Best Reverse Mortgages
Based on In-Depth Reviews

Best for Relocating and Downsizing

American Advisors Group (AAG) stands out from its competitors for having a remarkable Home Equity Conversion Mortgages (HECM) for Purchase program. Through AAG Residential Services (AAGRS), a licensed real estate brokerage firm and subsidiary of AAG, older adults can get the help they need to sell their homes and relocate. This can be very helpful for those who feel their home is too large or too far away from the people and things they care about. It also provides the same advantages of traditional HECMs by eliminating monthly mortgage payments on your new home, thereby helping your cash flow.

AAG requires that brokers meet certain criteria before working with them. They must complete an older adult awareness course and comply with a strict code of conduct. AAGRS also says that they only hire real estate agents with full-time experience helping clients over 55 years old.

When asked over the phone, AAG focused on explaining the ins and outs of how their HECM for Purchase program worked instead of rushing to ask where or when we wanted to relocate. The company took its time to explain how its residential services work and helped us explore the qualities we would like in a new home.

Size, Scope, and Experience

Consumers looking to borrow from a large, experienced, and well-established company are likely to be satisfied with what AAG has to offer on that front. The company was founded in 2004 and is one of the longest-standing companies to focus on reverse mortgage lending.

AAG currently operates in 49 states and the District of Columbia. Additionally, approved for business by the Department of Housing and Urban Development (HUD) in 81 geographical areas. The widespread availability of its services is directly tied to the large number of clients that the company is able to work with.

AAG has been the leading originator of reverse mortgage loans in the country since 2013. In fact, the company closes more than twice the number of loans that competitors do, with 1024 loans originated in February 2019 alone.

Additional Products and Services

AAG offers other products besides the HECM and HECM for Purchase programs. Consumers in certain states may also apply for the lender’s proprietary reverse mortgage, called AAG Advantage. AAG offers Home Mortgage-Backed Securities (HMBS), as well, which it started issuing in 2013. The company also has other types of products available, such as mortgage refinancing and VA loans.

AAG Advantage, works very much like other proprietary loans available in the market today. Borrowers may access up to a total of $4,000,000 and the funds may be withdrawn in full immediately. The loan is not insured by the FHA, meaning certain fees—such as mortgage insurance premiums—are not applicable. In order to qualify, the borrower must own a high-value property and the loan must be able to deliver more proceeds than a traditional reverse mortgage.

The company also offers more mainstream loan programs, such as mortgage refinancing and VA loans. AAG’s loan refinancing is designed to help those who aren’t yet 62 years of age and therefore do not qualify for a reverse mortgage. The program is designed to modify the length of a pre-existing mortgage loan, lock in a better rate, lower monthly bills, and tap into the home’s equity. Likewise, AAG’s VA loan program is designed to help veterans that may qualify for a reverse mortgage, but still need the additional financial help for retirement.

Best for Online Functionality

Longbridge Financial has by far the best online experience and tools among all the reverse mortgage lenders we reviewed. The company’s website is intuitive—easy to scan and to navigate. Its combination of extensive learning material and well-designed reverse mortgage calculators means almost any user will find something to interact with on the site.

The website’s landing page makes it easy to immediately pinpoint the information that matters. There are four “profiles” to choose from; each one targets specific concerns and levels of knowledge about reverse mortgages, from none to extensive. Clicking on a profile redirects the user to information which can help that specific type of homeowner through the decision-making process. Consumers who have carefully researched reverse mortgages are just as likely to learn something new as those who barely know anything about the product.

The learning material on Longbridge’s website is segmented into three major categories: Reverse Mortgage 101, What to Expect, and Reverse Mortgage Products. This makes it easy for anybody who wants to fully explore the website by themselves to find what they are looking for. The information itself is quite thorough; it covers all the basics of reverse mortgages, but also some of the more intricate topics regarding these products. Additionally, the layout, typeface, and occasional use of video content make for an interactive and streamlined reading experience.

Longbridge features the most robust reverse mortgage calculator in the industry, with highly specific results thanks to the number of fields that must be filled out. Users must first input their estimated home value, but if they’re not sure, they can also use Zillow to get an estimate based on their address. After filling out the rest of the form, they are shown pie charts for both a traditional HECM and the Longbridge Platinum proprietary loan. They can also see what the projected growth would be if they chose to receive their reverse mortgage as a line of credit.

