Best Reverse Mortgage Companies of December 2024

Money’s reverse mortgage main takeaways

• A home equity conversion mortgage is a home loan designed for homeowners aged 62 and older who want to take advantage of the equity they’ve accumulated in their home.

• One of the advantages of a reverse mortgage is that the borrower doesn’t have to make monthly payments to repay the loan. Instead, repayment is postponed until the homeowner no longer lives in the home full-time, sells the property or passes away.

• Interest does accrue on the loan balance, which means the repayment amount due can be significantly higher than the loaned amount, depending on how long the reverse mortgage is held.

• There are upfront costs to reverse mortgages, including reverse mortgage counseling fees, origination fees, real estate closing costs and insurance premiums.

• Reverse mortgage lenders require borrowers to have homeowners insurance, maintain the property in good condition and pay all property taxes. Failure to meet any of these requirements can lead to foreclosure.

• The Federal Housing Administration (FHA) approves select lenders to offer reverse mortgages, so you may find that your options are more limited than they would be if you were seeking a loan to purchase a property.

Our Top Picks for Best Reverse Mortgage Companies

• Fairway Independent Mortgage Company: Best for homebuyers
• Finance of America Reverse: Best for product variety
• Guild Mortgage: Best for customer service
• Longbridge Financial: Best for low interest rates

Best reverse mortgage reviews

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Why we chose this company: We chose Fairway Independent Mortgage as best for homebuyers because the company has particular experience offering HECMs for purchase.

Here’s how Fairway’s reverse mortgage for purchase works: you use your own funds to make a down payment on a new home and use the proceeds from the reverse loan to complete the purchase.

Fairway’s down payment requirements are much higher than those for a home purchase with a conventional loan. You must put between 30% and 70% of the sales price down. The exact percentage will depend on factors such as the age of the youngest borrower, the purchase price and the current interest rate.

Moreover, Fairway says it can close an HECM for purchase in as little as 15 days because of its streamlined process, though its average is 30 days. That’s still a far cry from the 45 to 90 days most lenders quote — and for seniors on a tight timeline, the quick funding might just be a game-changer.

Fairway offers multiple HECM products, including an equity conversion mortgage that allows you to receive a portion in cash and a jumbo reverse mortgage for those who own high-value properties.

For more information, read our full review of Fairway Independent Mortgage.

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Why we chose this company: Finance of America Reverse (NMLS #2285) has something for just about everyone, with several mortgage options.

FAR offers the popular HECM reverse mortgage and HomeSafe jumbo loans up to $4 million. Another loan product is the HomeSafe Second reverse — a second mortgage that allows homeowners to tap into the equity they’ve built up in their homes without making additional monthly payments.

FAR recently acquired American Advisors Group (AAG), the largest reverse mortgage lender in the country, ranked by volume. FAR has integrated AAG's line of reverse mortgage products into its own. For more information, read our full review of Finance of America Reverse.

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Why we chose this company: Guild Mortgage (NMLS #3274) is our pick for the lender with the highest customer satisfaction among the lenders we considered.

Guild has stellar ratings for customer service; in the 2024 J.D. Power Mortgage Servicer Study, Guild was ranked fourth out of 34 lenders, scoring 673 points out of 1,000.

The lender recently launched Flex Payment Mortgages, a suite of reverse mortgage products that include traditional HECMs, HECMs for Purchase, and jumbo loans. As with all reverse mortgages, the loan is not due until you move, sell the home, or pass away. However, you can make occasional payments to keep the loan balance more manageable.

Guild also offers the option of refinancing an existing conventional loan into a reverse mortgage, allowing you to eliminate your monthly mortgage payments. Or, you can refinance your current HECM into a new one with better terms. Guild's reverse mortgage loan options are available in all states except for Massachusetts.

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Why we chose this company: Longbridge Financial, LLC (NMLS #957935) is our top reverse mortgage lender. It consistently offers some of the lowest interest rates among the companies we reviewed.

Longbridge offers a standard reverse mortgage and HECMs for purchase. With the latter, you use cash-on-hand or the proceeds from the sale of your home to make a down payment on the new property; the proceeds from the HECM for purchase then cover the balance. The down payment requirement, however, is a hefty one – 60% to 65% of the sales price, which is higher than the minimum requirement set by some competitors.

