Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Oct 17, 2023 13 min read

With American Advisors Group (AAG), you’ll find one of the largest variety of options we’ve seen among reverse mortgage companies. Additionally, the company has an abundance of online tools designed to help you educate yourself on the complex subject of reverse mortgages, including a calculator that can give you an idea of how much money you may qualify for.

Not all of AAG’s reverse mortgage products are available in every state, so make sure to verify you are eligible before proceeding.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

  • Largest Reverse Mortgage Lender in the Nation
  • 96% Customer Satisfaction Rating and A+ BBB Rating
  • Available in 49 states, 24/7 to answer your questions

  • Free quote and easy application process
  • All HECM programs available
  • A+ rating with the BBB and HUD approved direct lender and servicer

  • A+ rating with the BBB
  • Competitive pricing on loans due to low overhead
  • All products available - HECM adjustable, HECM fixed, & private jumbo

Best reverse mortgage lender for customer service

We selected AAG because of its positive customer feedback, commitment to education, long-standing good reputation and high-quality offerings. AAG has an A rating from the Better Business Bureau (BBB) with an average of 4.69 out of 5 stars from over 760 reviews. The company also has a good track record for responding to and closing customer complaints.

American Advisors Group reverse mortgages pros and cons

  • Emphasis on customer education
  • Flexible disbursement options
  • Strong reputation and high customer satisfaction
  • Not all homes qualify
  • High cost and fees

Pros explained

Emphasis on customer education

Getting a reverse mortgage is a major financial decision that should not be taken lightly. There has always been controversy and misinformation surrounding the product. A reverse mortgage can be an excellent financial tool for certain older adults provided they understand exactly what they are getting into and what to expect from the process.

To that end, AAG's website provides substantial information on how reverse mortgages work. It does a great job explaining who the product is suitable for and the types of reverse mortgages available. It also addresses frequently asked customer questions. AAG provides dedicated loan officers to guide borrowers through every step of the loan application process and address concerns and questions.

Anyone can request an AAG reverse mortgage information kit to be sent to them at no cost. If you’re still not sure, you can always talk to one of AAG’s home equity specialists to help you through the process.

Flexible disbursement options

The flexible disbursement options allow borrowers to choose the payment method that suits their needs. Some of these choices include lump-sum payments, monthly payments, lines of credit or a combination of any of these.

AAG also offers a reverse mortgage for purchase option. This enables customers to buy a new home using a reverse mortgage. It is ideal for those looking to downsize their homes in order to fit their long term needs.

Strong reputation and high customer satisfaction

As of October 2023, AAG boasts a 4.69 out of 5 rating on the BBB's website. AAG received more than 700 customer reviews. Feedback on other online review platforms highlights thousands of clients praising AAG’s professional and supportive customer experience.

Cons explained

Not all homes qualify

AAG doesn’t offer reverse mortgages on all types of homes. Second homes and vacation properties aren’t eligible. In addition, mobile homes and some condominiums don’t qualify. AAG reverse mortgages are available only for homes that are primary residences. Furthermore, to qualify for an AAG reverse mortgage, homeowners must have substantial equity or own the home outright.

High cost and fees

Getting an AAG reverse mortgage involves several fees, such as origination fees, closing costs, appraisal costs and many others. In some cases, these fees can go into the thousands of dollars, depending on the value of your home.

American Advisors Group reverse mortgage offerings

A reverse mortgage is a type of loan that allows a homeowner to convert a portion of their home equity into cash without selling their home. Unlike a traditional mortgage, in a reverse mortgage the lender makes payments to the homeowner.

Reverse mortgages eliminate the need for making monthly mortgage payments. However, when you pass away, sell your house, or move out, the loan must be repaid by you, your spouse, a co-borrower, or your estate. Homeowners must be 62 years or older to qualify for a reverse mortgage. Below are AAG's reverse mortgage offerings.

Lump-sum payout

A lump-sum payout means you collect proceeds from your home equity in one lump sum. Among AAG's offerings, this is the option that’ll give you the maximum amount of cash. This option allows you to draw 60% of your accessible funds in the first year.

