Best reverse mortgage companies
In today's shifting economic climate, marked by persistent inflation, high rates and other challenges, many Americans are seeking additional income sources to alleviate the financial pressures they're facing. For senior homeowners, one viable option is a reverse mortgage, which is a unique type of mortgage that allows individuals aged 62 or older to convert a portion of their home equity into cash.
This financial tool can be especially useful for senior homeowners, as it offers flexibility in disbursement, including lump-sum payments, lines of credit or monthly installments. Repayment is typically managed through the sale of the home by the borrower or their heirs — meaning that the borrower doesn't have to repay what's owed until they sell their home or die. That alleviates some of the pressure that borrowing money would otherwise place on their budgets.
If you're considering a reverse mortgage, though, it's essential to evaluate various lenders to find the best fit for your needs. 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 overall: Fairway Independent Mortgage
Fairway Independent Mortgage Company stands out for its extensive network of local offices, providing personalized, in-person support. The company boasts strong customer reviews and maintains an A+ rating with the Better Business Bureau (BBB). Fairway offers multiple disbursement options, including lump-sum payouts, fixed monthly payments or lines of credit, adding flexibility to the mix. Homeowners with at least 50% equity in their home may qualify for a reverse mortgage through Fairway.
Best for low interest rates: Longbridge
Longbridge Financial is recognized for offering some of the lowest interest rates in the reverse mortgage sector. The company provides various products, including the Longbridge Platinum, which lowers the age requirement to 55 for eligible borrowers. Longbridge also offers the HECM for Purchase reverse mortgage, enabling seniors to buy a new primary residence while reducing out-of-pocket expenses. Their website features comprehensive resources, including a reverse mortgage calculator and a detailed FAQ section.
Best for customer service: Finance of America
Finance of America Reverse offers a diverse range of reverse mortgage products tailored to meet various financial needs. The lender pairs an A+ BBB rating rating with a high TrustPilot rating, reflecting strong customer satisfaction. Their website provides an informative blog, a mortgage calculator and an extensive FAQ page to assist borrowers in making informed decisions.
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.
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.
