Best Reverse Mortgage Companies: As more and more retired homeowners need to tap into home equity as a supplemental financial resource, the mortgage industry is focusing more on reverse mortgages. Home equity is often a senior homeowner’s most important asset, and they can access it through a reverse mortgage to use for almost any personal expense.
6 Best Reverse Mortgage Companies in 2024
01. Fairway Independent Mortgage
Rating: 5.0
Days to close: 17 days
Availability: On a national scale
Online applications: Yes
Compare rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s opinion: Fairway Independent Mortgage is among the nation’s top retail reverse mortgage lenders. According to the company’s website, closing a reverse mortgage with Fairway can take as little as 17 days. This is faster than all the other reverse mortgage lenders we evaluated.
Pros:
# Offers a variety of reverse mortgage options.
# Apply online and through the company’s mobile application.
# The mobile app offers an option to securely scan and upload documents and communicate with loan officers.
Cons:
# Lacks a fully online application process.
# No live customer service hours on weekends.
# Does not publish rates or charges online.
Lender details:
# Availability: Fairway is licensed in Washington DC and all 50 states, but New York will not accept applications for in-state reverse mortgages through the Fairway website.
# How to apply: Complete a basic information form online and a lender will contact you. Once you move forward with the process, you can upload documents online or from your phone through the FairwayNow app. Live customer service is available by phone Monday through Friday, 8:30 a.m. to 5:30 p.m. CT.
# Speed: If you apply for a home equity conversion mortgage (HECM) for purchase, you may be able to close in as little as 17 days in some states, according to the website.
# Types of loans: Fairway offers a variety of reverse mortgage products, including jumbo reverse mortgages up to $4 million. Borrowers can choose to make fixed monthly advances over the life of the loan, over a set period, as repayment of a line of credit, or a combination of all three options.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
02. Omaha Mutual Mortgage
Rating: 4.9
BEST FOR CUSTOMER SERVICE
Days to close: 45 days
Availability: 49 states and Washington DC
Online applications: No
Compare rates: On the Mutual of Omaha website
Editor’s opinion: Mutual of Omaha Mortgage has high ratings online, and many borrowers praise the company’s customer service. In 2023, Mutual of Omaha formed a strategic partnership with estate planning firm ePIC Services Company to drive the growth of its reverse mortgage operations and provide an enhanced customer experience. The company offers a variety of reverse mortgage options to help its senior clients navigate life transitions.
Pros:
# Reverse mortgage professionals are available 24 hours a day, 7 days a week, all year round.
# Does not charge any service fee on any of its HECMs.
# Strong customer ratings.
Cons:
# Does not offer a complete online application process.
# Does not advertise a single-purpose reverse mortgage option.
# The website does not disclose the rates and fees borrowers can expect.
Lender details:
# Availability: Mutual of Omaha Mortgage is not licensed to do business in New York or West Virginia.
# How to apply: Download Mutual of Omaha’s free reverse mortgage loan guide and call a reverse mortgage advisor to discuss your specific situation and conduct a free financial review. Once you provide your counselor with your HUD Reverse Mortgage Counseling Session Certificate of Completion, you can submit your application and the required documentation. Alternatively, you can begin the process through the Mutual of Omaha H4P mobile app. Live customer support is available 24/7/365.
# Speed: Mutual of Omaha states that the timeline from application to closing for a reverse mortgage can take up to 45 days.
# Types of loans: Mutual of Omaha offers a variety of reverse mortgage products, including HomeSafe, which allows qualified borrowers to access up to $4 million. Also offers reverse mortgage refinancing. You can choose to receive your disbursement as a line of credit, a lump sum, fixed monthly payments, or a combination of all three.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
Also Read: The All Best Mortgage Lenders
03. Guild Mortgage
Rating: 4.8
BEST FOR A WIDE LENDING NETWORK
Days to close: Does not reveal
Availability: 49 states and Washington DC
Online applications: Yes
Compare rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s opinion: Guild Mortgage has an extensive network of partnerships with credit unions, community banks, and other financial institutions, allowing the company to operate in 49 states and Washington, DC. Additionally, the company expanded its reverse mortgage team and acquired top-tier reverse mortgage lender Cherry Creek Mortgage in 2023, allowing Guild Mortgage to serve more borrowers nationwide.