Borrowers in areas with high property values can apply for the lender's proprietary Longbridge Platinum loan, which is a jumbo reverse mortgage with a maximum loan limit of $4 million. This program is available to homeowners as young as 55.

The company also has great customer reviews and few complaints regarding its loan officers, and it remains your servicer after closing — meaning you'll do business with the same company for as long as you have the loan. For more information, read our full review of Longbridge Financial Reverse.

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Other companies we considered

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All Reverse Mortgage

All Reverse Mortgage (NMLS #13999) would have made our list because it offers some of the lowest interest rates on the market. Its proprietary All Reverse Loan Optimizer (ARLO) software compares different loan products, instantly determines eligibility and provides real-time rate quotes. The company is family-owned and operated and has a nearly perfect five-star rating with the BBB.

For more details, read our full review of All Reverse Mortgage.

Why we didn't choose it: Its geographic service area—just 13 states—was too small. However, the company is worth a look for consumers in the states it serves (California and Texas, to name a few).

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American Senior/HighTech Lending

American Senior (NMLS #7147), the reverse mortgage arm of HighTech Lending, offers the standard reverse mortgage options — HECM, HECM for purchase and jumbo loans. Their interest rates are competitive, but other companies offer lower rates. American Senior offers a loan where you can refinance a reverse mortgage into another one.

Why we didn't choose it: American Senior might have made the list, but its lack of reviews on Trustpilot and the BBB and small reach (25 states and the District of Columbia) held it back.

For more details, read our full review of American Senior/HighTechLending.

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Liberty Reverse Mortgage

Liberty Reverse Mortgage — also called Liberty Home Equity Solutions (NMLS #2726) — was the fourth largest reverse mortgage loan originator by volume in 2023. The company offers both standard and HECMs for purchase, which goes up to $4 million and is available for borrowers 55 and up. The lender also offers some of the lowest rates on the market.

For more details, read our full review of Liberty Reverse Mortgage.

Why we didn't choose it: Liberty's main drawbacks are due to its parent company — PHH Mortgage/Ocwen — which was sued by the state of Florida in 2020 for servicing failures, including overcharging for property inspections.

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Nationwide Equities Corporation

Nationwide Equities Corp. (NMLS #1408) has solid reviews and a full suite of reverse mortgage options, including standard loans, HECMs for purchase, a unique N.Y. Co-op reverse mortgage and reverse mortgage refinancing.

Why we didn't choose it: Their small reach (13 states and the District of Columbia) and allegations of deceptive advertising from the CFPB in 2021 pushed the company out of the running.

For more details, read our full review of Nationwide Equities Corporation.

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Reverse mortgage guide

• How to choose a reverse mortgage lender
• What is a reverse mortgage?
• How does a reverse mortgage work?
• Types of reverse mortgages
• Reverse mortgage pros and cons

Reverse mortgage programs are complicated products. While they don’t require traditional monthly mortgage payments, they are a debt and need to be repaid eventually.

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How to choose a reverse mortgage lender

Choosing the right reverse mortgage lender is critical, so be sure to shop around and consider at least a few options before moving forward.

When choosing a mortgage lender, you should:

• Consider the different types of reverse mortgages. Carefully consider all the reverse mortgage loan options and learn about the pros and cons of each one. Knowledge of available loans and how they are best used will help you find the right reverse mortgage — and lender — for your personal finance goals.

• Look for lenders that are National Reverse Mortgage Lenders Association (NRMLA) members and FHA-approved. The NRMLA has an established designation — and corresponding code of ethics — for lenders offering reverse mortgages. It also provides educational resources for consumers on the pros and cons of this type of loan. You can also use the FHA's locator tool to find approved reverse mortgage lenders in your area.

• Get quotes from different lenders. Reverse mortgage companies' pricing can vary quite a bit, so it's important to get quotes from several lenders to ensure you get the best deal.

• Compare rates and fees. Review each lender's loan estimate. Pay particular attention to the interest rate and any upfront costs, origination fees, closing costs, servicing fees or mortgage insurance premiums.

