortgage offers several products including fixed, variable rate, and for purchase HECM loans and jumbo HomeSafe reverse mortgages. The company sets itself apart with its use of technology to assist customers. Various online calculators help customers estimate benefits and a mobile app enables them to manage loans as well as easily call, text, or email a loan specialist.

Fairway Independent Mortgage Corporation

Fastest Reverse Loan Lender   Fairway Independent Mortgage has been funding loans since 1996, delivering decades of quality service to its customers. It prides itself on having loan officers that can find the very best rates and options as well as delivering the fastest turn times possible. In fact, it tells its customers to expect early delivery of closing documents as well as loan funds and advertises that it operates with some of the fastest speeds in the industry.   Customers can easily find a branch near them by selecting a state on the locations page of the company website and then picking an exact location. This provides images of all branch employees as well as links to their online profiles where users can choose a loan officer to work with and/or begin a loan application. Customers can also use the company’s mobile app to apply for a loan, in addition to tracking loan progress in real-time and contacting loan officers and/or realtors. This ease of locating and contacting staff contributes to the short timeline individuals can expect when applying for a reverse mortgage with Fairway Independent Mortgage Corporation.   Fairway Independent Mortgage Corporation Reverse Mortgage Products

Fairway Independent Mortgage Corporation Highlights

• Searchable branch location database with profiles for all employees, including contact information and the option to apply for a loan online.
• A mobile app enables users to manage loans as well as easily contact company staff.
• Has over 700 branches in 48 states with the option of national in-person appointments.
• Rated a top 10 mortgage company in America by Mortgage Executive Magazine and assigned an A+ rating by the Better Business Bureau (BBB).
• Prioritizes speed of service with among the fastest timing in the industry.
• Offers HECM loans as well as several jumbo reverse mortgage options.

What Customers Like

Many positive reviews for Fairway Independent Mortgage mention exceptional customer service and the kindness and dedication of company employees. James D. writes, “If you want to be comfortable choose Fairway. Janiece is the most kind hearted person ever and understands what life is putting you through. She is super compassionate about her job and will not stop until she feels her job is done.” Shirly H. also comments on the exceptional support she received while working with the company, writing “I had the best experience. Marian Haire was so patient and helpful throughout this process! No matter day or night she was there anytime I had questions. She’s #1 in my book. I couldn’t be happier with Fairway, it’s the way to go!”   Customers also appreciated the personalized service he received in addition to the short timeline. Jultian of Jacksonville, FL writes: “Fairway made everything really easy. They worked with me a lot more than the big banks would. It was a quick turnaround and high communication and the rep I worked with was great.”

What Customers Don’t Like

Some reviews for Fairway Independent Mortgage claim that they received less than satisfactory customer service and spent long times waiting without receiving any feedback from the company. Brian of Somerville, TX writes “It seemed as everything was starting out great, having problems with my debt to income. Someone was telling me how to work through it and then all the sudden nothing. No return calls. No emails except for system emails.”   Other reviewers mention that the company promised but failed to meet certain given deadlines, even charging extra fees for faster service and failing to credit this money back to customer accounts. Michael P. writes, “The process was very invasive and they promised they would close by a specific date and they did not meet that date. They also charged me a rush fee which they promised my agent (my agent has it in text and recorded) that they would credit my account and they never did. I would not do business with this group again.” In response to this review, the company mentioned that there are sometimes events that take place that are outside the Fairway’s control.

The Takeaway

Fairway Independent Mortgage has more than 700 branches throughout 48 states that offer fixed, adjustable, and for purchase HECM loans to customers in addition to jumbo loans. Providing among the fastest service in the industry, Fairway promises its customers early delivery of closing documents and loan funds, making it a great option for those who want to have access to cash quickly.

