Best Reverse Mortgage Companies of 2022

A reverse mortgage is a type of mortgage loan for seniors that works backward. Rather than making payments to your lender, you receive payments — sort of like an advance on your eventual home sale.

These loans are best for homeowners with lots of equity who plan to stay in their homes for a while and who have enough income to cover the costs of property taxes, insurance and home maintenance. They’re not ideal if you are struggling financially, think you may move out soon or want to keep your home in the family for generations to come. (It can sometimes be challenging for heirs to pay reverse mortgages off).

If you’re considering one of these loans, there are many reverse mortgage companies to choose from, each with their own pros and cons. Some have more loan options or lower rates, while others come with better service or cater to different age groups than the typical 62-plus.

For these reasons, it’s important to choose your reverse mortgage lender carefully and to make sure you’re picking the right lender for your financial situation. Use this guide to learn about the six best reverse mortgage companies right now.

Our Top Picks for Best Reverse Mortgage Companies

Why we chose this company: With a reverse mortgage, interest is added to the loan balance monthly based on the interest rate your loan carries. By choosing Longbridge Financial, you may be able to minimize those costs.

When we analyzed government-backed Home Equity Conversion Mortgage (HECM) rate data from March 2021 to March 2022, Longbridge (NMLS #957935) had the lowest average rate across our list. The company — the No. 6 reverse mortgage lender in the country by volume — averaged a mere 2.14% for the 13-month period. By comparison, the average rate across all our top reverse mortgage lenders was 2.35%.

Low rates aren’t the only thing Longbridge has going for it, though. The company also has great customer reviews and few complaints, and it remains your servicer after closing — meaning you’ll do business with the same company for as long as you have the loan.

Longbridge’s highly informative website is worth noting, too. The site offers “personas” to help match you with the right information for your needs. Looking for HELOC alternatives? Click on Walter, and you’ll get info on how reverse mortgages compare to home equity lines of credit. Want to know how much you could receive from a reverse mortgage? Click on George and go to Longbridge’s reverse mortgage calculator. There is also an online quote tool, FAQs and an “Ask an Expert” section.

Why we chose this company: Finance of America Reverse (NMLS #2285) has something for just about everyone. It offers the popular HECM reverse mortgage, jumbo loans up to $4 million and a few alternatives that older homeowners might want to consider.

For those that can’t qualify for a HECM or want something a little different, there’s also FAR’s proprietary EquityAvail option. Described as a “retirement mortgage,” it blends elements of a typical mortgage loan with a reverse mortgage, allowing borrowers to minimize their monthly housing costs as they age.

With EquityAvail, borrowers can get a fixed-rate mortgage loan and receive an upfront lump sum payment up to $4 million (minus any remaining mortgage balance). They’ll then pay reduced monthly mortgage payments for the first 10 years of the term, at which point, payments fall away entirely. Like a typical reverse mortgage, the final loan balance won’t come due until the borrower sells the house, no longer uses it as their primary residence or passes away.

FAR also offers a home-sharing program called Silvernest. The program matches seniors with rent-paying housemates so they can earn income and put more money toward retirement goals. It can be used in tandem with FAR’s loan offerings.

Why we chose this company: Fairway Independent Mortgage (NMLS #1630898) is one of the most active mortgage lenders in the nation. They’re No. 4 in volume for traditional mortgages, and so far this year, they’ve originated more HECM for purchase loans than any other lender.

It’s no wonder Fairway tops the list in these loans. The company has focused a lot of its efforts on HECM for purchase loans in recent months, and thanks to streamlined operations, it can close many in just 17 days. While the company’s overall average is 30 days, that’s still a far cry from the 45 to 90 days most lenders quote — and for seniors looking to buy a new home in today’s hot market, the quick funding might just be a game-changer.

The company also offers a solid array of online resources (including a reverse mortgage blog, an FAQ section and a reverse mortgage calculator), and on the interest rate front, Fairway’s rates fall somewhere in the middle. According to an analysis of HECMs issued March 2021 to March 2022, they’re not the lowest of the lenders on our list, but they’re certainly not the highest either.

