Best Reverse Mortgage Companies of 2023

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.

If you’re considering one of these loans, there are many reverse mortgage companies you could work with. Some offer more loan options or lower rates, while others come with better service or cater to different age groups than the typical 62-plus.

Not sure which one to choose? See our picks for the best reverse mortgage companies below.

Our Top Picks for Best Reverse Mortgage Companies

• Best for low interest rates: Longbridge Financial
• Best for product variety: Finance of America Reverse
• Best for homebuyers: Fairway Independent Mortgage Company
• Best for tech-savvy borrowers: Open Mortgage
• Best customer service: American Advisors Group

Why we chose this company: Longbridge Financial (NMLS #957935) is our top reverse mortgage lender — at least if low interest rates are your priority. When we analyzed government-backed Home Equity Conversion Mortgage (HECM) rate data from March 2021 to March 2022, Longbridge had the lowest average interest 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%. (With a reverse mortgage, interest is added to the loan balance monthly based on the interest rate your loan carries.)

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.

Why we chose this company: Finance of America Reverse (NMLS #2285) has something for just about everyone. It offers the popular HECM reverse mortgage, HomeSafe 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.

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 — particularly when it comes to HECM for purchase loans.

The company has focused a lot of its efforts on these loans in recent months, and thanks to its 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 on a tight timeline, 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: 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 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 customer service or request funds from your line of credit.

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 American Advisors Group (NMLS #9392), the nation’s biggest reverse mortgage lender by volume. The company boasts a 4.5 on Trustpilot, with 84% of reviewers rating their experience either four or five stars. The lender also has a 4.6586 out of 5 stars on the Better Business Bureau.

The company offers both standard HECMs and HECMs for purchase, as well as refinancing options for seniors looking to tap their home equity or reduce their mortgage payments.

It’s worth noting that CFPB ordered AAG to pay over $1 million in penalties in 2021 for what the Bureau called “deceptive acts aimed at older homeowners.” The CFPB has more about these allegations on its website.

Other companies we considered

All Reverse Mortgage

All Reverse Mortgage (NMLS #13999) would have made our list, but its geographic service area — just 15 states — was too small. For consumers in the states it does service (California and Texas, to name a few), 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 Senior/HighTech Lending

American Senior (NMLS #7147), the reverse mortgage arm of HighTech Lending, might have made the list, but its lack of reviews on Trustpilot and the Better Business Bureau, small reach (just 21 states) and deceptive advertising charges held them back. The company has a variety of loan products, including a jumbo loan and HECM for purchase program.

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 (HELOCs). Though the company has strong reviews on Trustpilot (4.8 stars), it has a mere one star on the BBB and 84 complaints in the last three years. 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. The company offers both HECMs and a proprietary jumbo reverse mortgage, which goes up to $4 million and is available for borrowers 55 and up Its main drawbacks are due its parent company — PHH Mortgage/Ocwen — which was recently sued by the state of Florida and has 17 regulatory actions against it, according to the NMLS database.

Nationwide Equities Corporation

Nationwide Equities Corp. (NMLS #1408) has solid reviews and a standout jumbo loan with a $6 million limit. Their small reach (just 16 states), plus 2021 allegations of deceptive advertising from the CFPB are what pushed the company out of the running.

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, you may leave some reverse mortgage problems for your heirs. They would be responsible for repaying the lender out of your estate, or, if that’s not possible, via their own cash or by selling the property.

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).

Reverse mortgage rules

Reverse mortgage qualifications vary by loan program and lender. If you’re opting for a HECM, you’ll need to meet HUD’s reverse mortgage age requirement of 62 and will also need to have a substantial amount of equity in your property. The home also needs to be your primary residence, you must complete HECM counseling, and you’ll need to stay current on your home insurance premiums and property taxes.

With proprietary loan programs — like those that go down to age 55 or offer loan amounts in the millions — qualifying standards may differ. You’ll need to check with the specific lender you’re considering for these requirements.

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 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. Follow these mortgage refinance steps if this is a strategy you’re considering.

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.

When choosing a mortgage lender, 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.

• 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.

Reverse mortgage pros and cons

Reverse mortgages can be a handy product in retirement, but they have some notable drawbacks. Here’s a look at both the good and bad for these unique mortgage products.

Pros of reverse mortgages:

• They can increase cash flow: Reverse mortgages don’t require monthly mortgage payments, like traditional loans. This can free up cash flow and ease financial pressure.

• They can supplement your income: Social Security only goes so far. With a reverse mortgage, you can get additional income to support your needs in retirement.

• They’re tax-free: Reverse mortgage proceeds might feel like income, but they’re not taxed as such. The IRS considers them loan proceeds instead.

• They come with protection: Reverse mortgages are non-recourse loans, meaning you’ll never owe more than your home’s worth.

Cons of reverse mortgages:

• There are closing costs: You’ll need upfront cash to cover the costs to originate your reverse mortgage. Financing them is an option, but this means more debt and more long-term interest costs (not to mention, fewer proceeds for you).

• They put your home at risk: When you have a reverse mortgage, you’re required to keep up with property taxes, home insurance and HOA dues. If you don’t, your lender could foreclose on the house.

• They could impact your eligibility for other benefits: If you’re on Medicaid or Supplemental Security Income, taking on a reverse mortgage loan could make you ineligible. Talk to an attorney if you’re concerned your benefits may be impacted.

• They complicate things for your heirs: If you pass on, your heirs will be left to settle up the balance on your reverse mortgage. If they don’t have the cash to do it, that means selling your house (even if it’s been in the family for decades).

As you can see, reverse mortgages have risks. If you’re not sure one is right for your scenario, talk to a financial professional for personalized guidance. They can help you determine the best way to achieve your retirement goals.

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.

• Mortgage rate volatility has been high in recent months. Make sure to shop around for your reverse mortgage, as rates can differ significantly from one company to the next.

• 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.

• Only about 2% of the mortgage-related complaints the CFPB has received in 2022 (through Nov. 9) involved reverse mortgages.

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:

• Nationwide Mortgage Licensing System (NMLS)
• Better Business Bureau (BBB)
• Trustpilot
• U.S Department of Housing and Urban Development (HUD) HECM loan data
• Consumer Financial Protection Bureau (CFPB)
• Federal Trade Commission (FTC)
• National Reverse Mortgage Lenders Association (NRMLA)

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.

COMPANY	BEST FOR	LOAN TYPES
Longbridge Financial	Low interest rates	HECM, HECM for purchase, jumbo loans up to $4 million
Finance of America Reverse	Product variety	HECM, HECM for purchase, jumbo loans up to $4 million, retirement mortgages, home-sharing
Fairway Independent Mortgage	Homebuyers	HECM, HECM for purchase, jumbo loans up to $4 million
Open Mortgage	Tech-savvy borrowers	HECM, HECM for purchase
American Advisors Group	Customer service	HECM, HECM for purchase, refinancing

Editor's note: We removed Reverse Mortgage Funding from this list after the company stopped originating loans and filed for Chapter 11 bankruptcy.