Best reverse mortgage companies
With the job market slowing down and other economic factors shifting, many Americans are cash-strapped and looking for extra ways to make ends meet. If you're a senior homeowner, one option for making ends meet is to take out a reverse mortgage.
A reverse mortgage is a unique type of mortgage loan geared toward senior borrowers (typically those ages 62 or older) that allows you to convert a portion of your home equity into cash. Reverse mortgages allow you to borrow with a lump sum of cash, a credit line or monthly payments. Borrowers or their heirs typically repay the reverse mortgage with the proceeds of the sale of the home.
If you're interested in a reverse mortgage, there are a few different companies that offer them. To help you explore your options, we've broken down the best reverse mortgage companies into several categories, outlined below.
Explore your reverse mortgage options here to see how much you're eligible to withdraw.
Best reverse mortgage companies
Here are our picks for the best reverse mortgage companies, broken down into five categories.
- Best overall: Fairway Independent Mortgage
- Best for low interest rates: Longbridge
- Best for customer service: Finance of America
- Best reviewed: Finance of America
- Best for owners who need cash now: Fairway Independent Mortgage
Best overall: Fairway Independent Mortgage
Fairway Independent Mortgage is our choice for the best reverse mortgage lender. Although the company is smaller than many of its competitors, they have hundreds of local offices for in-person support, strong customer reviews, an A+ Better Business Bureau (BBB) rating and competitive interest rates.
The company provides up to six options for receiving your proceeds, including a lump sum payout, fixed monthly payments or a line of credit. If you have at least 50% equity in your home, you may qualify for a reverse mortgage. Check with Fairway to learn more about its qualifications and to walk through your options.
Best for low interest rates: Longbridge
As with other types of loans, interest rates vary by lender. Longbridge Financial consistently offers some of the lowest rates available in the reverse mortgage sector. According to its website, reverse mortgage rates typically fall just below those of fixed-rate mortgages.
Longbridge lowers the age requirement to 55 for its jumbo Longbridge Platinum mortgage. If you're thinking about downsizing, Longbridge also offers the HECM for Purchase reverse mortgage to help you purchase a new primary residence and reduce your out-of-pocket expenses. The company provides extensive information and resources on its website, including a reverse mortgage calculator and a FAQ page.
Best for customer service: Finance of America
Finance of America Reverse is one of the largest reverse mortgage lenders in the country. But while many large corporations struggle to provide excellent customer service, that's not the case with Finance of America Reverse. The lender pairs an A+ BBB rating with a 4.2 TrustPilot rating.
One little-recognized element of customer service is providing resources so borrowers don't have to call for service. Along these lines, the Finance of America Reverse website offers an informative blog, a mortgage calculator and an extensive FAQ page that answers pertinent questions for each of its products.
Best reviewed: Finance of America
Finance of America is a top reverse loan originator and for good reason. They deliver for their customers, who love to share their experiences. The company boasts over 7,000 combined reviews on Trustpilot and Better Business Bureau and has a 4.7 rating on Trustpilot.
Finance of America allows you to receive your funds in numerous ways, including a lump sum payment or line of credit. You can use the money to pay off your mortgage—a loan requirement—or for in-home care, home improvements or to help make ends meet.
Best for owners who need cash now: Fairway Independent Mortgage
Generally, the reverse mortgage application process ranges from 30 to 45 days. Remember, the Department of Housing and Urban Development (HUD) requires you to complete reverse mortgage counseling before you can apply. You may need to be patient to receive your money.
Fairway Independent Mortgage has been working to accelerate its funding times, and the lender can close some loans in as few as 17 days. So if you need cash soon, the company may be worth considering. Still, it's always wise to shop and compare multiple loan offers to identify loans with the best balance of rates, flexible funding and repayment terms, fees and other considerations. Use the below table to explore some of your best options in one place.
The bottom line
Getting a reverse mortgage can help you access the cash you need, but it's not without risk. If you don't live in your home as your primary residence, fail to upkeep it or fall behind on required costs like property taxes or HOA insurance, the lender could foreclose on your home. And you should be cognizant of any reverse mortgage red flags, particularly when your home is at stake.
If you want to learn more, you can speak with your current bank or credit union or get quotes from the above lenders. Comparing several reverse mortgage loan options can help you identify which one best addresses your short-term and long-term needs.