Why we chose this company: Reverse Mortgage Funding (NMLS #1019941) is dedicated solely to reverse mortgage loans, and their loan options run the gamut. There are adjustable-rate and fixed-rate HECMs, HECMs for purchase and Equity Elite loans — a type of jumbo reverse mortgage that is available to borrowers as young as 55 in many states.

Equity Elite loans can be used to either tap your existing home’s equity or purchase a new property, and loan amounts go up to $4 million, making them a good option for seniors located in higher-cost housing markets.

By volume, RMF is the No. 3 reverse mortgage lender in the country, and its interest rates are competitive, too. According to Department of Housing and Urban Development data from March 2021 to March 2022, the company has the third-lowest interest rate average on our list.

Their price match guarantee is also notable. If another lender offers you a better pricing on a reverse mortgage, RMF will try to beat or match it. If they can’t, you’ll get a $1,000 gift card.

Why we chose this company: If you’re looking for a more tech-driven reverse mortgage experience, Open Mortgage’s (NMLS #2975) Smart Reverse loan platform might be for you.

With Smart Reverse, you get all kinds of educational video content and can start your application process all online. While you can’t complete the entire process there (HECMs require counseling through a HUD-approved agency), you can use the Smart Reverse platform to run through various loan scenarios and, after closing, manage your loan, connect with Open Mortgage service representatives or request funds from your line of credit with just a few clicks.

According to our analysis of HUD data, Open Mortgage has higher average interest rates than some of the others on our list, though not the highest. Make sure you compare rates from at least a few different lenders to ensure you’re getting the best deal.

Why we chose this company: Customers are quite happy with Mutual of Omaha’s (NMLS #1025894) service. The company boasts a 4.1 on Trustpilot, with almost three-quarters of reviewers calling their experience either “excellent” or “great.” The lender also has a 4.88 out of 5 stars and an A+ rating with the Better Business Bureau.

Thanks to the Mutual of Omaha’s nationwide network of offices, meeting with an advisor in person is easy too, and there’s also a handy mobile app borrowers can consult for research or even use to apply for their loan.

The downside of this lender is that their average rates came in higher than others on our list, though only by a few basis points. From March 2021 to March 2022, Mutual of Omaha averaged a 2.53% interest rate (the average rate across all our top lenders was 2.35%). To make sure you’re getting the best deal, always get quotes from at least a few different lenders.

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Other companies we considered

All Reverse Mortgage

All Reverse Mortgage (NMLS #13999) would have made our list, but its geographic service area — just 13 states — was too small. For consumers in the states it does service, the company is worth a look. It offers a plethora of resources, and the company is family-owned and operated, so you’ll get top-notch service. (It has a nearly perfect five-star rating with the BBB, too.)

American Advisors Group

American Advisors Group (NMLS #9392) is the top reverse mortgage lender by volume by a landslide, but there were claims of deceptive marketing practices we had to consider. The CFPB ordered AAG to pay over $1 million in penalties just a few months ago due to “deceptive acts aimed at older homeowners.” The company does offer a variety of loan products, though, and judging by reviews and ratings, customers seem largely happy with their experiences.

American Senior/HighTech Lending

American Senior (NMLS #7147) — the reverse mortgage arm of HighTech Lending — might have made the list had the state of Washington not charged them with deceptive advertising a few years back. The company has a variety of loan products, and their jumbo loans even go up to $6 million — making it one of the highest limits of all the companies we considered.

Homebridge Financial Services

Homebridge (NMLS #6521) is a lender that offers reverse mortgages, as well as many other loan products, including purchase loans, refinances and home equity lines of credit. Though the company has strong reviews on Trustpilot (4.8 stars), it has a mere one star on the BBB and 84 complaints — more than any company we recognized on our list. Their reverse mortgage content and resources were also thin compared to other options we considered.