Pros:
# Offers a variety of reverse mortgage options.
# Expansion of the reverse mortgage division and the offering of reverse mortgage loans.
# Licensed to operate in most states.
Cons:
# Does not advertise a single-purpose reverse mortgage option.
# Does not offer HomeSafe reverse mortgage loan products.
# No live customer service hours on weekends.
Lender details:
# Availability: Guild Mortgage is available in 49 states and Washington DC; is not licensed to conduct business in New York.
# How to apply: Before applying, please discuss any questions you may have with a Guild Mortgage loan officer. After the lender provides you with a personalized proposal that outlines the amount you could qualify for, expected costs, and other vital elements of the loan, you can complete an initial online application. Live customer service for general loan assistance is available by phone Monday through Friday, 5 a.m. to 5 p.m. PT.
# Speed: Guild Mortgage offers a Fast Closing Guarantee program for homebuyers that promises to close loans in 17 days; However, reverse mortgages are not among the eligible loan types. The lender does not provide an average closing time for its reverse mortgages, but it typically takes between 30 and 45 days.
# Types of loans: Guild Mortgage offers a variety of reverse mortgage products, including jumbo reverse mortgages up to $4 million and reverse refinancing. You can choose to receive your disbursement as a line of credit, a lump sum, fixed monthly payments, or a combination of all three. You also have the option to change how you receive funds at any time during the life of the loan for a small fee.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
Also Read: The All Best Mortgage Lenders
04. Finance of America Reverse
Rating: 4.4
BEST FOR REVERSE MORTGAGE LOAN VARIETY
Days to close: 30 days
Availability: On a national scale
Online applications: No
Compare rates: Compare rates from participating lenders in your area
Editor’s opinion: Finance of America Reverse offers a range of unique and varied reverse mortgage products for senior homeowners who want to access their equity and increase their financial freedom. Its product line includes HomeSafe Standard and HomeSafe Second reverse mortgages, plus a unique retiree mortgage option called EquityAvail.
Pros:
# It offers numerous types of reverse loans to fit a variety of borrower situations.
# Provides general customer support on Saturdays.
# High customer ratings.
Cons:
# It does not disclose fees, terms, closing costs, or lender interest rates on its website.
# It does not appear to offer a single-purpose reverse mortgage option and a representative was unable to confirm this.
# Borrowers cannot apply online.
Lender details:
# Availability: Finance of America Reverse is licensed in all 50 states, but New York will not accept applications for mortgages located in the state through the Finance of America website. General customer service is available Monday through Friday, 6:00 a.m. to 6:00 p.m. PST. Although not listed on the website, a customer service representative confirmed that live customer service is also available on Saturdays from 8 a.m. to 12 p.m. PT.
# How to apply: Complete a short online questionnaire and a representative will contact you.
# Speed: The time from application to closing can take between 30 and 45 days; Customers have reported closing their loans in 30 days.
# Types of loans: Finance of America offers numerous types of reverse loans, including private loans that are tailored to borrowers’ particular situations. These loan products include HomeSafe, which allows borrowers up to age 55 to obtain a reverse mortgage; HomeSafe Second, an alternative to obtaining a home equity line of credit for eligible borrowers age 55 and older; and EquityAvail, designed for retirees who want to refinance but are not eligible for reverse mortgages.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
05. Longbridge Financial
Rating: 4.1
BEST FOR YOUNGER REVERSE MORTGAGE BORROWERS
Days to close: 45 days
Availability: On a national scale
Online applications: Yes
Compare rates: Compare rates from participating lenders in your area
Editor’s opinion:
Longbridge Financial offers its Platinum Mortgage, which is a reverse mortgage that offers more cash and has a lower minimum age requirement (55) than a standard HECM mortgage. This makes it an excellent option for borrowers looking to access their capital before age 62. Longbridge is a nationwide full-service reverse mortgage lender and servicer. It is one of the top three holders of newly issued HECM mortgages in the country.
