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Published: Aug 29, 2023 12 min read

Senior homeowners who’ve paid a significant portion, if not all, of their mortgage loan can access funding through a reverse mortgage. This type of loan doesn’t require monthly payments, as loan repayment isn’t required until you either move out of the home or pass away.

Our Liberty Reverse Mortgage review covers everything you need to know about the lender, including its reverse mortgage offerings, pros and cons and the financial stability of the company. Read on for help deciding whether or not Liberty Reverse Mortgage is the right choice for your reverse mortgage needs.

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Best reverse mortgage loan with no upfront lender fees

If you’ve researched reverse mortgage pros and cons, you’ll find that Liberty Reverse Mortgage is a solid choice for borrowers looking to avoid out-of-pocket costs. What is a reverse mortgage with no upfront lender fees? It means that, unlike most mortgage companies that require borrowers to pay costs associated with loan closing, Liberty Mortgage doesn’t charge these fees upfront. Instead, Liberty Mortgage bundles these costs into the mortgage.

Fees required by most mortgage companies include origination fees, real estate closing costs and mortgage insurance premiums. Paying these costs outright before receiving funding can strain anyone’s budget. However, Liberty Mortgage operates in opposition to this standard, which can be helpful for borrowers who aren’t keen on spending upfront in order to receive their reverse mortgage.

Liberty Reverse Mortgage reverse mortgages pros and cons

Pros
  • No upfront lender fees
  • NRMLA member
  • Reverse mortgage calculator and other resources available
Cons
  • Eligibility requirements
  • Complaints about the application process
  • Not available in two states

Pros explained

Liberty Reverse Mortgage boasts several benefits as a reverse mortgage lender. Pros include a lack of upfront fees and helpful online resources for potential borrowers. Additionally, its National Reverse Mortgage Lenders Association (NRMLA) membership suggests Liberty Mortgage is committed to ethical lending practices.

No upfront lender fees

Liberty Reverse Mortgage does not charge upfront lender fees. Instead, these fees are financed into the mortgage itself. The fees in question include Federal Housing Administration (FHA) mortgage insurance, an origination fee and title and closing settlement fees.

Like with all reverse mortgages, borrowers are required to undergo a counseling session with a reverse mortgage housing counseling agency certified by the U.S. Department of Housing and Urban Development (HUD) before the loan can be processed. This is the only out-of-pocket cost for a reverse mortgage through Liberty Reverse Mortgage. The fee typically ranges from $125 to $200, though some counseling agencies accept financial hardship requests and will offer the service at a reduced rate.

NRMLA member

Liberty Reverse Mortgage is a member of the National Reverse Mortgage Lenders Association (NRMLA). NRMLA membership is optional for reverse mortgage lenders and requires members to adhere to its code of ethics, which emphasizes values such as:

  • Fairness
  • Confidentiality
  • Integrity
  • Competence
  • Diligence
  • Professionalism

Reverse mortgage calculator and other resources available

Liberty Reverse Mortgage allows potential customers to estimate the overall cost of the reverse mortgage loan using its two-step reverse mortgage calculator. First, determine your eligibility by entering your age, your home’s value and your mortgage debt. On the second step, the calculator determines your eligibility amount and performs a property search using personal information, including your name, phone number and street address.

The Liberty Reverse Mortgage site also has a dedicated resources section with links to several organizations. These organizations help aid seniors in making informed financial decisions.

  • Department of Housing and Urban Development (HUD)
  • National Council on Aging
  • Consumer Financial Protection Bureau
  • Fannie Mae

Liberty Reverse Mortgage also offers in-depth blog posts about reverse mortgage fees, reverse mortgage pros and cons and the reverse mortgage application process. Additionally, the company has a free e-book with more information on reverse mortgages available for download.

Cons explained

There are some downsides to Liberty Reverse Mortgage, including customer complaints about the application process. Additionally, like many other reverse mortgage lenders, Liberty Reverse Mortgage has specific eligibility requirements and is not available in every U.S. state.

Eligibility requirements

Liberty Reverse Mortgage eligibility requirements aren’t unlike the requirements of the average mortgage lender, and they correspond with the standards set by the Department of Housing and Urban Development.

Requirements for Liberty Reverse Mortgage borrowers include:

  • Have a certain amount of equity in the home
  • Pay off existing mortgage balance and mandatory obligations at closing
  • Meet financial eligibility criteria set by the HUD
  • Use home as your principal residence
  • Meet the Federal Housing Administration’s minimum property standards
  • Complete a counseling session with a reverse mortgage counselor approved by HUD
  • Own a single-family home or two- to four unit owner-occupied house or other home that meets specific FHA requirements

Note that Liberty Mortgage does offer a jumbo proprietary reverse mortgage product called EquityIQ that carries an age requirement of 55, rather than 62. This type of reverse mortgage is intended for higher-value homes.

Complaints about the application process

While Liberty Reverse Mortgage advertises a simple loan application process, many online reviewers described the application process as being difficult. Some complaints about the application process noted that you must be very computer literate to complete it. Others wrote that the process took months because of the requests for specific financial information.

Not available in every state

Liberty Reverse Mortgage states on its website that it's licensed in all 50 states, but it currently doesn’t offer services in New York or Hawaii. In addition, while Liberty Reverse Mortgage does provide a separate website for New York consumers, its content is for educational purposes only.

Liberty Reverse Mortgage reverse mortgages offerings

Liberty Reverse Mortgage offers three types of reverse mortgages. These include home equity conversion mortgages (HECMs), home equity conversion mortgages for purchase and proprietary jumbo reverse mortgages. Each product has its own purposes, benefits and eligibility requirements — read on to learn more.