Liberty Reverse Mortgage

Liberty Reverse Mortgage — also called Liberty Home Equity Solutions (NMLS #2726) — was the No. 9 reverse mortgage lender by volume in 2022. While the company does offer both HECMs and a proprietary jumbo reverse mortgage, its reverse mortgage content is thin. Additionally, the company’s parent — PHH Mortgage/Ocwen — was recently sued by the state of Florida and has 11 regulatory actions against it, according to the NMLS.

Nationwide Equities Corporation

Nationwide Equities Corp. (NMLS #1408) is another company we eliminated due to claims of deceptive advertising practices. The CFPB says it sent misleading ads to hundreds of older homeowners and ordered it to pay a penalty just last year. Had it made our list of top lenders, we would’ve noted its high jumbo loan limits. Like American Senior, it goes up to a whopping $6 million.

One Reverse Mortgage

One Reverse Mortgage (NMLS #167283) used to be the reverse mortgage arm of Quicken Loans/Rocket Mortgage, but the company halted operations in early 2020. Previously, they were one of the top reverse mortgage lenders in the country by volume.

Quontic Bank FSB

Quontic Bank (NMLS #403503) has made many other lists of the best reverse mortgage lenders, but it appears the company has shifted focus. It no longer lists reverse mortgage products on its website, nor markets them for consumers.

Reverse Mortgage Guide

Reverse mortgages are complicated products. While they don’t require monthly payments, they are a debt — and they do need to be repaid at some point down the line.

Keep reading to better understand how reverse mortgages work and what one might mean for your finances?

What is a reverse mortgage?

A reverse mortgage is a type of loan for older homeowners — generally, those aged 62 and up (though some lenders allow down to 55). They allow borrowers to turn their home equity into cash. Typically borrowers use the money to supplement retirement income, cover the costs of aging-in-place improvements or home repairs or reduce their monthly housing expenses.

Unlike with traditional mortgage loans and equity products (like cash-out refinances and home equity loans), reverse mortgage holders don’t make monthly payments. Instead, the lender pays the borrower. Payment options include monthly disbursements, a lump sum payment upfront or a line of credit, which borrowers can withdraw from as needed. Borrowers can also choose a combination of these payouts.

You can take out a reverse mortgage on a single-family home, multi-unit property in which you live, townhome or condo (on HECMs, it just has to be an FHA-approved condo).

For more details read Money’s reverse mortgage guide.

Types of reverse mortgages

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

Here’s how those differ:

• HECMs: HECMs are reverse mortgages that are insured by the federal government — specifically the Federal Housing Administration — and issued by FHA-approved lenders. There are also HECMs for purchase — government-backed loans designed solely for purchasing a home versus leveraging the equity in one you already own. They typically require down payments between 29% and 63%.
• Proprietary reverse mortgages: These are private mortgage loans that are unique to the lender offering them. Some lenders call them jumbo reverse mortgages, as they usually have higher limits than HECMs and can be used to cover high-value homes (up to $6 million in some cases). These are not government-backed, so they typically have higher interest rates.
• Single-purpose reverse mortgages: The loan proceeds from single-purpose reverse mortgages can only be used toward one specific purpose — like covering home improvements or paying property taxes, for example. Single-purpose reverse mortgage programs are typically offered by nonprofit organizations, as well as state and local governments.

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

How does a reverse mortgage work?

A reverse mortgage essentially advances the money from your eventual home sale. The lender will give you that advance via one large payment, many monthly payments or a line of credit.

You won’t need to make any principal or interest payments to your lender as long as you live in the home, but you will need to pay property taxes, homeowners insurance and HOA dues. To protect its investment, your lender will also require you to maintain the home and keep it in good condition.

Your loan 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, their own cash or by selling the property.

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 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 sale price of the home.

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.