Growing line of credit

A line of credit allows you to tap into funds as needed. Some customers use this as a standby safety net to handle unexpected expenses. A significant feature of the AAG reverse mortgage growing line of credit offering is that the unused principal increases over time, which means the longer the principal goes unused, the more funds you have available.

Jumbo reverse mortgage loan

A jumbo reverse mortgage is a proprietary loan that lets you withdraw up to $4 million in equity. Proprietary loans are private and not backed by government insurance. This jumbo loan is for those with high-value homes. If you opt for this solution, you’ll eliminate your mortgage insurance premium and monthly mortgage payments. However, you’ll continue to pay property taxes and homeowners insurance.

Term or tenure reverse mortgage

Borrowers receive a fixed monthly payment with a term or tenure reverse mortgage from AAG. For the term product, you can select the amount of years you would like to receive payments. With the tenure product, you receive payments as long as you live in the house and comply with AAG’s loan terms.

Reverse for purchase

The reverse-for-purchase product is a good option for homeowners seeking to downsize or right-size. You can use your home's equity to buy a new home and not incur any monthly payments. However, you’ll pay property taxes and homeowners insurance on the new property.

American Advisors Group reverse mortgage pricing

You’ll pay a set of upfront fees when getting any type of reverse mortgage. Included in the reverse mortgage options, AAG offers rolling these costs into your loan amount to reduce out-of-pocket expenses.

Interest rates usually get the most attention, but that's only part of the costs associated with a reverse mortgage. The AAG reverse mortgage calculator found on the website can help you estimate the amount of money you may be eligible to receive before fees. The best reverse mortgage providers will always be 100% transparent about all fees.

Appraisal fee

An appraisal is necessary to assign a value to your home and determine the loan amount. Appraisal fees vary by region, value and home type. According to AAG, the average appraisal fee is $450.

Origination fee

The origination fee refers to the lender's operating expenses associated with originating your reverse mortgage. These fees vary based on the lender and your unique circumstances. However, the Federal Housing Administration (FHA) sets limits on origination fees:

  • For homes valued at less than $125,000 or less, the origination fee limit is $2,500.
  • For homes worth more than $125,000, the lender can charge up to 2% on the first $200,000 and up to 1% of the home's value above $200,000, all totaling up to a maximum fee of $6,000.

Closing cost fees

Closing fees include any of the following:

  • Credit report
  • Flood certification
  • Escrow
  • Document preparation
  • Recording
  • Courier
  • Title insurance
  • Pest inspection
  • Survey

Each of these services ranges from $20 to $30. However, document preparation can be $150 to $800, and recording can cost $75 to $150.

Service fee

There’s usually a service cost that covers the projected cost of serving your account for the life of the loan. FHA caps this fee at $35 monthly, but AAG typically waives it.

Counseling fee

Counseling is a necessary part of the reverse mortgage process. It is intended to protect older adults, who can be a financially vulnerable demographic. Counseling addresses the loan's advantages, disadvantages and eligibility requirements. According to the National Reverse Mortgage Lenders Association (NRMLA), these fees average $125.

Interest rates

AAG interest rates for reverse mortgages could be fixed or adjustable. A fixed interest rate is selected from the onset and remains unchanged through the life of the loan. An adjustable interest rate is tied to a financial market index or margin, such as the London Interbank Offered Rate, or LIBOR. LIBOR is the basis for all Home Equity Conversion Mortgages (HECM) reverse mortgage adjustable rates.

American Advisors Group reverse mortgage financial stability

In March 2023, Finance of America Reverse (FOA) acquired most of AAG's assets. Fitch Ratings, a major credit rating agency, gives FOA a B- rating as of December 2022. A B- rating means that the company can repay its debts, but there is a material risk of default in the future, and its ability to repay is vulnerable to deterioration of business and economic conditions.