Pros:
# Offers a proprietary, non-government reverse mortgage product for borrowers age 55 and older.
# Eligible military service members and veterans may receive an appraisal credit of up to $500 of allowable closing costs.
# High customer ratings.
Cons:
# Does not advertise a single-purpose reverse mortgage option.
# Does not offer a complete online application process.
# No live customer service hours on weekends.
Lender details:
# Availability: Longbridge Financial is licensed in all 50 states, but New York will not accept applications for in-state reverse mortgages through the Longbridge website. Live customer service is available by phone Monday through Thursday, 8 a.m. to 8 p.m. ET, and Fridays from 8 a.m. to 5 p.m. ET.
# How to apply: Order your lender’s free reverse mortgage information kit online and contact a reverse mortgage specialist to discuss whether a reverse mortgage is right for you. Alternatively, you can use a Longbridge Financial calculator to receive a free online quote and a loan officer will contact you with more details. Once you provide your loan counselor with the certificate of completion of your HUD-approved reverse mortgage counseling session, you can submit your application and the required documentation.
# Speed: Longbridge Financial aims to close your loan within 45 days of receiving your application and advice certificate.
# Types of loans: Longbridge Financial offers a variety of reverse mortgage products, including the company’s proprietary Platinum Mortgage, a jumbo reverse mortgage that allows homeowners age 55 and older to borrow up to $4 million. You can receive your loan money as a line of credit, a lump sum, fixed monthly payments, or a combination of all three options.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
Also Read: The All Best Mortgage Lenders
06. All Reverse Mortgages, Inc.
Rating: 4.1
BEST EXPERIENCE FOR ONLINE APPLICATIONS
Days to close: 30 days
Availability: 15 states and Washington DC
Online applications: Yes
Compare rates: Compare rates from participating lenders in your area
Editor’s opinion:
If you are considering a reverse mortgage for the first time and prefer a comprehensive online application experience, All Reverse Mortgage (ARLO) may be a good option. You can receive an instant quote and get real-time interest rates along with personalized advice on which reverse mortgage program works best for you. The company also maintains a comprehensive blog and has several reverse mortgage calculators that can be helpful when searching for a loan. Their Ask ARLO platform allows you to receive up-to-date answers to your questions in real-time from a reverse mortgage specialist.
Pros:
# Provides a simple and comprehensive online application experience.
# Closing times can be relatively quick.
# Posts current reverse mortgage rates on its website.
Cons:
# Only licensed in 15 states.
# Does not offer single-purpose reverse mortgage loans.
# Does not operate from any physical branch.
Lender details:
# Availability: ARLO is licensed in Washington DC and the following 15 states: Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Virginia, and Washington.
# How to apply: You can receive an instant rate quote online. You will then complete an extensive application in which you will select the reverse mortgage you want, enter financial, credit, and property information, and provide the status of your HUD-approved reverse mortgage counseling. Live customer service is available Monday through Thursday, 8 a.m. to 8 p.m. ET, and Fridays from 8 a.m. to 5 p.m. ET.
# Speed: ARLO can close reverse mortgages in 30 days. However, the lender notes that the term is usually longer (between 30 and 45 days, on average) for various reasons. You can help speed up the process by fulfilling the mandatory counseling obligation promptly and submitting a complete application with all required documents.
# Types of loans: ARLO offers a variety of reverse mortgage products, including reverse mortgage refinancing, reverse jumbo mortgages, and other exclusive reverse mortgage loan programs. You may receive the loan funds as a line of credit, a lump sum, fixed monthly payments, or a combination of all three.
| Reverse Mortgage Options | Yes | No |
|---|---|---|
| HECM | √ | |
| HECM to buy | √ | |
| Single purpose | √ | |
| Owner/Jumbo | √ |
How to Choose a Reverse Mortgage Lender
When selecting a reverse mortgage lender, consider the following steps:
- Consult a Reverse Mortgage Advisor: For Home Equity Conversion Mortgages (HECMs), consulting with a HUD-approved reverse mortgage advisor is mandatory. Advisors can help you understand the details of the loan and evaluate if it fits your needs.
- Compare Lenders: Look for the best rates and deals by comparing multiple lenders. Consider the interest rates, fees, and terms each lender offers.