You should:

• • Know what you need. Have a good grasp on why you want a reverse mortgage. Is it for a specific purpose, like repairing your house or buying a new home? Or do you need extra cash flow each month to support yourself in retirement? This can point you toward the right type of reverse mortgage loan — and lender — for your goals.
  • Get quotes from different lenders. Reverse mortgage companies can differ quite a bit in pricing and in product variety, so it’s important to get quotes from several to ensure you’re getting the best deal.
  • Compare rates and fees. Go through the loan estimate from each lender and compare them line by line. Pay particular attention to the interest rate and any origination fees, closing costs, servicing fees or mortgage insurance premiums.

• Know what you need. Have a good grasp on why you want a reverse mortgage. Is it for a specific purpose, like repairing your house or buying a new home? Or do you need extra cash flow each month to support yourself in retirement? This can point you toward the right type of reverse mortgage loan — and lender — for your goals.
• Get quotes from different lenders. Reverse mortgage companies can differ quite a bit in pricing and in product variety, so it’s important to get quotes from several to ensure you’re getting the best deal.
• Compare rates and fees. Go through the loan estimate from each lender and compare them line by line. Pay particular attention to the interest rate and any origination fees, closing costs, servicing fees or mortgage insurance premiums.

• Check for regulatory actions and lawsuits against the company. Search for any lenders you’re considering in the NMLS database. Once you pull up a lender, scroll to the very bottom of the company’s profile page and look for any regulatory actions against the lender. You should also search the CFPB’s website for any recent enforcement actions that might involve the company.

• Read customer reviews and ratings. The Better Business Bureau and Trustpilot are great ways to gauge customer sentiment about a company. On the BBB’s site, you can check their overall rating, read complaints and even see company responses. Trustpilot can give you a glimpse into what borrowers liked or did not like during their experience with a lender.

You should also be wary of aggressive sales tactics. Heed these tips for avoiding reverse mortgage scams, and if something feels off or suspicious, consider reporting the lender to the Federal Trade Commission or your state’s attorney general’s office.

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 — either into a new reverse mortgage loan or into a conventional loan.

Latest News in Reverse Mortgages and Mortgage Lending

• As higher mortgage rates make refinancing more expensive, more homeowners may turn to reverse mortgages to tap their home equity. Learn about how reverse mortgage loans work and their pros and cons to see if this type of loan is right for you.
• The Department of Housing and Urban Development raised the HECM limits — the maximum loan amount borrowers can receive — to $970,800 in 2022. That’s up from $822,375 in 2021 and $765,600 in 2020.
• Quicken Loans (now Rocket Mortgage and the largest mortgage lender in the country) paused operations on its reverse mortgage lending arm, One Reverse Mortgage, in early 2020. At the time, One Reverse was one of the largest reverse mortgage lenders by volume.
• PHH/Ocwen renamed its reverse mortgage lending brand Liberty Reverse Mortgage in early 2020. The company remains one of the largest originators of reverse mortgage loans.
• In 2021, the Consumer Financial Protection Bureau found that Nationwide Equities Corporation misled consumers and participated in deceptive advertising practices. Later that year, the Bureau also took action against reverse mortgage lender American Advisors Group for similar activities.
• According to the 2021 Consumer Response Report from the CFPB, only 1% of the lending-related complaints it received in 2021 involved reverse mortgages. However, the number of complaints has trended upward in recent months.

Reverse Mortgage FAQ

Reverse mortgages can be confusing, so if you have questions, you’re not alone. We’ve rounded up some of the most common questions regarding reverse mortgages below. You can also check out our guide to reverse mortgage pros and cons for more information.

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 a variety of 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 the geographic reach of companies 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 included:

Summary of Money’s Best Reverse Mortgage Company Reviews

The best reverse mortgage company depends on your goals as a borrower, the type of loan and loan amount you need and what kind of service you’re looking for. While our guide is a good starting point for researching lenders, it’s important to compare at least a few different companies when getting quotes. This will ensure you get the best possible rate and terms for your needs.

If a reverse mortgage is not the best option for you, also consider Money’s picks for the best mortgage lenders and best mortgage refinance companies.