Longbridge Financial

Best Option for Veterans   Longbridge Financial was founded with the goal to provide unparalleled service, knowledge, and transparency to customers, and their efforts have overwhelmingly been met with success. Longbridge Financial not only has a 4.8 rating on Trustpilot but was named a top-ranked reverse mortgage lender in 2024 by ConsumerAdvocate.org. Further, the business is well-known for its integrity and fully subscribes to the National Reverse Mortgage Lenders Association code of ethics. In fact, it  promises to deliver an honest assessment of whether or not a reverse mortgage program will help customers and to tell them when they believe one is not in their best interests.   In addition to this, Longbridge Financial offers its customers several promises as part of a comprehensive guarantee. These include a pledge that it will strive to close a loan within 45 days of receiving all required paperwork, provide weekly status updates, protect customer information, and have fully transparent pricing without any hidden fees. As a proud supporter of the U.S. military, the company also always offers a $500 discount both to active duty service members and veterans, providing yet a further incentive to prospective customers.   Longbridge Financial Reverse Mortgage Products

Longbridge Financial Highlights

• A member of the National Reverse Mortgage Lenders Association with an A+ Better Bureau rating.
• Offers a comprehensive guarantee promising timely closing, weekly status updates, transparent pricing, and more.
• Provides a $500 discount to active duty service members and veterans of the U.S. military
• Licensed to provide HECM loans in 19 states and Platinum jumbo loans are available in 18 to 24 states depending on the loan type.
• Features a reverse mortgage calculator, an online guide, a FAQ section, and a blog where you can read content as well as ask experts questions.
• A mobile app is also available that provides loan summaries, recent transaction information, answers to servicing questions, and more.

What Customers Like

Longbridge Financial customers who left positive reviews praise the company’s service as well as the reliability and accessibility of its staff. Del S. writes, “Very good experience. We felt we were served well, given good information, could reach out when necessary and always got prompt and accurate responses.”   Pleased customers also appreciated how Longbridge staff were helpful and understanding and assisted them throughout the loan process, problem solving with them when things didn’t go according to plan. Jack B. writes, “Longbridge guided me through the process with good information and made sure that every step along the way was done correctly. I would recommend Longbridge and if I would need another loan I would not hesitate to use them again. Thanks *****!”

What Customers Don’t Like

Negative reviews left for Longbridge Financial mention lengthy wait times, disorganization, and a lack of response to customer concerns. Kark W. McA writes, “It took almost 5 months to refinance a reverse mortgage, and they were the original mortgage holder! Lots of excuses were given, yet phone calls took days for response. They were given my entire tax return and Soc. Security form **** was sent. they claimed to not have my information?! Forms had to be resent again…”   Cherry G also complains of spending a significant amount of time dealing with company representatives who gave inaccurate or confusing information, writing, “More than a month of false promises. I’ve never encountered a company that would say one thing and turn around and say just the opposite. A totally exhausting experience that no one should ever have to go through.”

The Takeaway

Adjustable and fixed rate HECM loans as well as HECM for purchase loans are available in 49 states through Longbridge Financial, while Platinum jumbo loans are available in between 18 and 24 states, depending on the loan. Longbridge promises customers honest assessments, transparent pricing, fast processing, and regular updates as well as offers active duty and retired veterans a substantial discount of $500.

Tips for Seniors Looking for a Reverse Mortgage

1. Check that you meet the basic reverse mortgage requirements. Before you look in-depth at the different options, you should determine whether or not you are a good candidate for a reverse mortgage. To do this, ensure that none of the following statements are true, in which case you may want to consider an alternative option:

• You have sufficient income and/or savings or a life insurance policy that could cover living costs, making a reverse mortgage unnecessary.
• You do not either fully own or have considerable equity in your primary residence, which is generally an eligibility requirement.
• Your heirs may want to inherit and/or live in your property.
• Other family members currently reside in your home who may want to remain in it after the term of your reverse mortgage.

In the case that any of the above apply, you may want to consider a conventional mortgage, a home equity loan or line of credit, or selling or leasing your property.

1. Narrow down your options. If none of the above factors apply, determine the type of reverse mortgage you need. There are three different types to choose from: single-purpose reverse mortgages, HECMs, or proprietary reverse mortgages. Each option has relative strengths and weaknesses, as outlined below:

Single-purpose reverse mortgages are the cheapest option. However, they are only available in some states and may have income restrictions. Further, lenders may restrict what funding can go towards, such as to cover a specific home repair. You will have to see if you live in a state where single-purpose loans are available, as well as determine if you want to use funds for only a limited purpose.   If you want the freedom to choose how to spend loan funds, you may find a HECM to be a better choice. However, HECMs have relatively large up-front costs as well as a set lending limit of $970,800.   Seniors with a high-value property who want to borrow more than the allowable HECM amount should look into getting a proprietary reverse mortgage. However, these types of loans may be riskier as they are not insured by the government and are issued by private companies.