• Read customer reviews and ratings. Look for companies with A+ ratings or higher. The Better Business Bureau and Trustpilot are great resources for gauging customer sentiment about a company. Be wary of aggressive sales tactics. Heed these tips for avoiding reverse mortgage scams, and if something feels off or suspicious, report the lender to the Federal Trade Commission and your state’s attorney general.

What is a reverse mortgage?

Reverse mortgage funding is a type of loan for older homeowners — generally, those aged 62 and up (though some lenders allow borrowers to be as young as 55). It is essentially a home equity loan with unique repayment terms.

Like a home equity loan, a reverse mortgage allows borrowers to turn their home equity, or the increase in the home’s property value, into cash. This money is typically used to supplement Social Security and other retirement income, cover aging-in-place costs, pay for home repairs or improvement projects, or reduce monthly housing expenses. Depending on the type of HECM, reverse mortgage disbursements can be a one-time lump sum payout, periodic installments or monthly payments, a line of credit, or any combination of the three.

For more details, read Money’s reverse mortgage guide.

How does a reverse mortgage work?

You can take out a reverse mortgage on several types of real estate, including a single-family home, a multi-unit property you currently live in, a townhouse or a condo (with HECMs, it must be an FHA-approved condo). The reverse mortgage application process is similar to a purchase or refinance loan.

Unlike what happens with a traditional mortgage, where you have to make monthly payments, your reverse mortgage loan balance won’t come due until you pass on, sell the home or move out of the home for at least 12 months — to an assisted living facility, for example. In the case of your passing, your heirs would be responsible for repaying the lender out of your estate or, if that’s not possible, via their own cash or by selling the property.

Reverse mortgage qualifications

To get a reverse mortgage, you must own your home outright or have built up enough equity so that the proceeds from the loan cover your remaining mortgage balance. You will also need enough income to continue paying property taxes and homeowners insurance and maintaining the home properly. Reverse mortgages don’t have minimum credit score requirements, so you don’t have to worry if yours isn’t that high.

Reverse mortgages are not ideal if you struggle to cover these costs, your home’s value has decreased significantly or you’re not planning to stay in the home for the long term. Before deciding, ensure you understand all the pros and cons of a reverse mortgage.

Reverse mortgage rules

Reverse mortgage qualifications vary by loan program and provider but typically follow a set of rules.

For HECMs:

• Meet the minimum age requirement of 62

• Have a substantial amount of equity in the home

• The house must be your primary residence

• Complete the mandatory, in-person reverse mortgage counseling with a non-profit housing counseling agency

• Stay current on home maintenance, property taxes, HOA fees and homeowners insurance premiums

For proprietary jumbo loans:

• Meet the minimum age requirement of 55

• Meet lender credit and income standards

• Have enough equity in your home

Selling a house with a reverse mortgage

Like other mortgages, a reverse mortgage uses your home as collateral. So when you sell the home, the loan amount, plus interest, comes due, and you must use the proceeds to pay off the balance. This is true whether you sell the house or your heir does after you pass.

HECMs and many proprietary mortgage loans have non-recourse clauses. This means that if you default on the loan, you won’t owe more than the home's sales price.

How to get out of a reverse mortgage

With most reverse mortgage loans, you have what’s called a right of rescission. Legally, this means you have up to three business days after closing to cancel a reverse mortgage and get your money back, including closing costs. You’ll have to notify your lender in writing if you plan to cancel, so make sure to send it via certified mail. This will alert you once it’s been received. (Note: There is no right of rescission with HECM for purchase loans unless your state specifically offers it.)

You can also get out of a reverse mortgage by refinancing into a new reverse mortgage or a conventional loan. If you're considering this strategy, follow these mortgage refinance steps.

Types of reverse mortgages

There are four types of reverse mortgages: Home Equity Conversion Mortgages (or standard reverse mortgages), proprietary reverse mortgages and single-purpose reverse mortgages.

Here’s how those differ:

• HECMs: Reverse mortgages insured by the federal government — specifically the Federal Housing Administration — and issued by FHA-approved lenders.

• HECM for purchase: Government-backed loans designed solely for purchasing a home versus leveraging the equity in one you already own.

