Best Reverse Mortgage Companies

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As one of the largest reverse mortgage companies with a stable reputation, American Advisors Group (AAG) offers two critical features that make it the best company overall for reverse mortgages: several mortgage type options, and specialists to help you choose which one is best for you.

AAG, being the largest provider of reverse mortgages in the country with a reputation for stability in the financial industry for many years, 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, and are impacted by, 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 as well in addition to the up-front premium payment at closing, plus your real estate property taxes and homeowners insurance. This could total another $4,000 to $9,000 annually. You will not be making mortgage payments however as long as you live in the home. 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 and comply with the terms, such as paying your taxes and insurance.

You must be 62 years of age or older to qualify and have all or most of your mortgage paid down. The property must be your primary residence, and you will have to complete reverse mortgage counseling with an independent counseling agency before you close. Mobile homes usually do not qualify unless you have a HUD seal affixed to the outside of your home. This seal confirms that the home meets Manufactured Construction and Safety Standards.

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, and Texas for more personalized customer service. You can also use its online calculator to get a quick estimate of what you may qualify for, or fill out the short online form to get an informational kit or to have a specialist call you.

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. AAG is a member in good standing as a reverse lender with the National Reverse Mortgage Lenders Association (NRMLA) and continues to get outstanding reviews from its customer base. This is a testament to the company’s supportive customer service environment.

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Liberty Reverse Mortgage offers you flexible terms, reverse mortgage specialization (it’s all they do) with a price match and closing date guarantee, making them our best for good credit borrowers.

Best for good credit borrowers, Liberty Reverse Mortgage provides competitive pricing with flexible terms, can often bundle upfront fees into the loan, and will match or beat a competitor’s program offering with the Liberty Iron Clad Guarantee.

The expected fees are: 

• FHA mortgage insurance equal to 1.75% of home value, capped at $16,989
• Origination fees set at 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 

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

Liberty offers reverse mortgages in every state except Hawaii, New York, South Dakota and Utah.

Its online application will uncover whether you are at least 62 years of age, if you’ve paid down all or most of your mortgage, have a credit score of at least 620, and if the property is your primary residence. 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.

Liberty on average completes the process in 60 days or less and, 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 a member of the National Reverse Mortgage Lenders Association (NRMLA) and remains in good standing.

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Reverse Mortgage Funding has a proprietary reverse mortgage product that permits non-FHA-approved condos, has lower borrower age requirements, and has higher equity access making it our best for easier qualification.

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 60, 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 homes for qualification. If your home value and equity reach $4 million, you can qualify for a loan amount of that size, where a traditional HECM caps at $970,800.

An additional benefit Reverse Mortgage Funding offers is the Equity Elite® ZERO program, which eliminates almost all closing costs with a lender credit, has potentially lower interest rates, and carries no PMI, making it less expensive at closing, and even during the middle and end of the contract.

To qualify you must be 60 years of age or older, except in North Carolina, Texas and Utah. You must have at least 50% of your mortgage paid down. The more you’ve paid down, the larger the loan you’ll qualify for. Like other lenders, you’ll need to meet with a licensed counselor to apply, and you must undergo a financial assessment and credit check to make sure you can cover the real estate and homeowners insurance costs on your residence.

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. It is also an active member of National Reverse Mortgage Lenders Association.

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Since reverse mortgages are largely defined by the FHA parameters, Longbridge Financial stands out as the best online option because of the easy-to-access educational materials on its website, and its best-in-the-business online quote generator.

If you like to educate yourself before you speak to a salesperson, Longbridge Financial is our best online option for you. 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 about what to expect from the reverse mortgage counseling and application processes. 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, all of 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.

Longbridge is licensed in all 49 states and the District of Columbia.

Like the other lenders, you must be 62 years of age or older, you must have all or most of your mortgage paid down, the property must be your primary residence, and you’ll have to meet with a licensed counselor to apply and undergo a financial assessment and credit check.

The company does not levy monthly servicing fees and provides an option for no origination fees. This lender pledges to update borrowers at least weekly throughout their application process and to 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.

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

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Finance of America Reverse’s (FAR) HomeSafe program is a non-government reverse mortgage product that is ideal for seniors who want to move into a new home to downsize their living space, live in a home that better suits their physical limitations, or perhaps move closer to their kids, making it our best solution for using a reverse mortgage to purchase a new house or condo.

Many people in their 60’s have raised their kids and find themselves empty-nesters in a large home with space they no longer need. FAR’s HomeSafe program is the best choice for people who want to combine the benefits of a reverse mortgage with buying a new home that better meets their location, size, and layout needs.

HomeSafe works well for owners of high-value homes because it provides access to up to $4 million of equity to be used towards a 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. 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, have most of your mortgage paid down, complete the HUD-required financial counseling, pass the financial assessment, and apply the reverse mortgage to your primary residence. There is no specific credit score requirement.

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 27 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 their dedication to customer service and providing long-term counseling and advice.