- Specialized Lenders with High Ratings: Choose lenders that specialize in reverse mortgages and have high customer ratings. Reviews and ratings can provide insights into the lender’s reliability and customer service.
- Membership in the National Reverse Mortgage Lenders Association (NRMLA): Check if the lender is an active member of the NRMLA, which sets ethical standards for the reverse mortgage industry.
- Loan Servicing: Find out who will service your reverse mortgage loan and what the associated servicing costs will be. The loan servicer handles the disbursement of funds and the repayment process.
- Customer Support and Resources:
# Consider the lender’s customer support availability, branch locations, online application capabilities, and digital resources. Good customer service can make the process smoother and more transparent.
What is a Reverse Mortgage and How Does it Work?
A reverse mortgage is a loan for homeowners aged 62 or older (or younger with some proprietary products) that allows them to convert part of their home equity into cash. Unlike traditional mortgages, reverse mortgage borrowers do not make monthly payments to the lender. Instead, the lender pays the borrower.
Key Points:
# Eligibility: Typically for homeowners 62 or older with significant home equity.
# No Monthly Payments: Borrowers do not make monthly payments. Instead, the loan balance increases over time as interest and fees accrue.
# Maintaining the Home: Borrowers must keep up with property taxes, homeowners insurance, maintenance, and other home-related expenses.
# Loan Repayment: The loan is repaid when the borrower sells the home, moves out permanently, or passes away. If the loan balance exceeds the home’s value, FHA insurance covers the difference, protecting borrowers and their heirs from owing more than the home’s value.
How to Receive Payments from a Reverse Mortgage
Borrowers can choose from several disbursement options:
# Lump Sum: A one-time payment at closing.
# Monthly Payments: Fixed monthly payments for a specified period or as long as the borrower lives in the home (tenure).
# Line of Credit: Borrowers can draw funds as needed.
# Hybrid: A combination of monthly payments and a line of credit.
Types of Reverse Mortgages
- Home Equity Conversion Mortgage (HECM): The most common type, insured by the FHA. Requires meeting with a HUD-approved counselor. Non-recourse loan with a loan limit of $1,149,825 for 2024.
- HECM for Purchase: Used to buy a new primary residence. Requires a substantial down payment and covers the remaining balance with the reverse mortgage.
- Single Purpose Reverse Mortgage: For a specific purpose, like home repairs or paying property taxes. Offered by state and local governments or nonprofits, typically cheaper and for low # to moderate-income homeowners.
- Proprietary Reverse Mortgage:
# Also known as jumbo reverse mortgages, not federally insured. Suitable for high-value properties and borrowers as young as 55, depending on the lender.
Reverse Mortgage vs. Conventional Mortgage
| Feature | Traditional Mortgage | Reverse Mortgage |
|---|---|---|
| Home as collateral | Yes | Yes |
| Monthly payments | Yes | No |
| Property taxes and insurance | Yes | Yes |
| Lender pays borrower | No | Yes |
| Loan balance | Decreases | Increases |
| Age restrictions | No | Yes |
| Title to home | Yes | Yes |
| Home maintenance | No | Yes |
| The loan may exceed the home value | Yes | No (with HECM) |
| Tax-deductible interest | Yes | Yes (after the balance is paid) |
Pros and Cons of Reverse Mortgages
Pros:
# Provides flexible cash flow during retirement.
# Loan proceeds are typically not taxed and don’t affect Medicare or Social Security.
# Allows seniors to stay in their homes.
# No early payment penalty.
# Non-recourse loan for HECMs.
Cons:
# Higher interest rates and fees than traditional mortgages.
# Requires a HUD-approved counseling session for HECMs.
# Borrowers must maintain the home as a primary residence.
# Complex terms and conditions.
# Potentially reduces home equity and inheritance.
# Some borrowers might outlive the loan funds.
Is a Reverse Mortgage Right for You?
Reverse mortgages can be a viable option for homeowners with substantial equity looking for long-term liquidity or specific funds. However, they come with complexities and risks. Before proceeding, consider alternative ways to access home equity and consult with a HUD-approved counselor or certified reverse mortgage professional to ensure it aligns with your financial goals.