1. Make sure the loan type is offered in the state where you live. Not all companies are licensed to sell their products in every state, so it’s important to assess competitors to see which loan options are available in your state. Also note that companies that offer both HECM and proprietary loans generally offer HECM loans on a wider scale than the proprietary reverse mortgages.

1. Compare company fees and services for the type of loan you want. Reverse mortgage companies may charge varying fees and provide different accompanying services. Some companies may guarantee lower prices or faster assistance, while others may have loan officers who are able to make in-home visits or a mobile app to streamline loan management and communication. Determine what fees you are willing to pay and the services that are most important to you.

1. Solidify your complete understanding of a loan before signing paperwork. It is vital that you ask questions until you fully understand a loan, and never sign paperwork if you are uncertain about policies or terms. This includes making sure you know what your ongoing obligations are for loan compliance and the different ways a loan can become due. This is critical, as seniors who fail to comply with loan terms could lose their house. For example, HECM loans require borrowers to continue to pay property taxes and homeowner’s insurance, as well as satisfactorily maintain the property.

FAQs

Is a reverse mortgage a good idea for seniors?

Reverse mortgages are a good option for seniors who own homes with considerable equity and who do not have heirs that wish to inherit and/or live in the property. Seniors who wish to buy a new property and have the assets necessary to afford the required down payment can also benefit from a “for purchase” reverse mortgage. All borrowers must be able to meet loan requirements, or they may be in danger of violating the terms of their loan and possibly lose their property.

Who is the best reverse mortgage company?

The best reverse mortgage company varies based on an individual’s preferences and circumstances. This is because licensing for each company is unique, and while some companies may provide loans across the country others operate within a more limited area. Further, extra services, support, and assistive technology may or may not be included along with a reverse mortgage program, and seniors will need to decide what features they want or need.

What are the types of reverse mortgages?

Single-purpose loans are offered through local or state governments or other nonprofit organizations, and are often the cheapest but may not be available in all states. Further, funds must typically be used for one specific purpose. HECM loans may have high fees and must comply with set loan limits. However, loan funds can be spent on whatever the borrower wishes. Proprietary mortgages are intended for seniors with high-value properties who need to borrow more than a HECM loan allows and are issued by private lenders.

How much money do you get from a reverse mortgage?

This depends on the type of reverse mortgage. HECM loans have loan limits dictated by the Federal Housing Administration (FHA), but factors such as borrower age and current interest rates also impact how much money borrowers can ultimately receive. In contrast, proprietary reverse loans are not subject to the same government limits, so borrowers can get multiple millions of dollars.

What is the downside to a reverse mortgage?

It is possible to lose your home with a reverse mortgage. For example, if you fail to properly repair your house or fall behind on property taxes or insurance, a reverse mortgage can become due. Even circumstances beyond your control that prevent you from living in your home as your primary residence for more than 12 consecutive months may violate the agreed upon terms of a HECM loan. If it becomes due and you cannot pay it back, you could lose your home.    

Citations 

https://www.hud.gov/sites/dfiles/SFH/documents/nhm_hecm_101_06_28_21.pdf

https://www.hud.gov/program_offices/housing/sfh/hecm/hecmabou

https://www.hud.gov/program_offices/housing/sfh/lender/origination/mortgage_limits#:~:text=For%20CY%202022%2C%20the%20HECM,%2C%20through%20December%2031%2C%202022.

https://reverse.mortgage/2022-limits

https://www.consumeraffairs.com/reverse-mortgages/all-reverse-mortgage-company.html

https://www.investopedia.com/terms/h/hecm.asp

https://www.investopedia.com/mortgage/reverse-mortgage/types/

https://www.forbes.com/advisor/mortgages/reverse-mortgages/

https://www.nasdaq.com/articles/homeowners-are-sitting-on-%249.9-trillion-of-equity.-heres-how-to-make-the-most-of-yours

https://www.investopedia.com/mortgage/reverse-mortgage/payment-plan/

https://www.consumerfinance.gov/ask-cfpb/are-there-different-types-of-reverse-mortgages-en-226/