American Advisors Group reverse mortgage accessibility


AAG reverse mortgages, like all reverse mortgages, are available to homeowners at least 62 years old. Borrowers must own the home or have substantial equity and use it as their primary residence. Additionally, the home must be in good shape and meet required property standards. You also cannot owe any federal debt, such as taxes or federal student loans. Finally, you must receive counseling from a U.S. Department of Housing and Urban Development (HUD) -approved reverse mortgage counseling agency. These are the bare minimum requirements for access.

Contact information

The AAG website offers multiple opportunities for contact. You can fill out an online form to request an info kit. To get the kit, you’ll need to provide the following information:

  • Full name
  • Street address
  • Phone number
  • Age
  • Estimated property value
  • Mortgage balance to be paid off (if any)

Additionally, you can contact AAG by phone at 800-224-9121. The company can address your questions or concerns 24 hours a day.

User experience

AAG's website provides several helpful features, including a loan calculator, customer testimonials and extensive educational resources. In addition, the website works well on mobile devices and is accessible to those with disabilities.

American Advisors Group reverse mortgage customer satisfaction

As of August 2023, AAG has a 4.69 out of 5 rating on BBB's website from over 700 customer reviews. These ratings point to an exceptionally high level of customer satisfaction. The company has been BBB-accredited since 2005 and currently holds an A rating.

Online review sites also show that AAG has excellent customer service. Most AAG customers comment that their experience was professional and pleasant and that they felt supported.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
With a Reverse Mortgage, you can invest in your future starting today
Work with a licensed AAG (NMLS# 2285) representative today.
Learn More

American Advisors Group reverse mortgage FAQs

What is AAG?

American Advisors Group (AAG) is a financial services company specializing in reverse mortgages. The company is one of the largest and most well-known reverse mortgage lenders in the United States. AAG provides Home Equity Conversion Mortgage (HECM) loans, which the Federal Housing Administration (FHA) insures, offering protections to lenders and borrowers.

How does an AAG reverse mortgage work?

A reverse mortgage is a type of home loan for homeowners who are 62 years old or older. It allows them to turn some of the equity in their home into cash. The home in question should be your primary residence, and you must have substantial equity or you must own the home outright. In some cases you can refinance a reverse mortgage.

Is American Advisors Group (AAG) legit?

AAG is a legitimate and well-established financial services company. AAG has operated since 2004 and is one of the largest and most well-known reverse mortgage lenders. AAG originates Home Equity Conversion Mortgages (HECM) — the more formal name for reverse mortgages — insured by the FHA. In addition, AAG issues HECM securities insured by the Government National Mortgage Association (GNMA or Ginnie Mae).

Are there any restrictions on how I can use my reverse mortgage funds?

No. You can use the funds to pay off debts, supplement your social security and retirement income, make needed home repairs, or to cover any other need you may have.

How we evaluated American Advisors Group reverse mortgage

We looked at a few essential factors when evaluating reverse mortgage lenders, including:

  • Product offerings: We assessed the variety of available products and how they benefit homeowners.
  • Customer reviews: We preferred lenders with strong customer ratings and few complaints.
  • Regulatory actions: We selected companies with few regulatory actions against them, especially ones related to poor customer service or untrustworthy sales and advertising practices.
  • Online presence: We preferred lenders with a robust online presence that informs and engages mortgage borrowers.

Summary of Money's American Advisors Group reverse mortgage review

American Advisors Group (AAG) is a reputable financial services company providing older adult homeowners with reverse mortgages.

As with all loans, you should consider several pros and cons of reverse mortgages before choosing a lender. AAG does a good job of providing educational resources and a professional advisor to guide you through the process. In addition, AAG offers flexible payment options, including a mortgage-free home purchase option. However, not all homes qualify, and there are high costs and fees.

Nevertheless, the Better Business Bureau ratings and thousands of online reviews prove that AAG's customers are pleased with their experience with the company.

AAG is a member of the National Reverse Mortgage Lenders Association. The company’s NMLS ID is 2285.

Ads by Money. We may be compensated if you click this ad.Ad
Get the most out of your Reverse Mortgage with AAG (NMLS# 2285)