HECMs

Liberty Reverse Mortgage offers Home Equity Conversion Mortgages (HECMs) as variable or fixed-rate loans. Funds can be used for any purpose, including to boost your retirement income, consolidate debt or finance a specific purchase. HECMs are only available to homeowners who are 62 or older.

HECMs for purchase

HECMs for purchase loans are tools that help you buy a home without taking out a traditional mortgage and making monthly payments. When you sell your home, you can use the equity to purchase a new property with an HECM for purchase. You only need to pay the down payment and the rest of the loan when you sell the house.

Proprietary jumbo reverse mortgages

Liberty Reverse Mortgage calls its proprietary jumbo loans EquityIQ. EquityIQ is for homeowners aged 55 or older and turns part of the homeowner’s home equity into funding. EquityIQ works with high-value homes and can be a better option than an HECM because, compared to an HECM, it provides easier eligibility for home purchases, access to more funding and lower upfront costs.

Liberty Reverse Mortgage reverse mortgages pricing

Liberty Reverse Mortgage’s prices for reverse mortgage products vary depending on multiple factors, including your age, type of reverse mortgage, market conditions, home value and your current mortgage balance. You can use the Liberty Reverse Mortgage calculator to get an estimate more closely tailored to your situation.

Liberty Reverse Mortgage reverse mortgages financial stability

Liberty Reverse Mortgage, now owned by Ocwen Financial Corporation, was founded in 2004. It began as a start-up and became one of the largest reverse mortgage companies in the U.S. In 2022, the state of Florida sued PHH Mortgage, a subsidiary of Ocwen, for charging illegal service fees on internet mortgage payments. PHH Mortgage agreed to pay a $2.77 million class action settlement.

Despite this, Ocwen Financial Corporation has a stable credit outlook and a B- rating from Standard & Poor’s. Also, in 2022, National Mortgage News named Liberty Reverse Mortgage one of the Best Mortgage Companies to Work for.

Liberty Reverse Mortgage reverse mortgages accessibility

Liberty Reverse Mortgage is a reverse mortgage lender accessible by internet and phone. To receive a reverse mortgage loan through Liberty Reverse Mortgage, you must meet the eligibility requirements listed on its site.

Availability

Liberty Reverse Mortgage is currently available in every state except New York and Hawaii.

Contact information

To contact Liberty Reverse Mortgage, you can call, email or fax a representative.

  • Phone: 1 (866) 871-1353
  • Fax: 1 (866) 375-6139
  • Email: lendersupport@libertyreverse.com

User experience

Online customer reviews for Liberty Reverse Mortgage are mostly positive. The favorable reviews reference patient and helpful customer service representatives who walked customers through the entire process. Those customers with complaints wrote about the large amount of paperwork needed to apply and the long processing times.

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Liberty Reverse Mortgage reverse mortgages customer satisfaction

Liberty Reverse Mortgage is accredited by the Better Business Bureau (BBB) with an A+ rating. However, there are very few positive or negative reviews for Liberty Reverse Mortgage on its BBB listing. The few complaints submitted mention difficulty reaching customer service representatives. On other third-party review sites, reviews are generally positive.

Liberty Reverse Mortgage reverse mortgages FAQ

Is Liberty Reverse Mortgage legit?

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Liberty Reverse Mortgage is a legitimate reverse mortgage lender. It was founded in 2004 and, as of 2020, has assisted more than 74,000 customers in getting access to their home equity. Liberty Reverse Mortgage offers HECMs, HECMs for purchase and proprietary jumbo reverse mortgage products.

Who owns Liberty Reverse Mortgage?

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Liberty Reverse Mortgage was originally founded by Scott Hanson and Pat McClain in 2004. Currently, it is owned by Ocwen Financial Corporation, which also owns PHH Mortgage.

What are Liberty Reverse Mortgage's eligibility requirements?

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To receive a reverse mortgage loan through Liberty Reverse Mortgage, you will need to meet the standard eligibility requirements for reverse mortgages. To qualify, you must be 62 or older, have a certain amount of equity in your home and pay off any existing mortgage balance and any other obligations at closing. Additionally, the home must be your principal residence. A complete list of eligibility requirements is available on Liberty Reverse Mortgage's website.

How we evaluated Liberty Reverse Mortgage reverse mortgages

We considered multiple criteria while reviewing Liberty Reverse Mortgage:

  • Offerings: We looked at the financial products offered by the reverse mortgage lender.
  • Loan pricing and fees: We checked how the lender calculates loan pricing and which fees are included in the costs.
  • Application process: We took into account how potential customers can apply for a reverse mortgage.
  • Eligibility requirements: We considered what qualifications potential borrowers need to get approved for a loan.
  • Accessibility: We considered who can access Liberty Reverse Mortgage and which states it is available in.
  • Customer service: We looked at the efficiency of customer service and the channels customers can use to contact representatives.
  • Third-party rankings: We took into account how third-party sites like the BBB rated the lender.
  • Customer reviews: We researched how customers reviewed the reverse mortgage lender through online platforms and review sites.

Summary of Money’s Liberty Reverse Mortgage reverse mortgages review

Liberty Reverse Mortgage provides HECMs, HECMs for purchase and proprietary jumbo reverse mortgages called EquityIQ. Some positives that come with using Liberty Reverse Mortgage as your reverse mortgage lender include the nonexistent upfront fees, the amount of educational resources it provides and its available reverse mortgage calculator.

On the other hand, Liberty Reverse Mortgage has strict eligibility requirements, customer complaints about its application process and limited availability.

If you want to learn about other reverse mortgage lenders that may suit your needs, check out our guide to the best reverse mortgage companies.

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