• Proprietary reverse mortgages: These are private mortgage loans unique to the lender offering them. Some lenders call them jumbo reverse mortgages, which usually have higher limits than standard reverse mortgages.

• Single-purpose reverse mortgages: The loan proceeds from single-purpose reverse mortgages can only be used for one specific purpose — such as covering home improvements or paying property taxes.

Reverse mortgages can also have either an adjustable or fixed interest rate. With an adjustable rate, your interest rate can change over time, while fixed-rate loans have a consistent rate for the entire loan term.

Reverse mortgage pros and cons

Reverse mortgages can be a handy product in retirement, but they have some notable drawbacks, including the possibility of foreclosure. Here’s a quick look at both the good and bad for these unique mortgage products.

As you can see, reverse mortgages have risks. Talk to a financial professional for personalized guidance if you’re unsure whether one is right for your scenario. They can help you determine the best way to achieve your retirement goals.

Reverse mortgage alternatives

Reverse mortgages have strict eligibility requirements and aren't appropriate for all homeowners. Whether you're looking to reduce your expenses or get cash to pay for medical care, one of the following alternatives may be a better fit:

Sell your home

This option is best for those who want to downsize or who need a more accessible home. For example, if you currently live in a large two-story home and need a one-story rancher due to mobility issues, selling your existing home and purchasing a new one with the proceeds can be a smart decision.

If you sell your current home first, you can benefit from the equity by receiving the added value in cash. You can then use the proceeds to fund the purchase of the new property. If you are moving to a smaller or less expensive home, you could even walk away with some extra cash.

Traditional refinancing

Refinancing a mortgage to adjust the rate and term can be a smart idea for those who are relatively young and still have a mortgage. Depending on when you bought the home, you may be eligible for a lower rate, and you can change the loan term to get a more affordable payment.

Apply for a home equity loan or home equity line of credit (HELOC)

If you have established equity and your home is worth more than you owe, you may be eligible for a home equity loan or HELOC. These approaches tend to have a lower cost than reverse mortgages since you can decide exactly how much you want to borrow, and the balance decreases over time.

Reverse mortgage news

In November, the Federal Housing Administration announced that the HECM limit for 2025 would be $1,209,750, up from $1,149,825 in 2024 — a 5% increase. The change is significant, considering that older people tend to have higher equity levels than other homeowners and are more likely to own their homes outright.

Higher limits translate into a larger cash reserve that older homeowners can tap into if they run into financial difficulties or want to make home improvements that will allow them to age in place. As it stands today, most homeowners have gained an average of $30,000 in equity each year since the start of the pandemic, a significant amount of tappable income.

According to a recent study by LendingTree, there are currently 10.5 million homeowners aged 65 or more who still carry a mortgage. Converting these loans into an HECM could be a reasonable alternative to other options like home equity loans and lines of credit.

How we evaluated the best reverse mortgage companies

When evaluating reverse mortgage lenders, we considered a variety of factors, including:

• Products offered: We looked for companies with various loan options, including fixed- and adjustable-rate loans, jumbo loans and loans for homeowners under age 62.

• Customer reviews: We favored lenders with strong customer ratings and few complaints.

• Regulatory actions: We favored companies with few regulatory actions against them — particularly actions that pertain to customer service and sales/advertising practices.

• Geographic accessibility: We considered companies' geographic reach and favored those that serviced the most U.S. states and territories.

• Online presence: We looked for lenders with robust web presences that inform and engage potential reverse mortgage borrowers.

Some of the resources we used when determining our best reverse mortgage lenders include:

• Nationwide Mortgage Licensing System (NMLS)

• Better Business Bureau (BBB)

• Trustpilot

• U.S Department of Housing and Urban Development (HUD) HECM loan data

• Consumer Financial Protection Bureau (CFPB)

• Federal Trade Commission (FTC)

• National Reverse Mortgage Lenders Association (NRMLA)

Summary of Money’s Best Reverse Mortgage Companies of December 2024

Companies are listed in alphabetical order:

• Fairway Independent Mortgage Company: Best for homebuyers:
• Finance of America Reverse: Best for product variety
• Guild Mortgage: Best for Customer Service
• Longbridge Financial: Best for low interest rates