Best Reverse Mortgage Companies

AAG gives you several borrowing strategies and the expertise to coach you through your decision. As our vote for the best overall reverse mortgage company, AAG should be the first place where you start asking questions.

Potential initial costs include interest rates, private mortgage insurance (PMI), origination fees, your payment option choice, appraisal and title search fees, and other closing costs. These are all up-front costs and could total in the $6,000 to $8,000 range, depending on the value of your home.

Throughout the contract, you’ll pay an annual PMI, up-front premium payment at closing, and your real estate property taxes and homeowners insurance. This could total another $4,000 to $9,000 annually. When you sell your home or pass away, the loan balance will have to be paid, or else the lender will keep the home to settle the debt.

Within its program options, AAG offers a term reverse mortgage, where you choose the number of years you’d like to receive payments, and a tenure reverse mortgage, where you receive payments for as long as you live in the home. You must be 62 or older to qualify and have all or most of your mortgage paid down. The property must be your primary residence, and you must complete reverse mortgage counseling with an independent counseling agency before you close.

AAG typically does not charge a servicing fee throughout the life of a reverse mortgage loan. The typical turnaround time is 30 days from application submission to close.

The company offers reverse mortgages to borrowers in every state and has physical offices in California, New York, Georgia, Texas, Hawaii, Missouri, Illinois, and Arizona for more personalized customer service. You can also use its online calculator to get a quick estimate of what you may qualify for.

Founded in 2004, AAG is one of the top reverse mortgage lenders in the United States. It is considered the biggest player in the industry and a member in good standing as a reverse lender with the National Reverse Mortgage Lenders Association (NRMLA), where it continues to get outstanding reviews from its customer base.

Liberty Reverse Mortgage provides competitive pricing with flexible terms and can often bundle upfront fees into the loan.

The expected fees are: 

• FHA mortgage insurance equal to 1.75% of the home value
• Origination fees of 2% of the first $200,000 of your home’s value, plus 1% on remaining value, capped at $6,000
• Appraisal and title search fees 

Depending on how much your home is appraised for, your initial expenses could be in the $5,000 to $19,000 range.

In addition to age, mortgage, and residence requirements, the online application requires a credit check. Liberty and its financial counselors will verify if you can handle the ongoing maintenance, insurance, and tax expenses before it approves you for a reverse mortgage.

Single-family and multifamily residences qualify, as do FHA-approved condos and manufactured homes. Generally, Liberty completes the process in 60 days or less. If it can’t close your mortgage within that period, the company deducts $500 from its closing costs for you.

The Liberty HECM and HECM for Purchase loan application processes typically close in 45 days. Loan terms include lump sum payments, line of credit payouts, monthly reimbursements, and combination payouts.

This company was founded in 2004 and later acquired by Ocwen Financial. The company has consistently been one of the top lenders in terms of origination volume, funding more than 60,000 seniors with $7.5 billion in loans since inception. Liberty is an NRMLA member and remains in good standing.

Reverse Mortgage Funding focuses exclusively on reverse mortgages and is our favorite choice for borrowers looking for an easier qualification process. With its Equity Elite® reverse mortgage program, you can qualify at age 55 in some states, whereas traditional HECM loans need you to be at least 62. 

The program is also available to owners and buyers of non-FHA-condos, thus opening up an additional category of home qualification. If your home value and equity reach $4 million, you can qualify for a loan amount of that size.

An additional benefit Reverse Mortgage Funding offers is the Equity Elite® ZERO program. This program nearly eliminates all closing costs with a lender credit, has potentially lower interest rates, and carries no PMI.

To qualify, you must be 55 (in select states) and have at least 50% of your mortgage paid down. Like other lenders, you must meet with a licensed counselor and undergo a financial assessment and credit check to apply.

Single-family homes, townhouses, condos, and multi-family homes can qualify for Equity Elite®. This company offers lump-sum payments, line of credit payouts, monthly reimbursements, and combination payouts.

Reverse Mortgage Funding remains in contact with borrowers using the same team of dedicated loan officers throughout the life of the client's HECM contract, providing the necessary assistance and expertise. The whole process takes 30 to 45 days to complete.

Established in July 2012, Reverse Mortgage Funding services all 50 states, Puerto Rico, and the District of Columbia, but Equity Elite is currently available to only 27 states for now.

If you like to educate yourself before speaking to a salesperson, Longbridge Financial is our best online option. On their website, you can get an online quote and watch a short video to help you better understand reverse mortgages. There’s even a section for adult children to learn more about how their parents’ reverse mortgage could affect them.

Furthermore, you can learn what to expect from reverse mortgage counseling and the application process. Applications can be completed over the phone, and loan closing can be done in the borrower’s home.

Longbridge’s HECM products carry the same costs as all others, including origination, title, and escrow fees, appraisal costs, and PMI, which could run $4,000 to $8,000. For its proprietary, non-government reverse mortgage program, called Platinum Mortgage, you’re exposed to lower upfront costs, potentially lower interest rates, and higher-value home loans. Like the other lenders, you must be 62 years of age or older and meet mortgage, residence, and counseling parameters to apply.

The company does not levy monthly servicing fees and provides an option for no origination fees. This lender pledges to update borrowers weekly throughout their application process and close loans within 45 days or less.

With Longbridge, you can receive your payout as a lump-sum payment, term payments, line of credit, or a combination. Longbridge is licensed in all 50 states and the District of Columbia.

Originally founded in 2012, the company focuses exclusively on reverse mortgages and offers a customer service guarantee. That guarantee includes a commitment confirming whether a reverse mortgage is in your best interest.

Many people in their 60s have raised their kids and find themselves empty-nesters in a large home with space they no longer need. FAR's HomeSafe works well for owners of high-value homes because it provides access to up to $4 million of equity to be used towards the purchase of a new home or condo.

With HomeSafe, many of the closing costs can be rolled into the reverse mortgage. You still have to account for appraisal, title, and escrow fees, and it may charge a servicing fee of up to $35 per month for some borrowers.

FAR’s HomeSafe, HomeSafe Flex, and its standard HECM reverse mortgage provide borrowers with multiple ways to access their proceeds, such as lump sum, term payments, and a line of credit. To qualify, you must be at least 62 (55 in some states), complete the HUD-required financial counseling, pass the financial assessment, and apply the reverse mortgage to your primary residence.

The financial assessment looks at credit history, property tax history, monthly residual income, and other financial metrics as needed. Many types of homes qualify, including single-family homes, properties with two to four units as long as you live in one of the units, FHA-approved condos for the HECM product, and even more condos for the HomeSafe program. Loans close within 30 to 45 days.

FAR’s HECM product is available in all 50 states, but HomeSafe is limited to 26 states plus Washington, D.C. The company’s customer service team is more engaged than most; they encourage you to email and call them about your situation.

Since its establishment in 2003, the company has stood out for its commitment to professionalism and customer service. FAR is a member of NRMLA, demonstrating its dedication to customer service and providing long-term counseling and advice.