Outstanding Reputation

Longbridge has one of the strongest reputations in the entire reverse mortgage industry. The company is led by Christopher Mayer, an MIT PhD who also serves as a Paul Milstein Professor of Real Estate at Columbia Business School. Mayer was also Senior Vice Dean and Director of the Milstein Center and has held positions at the Wharton School and the Federal Reserve. All of the company’s loan officers, most of whom have worked for years or decades in the mortgage industry, are shown on the team page along with a short introduction and their NMLS agent code, which can be used to look up any regulatory actions that have been taken against them.

Longbridge is a member of the NRMLA and was approved as a Ginnie Mae issuer of HECM-mortgage backed securities (HMBS) in 2017. Alicia M. Munnell, one-time Assistant Secretary of the Treasury for Economic Policy, and who has been at the forefront of advocating for the reverse mortgage industry for decades, also gave the company its approval and even invested in it.

On the consumer side, Longbridge boasts excellent reviews on each third-party review aggregator it appears in. It’s accredited by the BBB and currently holds an A+ rating with the bureau. Additionally, it only has three complaints in the CFPB—two of which received a timely response—and a single regulatory action against it listed in the NMLS.

Unique Programs

In addition to the HECM and HECM for Purchase programs, Longbridge also offers its own proprietary loan called the Longbridge Platinum. As with other proprietary reverse mortgages, the loan is not backed by the FHA and features a loan amount maximum of $4,000,000. Under certain restrictions, the loan allows homes with a current solar panel lease, may qualify condos that haven’t been approved by the FHA, and is currently available in 17 states.

Finally, Longbridge also provides the “Gold Program,” a reverse mortgage program with lower fees and rates exclusive to those who meet certain additional requirements. In order to qualify, applicants must have a credit score of at least 660, using the MidFICO. Manufactured homes will not qualify for this program.  

Most Flexible Proprietary Loan

Of all the lenders currently offering proprietary reverse mortgages, Finance of America Reverse stands out for a number of reasons. For starters, its proprietary loan, the HomeSafe® reverse mortgage, is more a suite of tools than a single, one-size-fits-all type of loan.

There are three versions of the HomeSafe® proprietary loan: HomeSafe Standard, For Purchase, and Select. The biggest difference between them is how funds are disbursed to borrowers. HomeSafe Standard offers single, lump sum payments and HomeSafe Select is an adjustable-rate option that functions as a line of credit. Finance of America Reverse offers greater versatility in terms of payment options than many of its competitors.

Requirements for FAR’s HomeSafe® products are quite reasonable. Even condos that haven’t been approved by the FHA may qualify if their value is of over $500,000. There is no minimum property value and non-borrowing spouses are protected under specific circumstances.

HomeSafe® is also the proprietary reverse mortgage with the greatest regional availability in the market. HomeSafe Standard loans are available in a total of 26 states. HomeSafe Select is available in California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Minnesota, Missouri, Michigan, Nevada, North Carolina, Ohio, Texas, Virginia. FAR intends to expand its coverage and has recently added a few states to its list of covered locations.

Widest Selection of Products

We found that Finance of America Reverse had one of the largest product portfolios in the industry, with five different available options: HomeSafe®, HECM, Reverse for Purchase (H4P), Refinancing, and Silvernest. Most reverse mortgage companies only offer FHA-insured loans, with only a few lenders having a proprietary option.

FAR’s Refinancing option is unique in the industry. It's an HECM-to-HECM refinancing program that works similarly to regular loan refinancing. The program can help those whose homes have significantly appreciated in value, who want to take advantage of lower rates, and who want to add another borrower to the loan—a spouse, for example.

Finally, FAR borrowers have another option to consider thanks to the company’s partnership with Silvernest. A room and house-sharing service, Silvernest matches users with potential housemates in their area for a fee. It does this via detailed profile analysis and can provide aging homeowners with extra income and companionship. Those with an active FAR loan are provided with a one-year subscription and have the cost of matching with a housemate covered.

Top-Notch Online Experience

Finance of America Reverse’s website is straightforward. It offers a a number of learning resources, including a handy loan calculator and retirement personality quiz.

Information on FAR is easy to access, with one tab dedicated to exploring the options available through the lender, and another focused on how to be ready for retirement. FAR also has an articles and news section, where users can find numerous writeups not only about retirement products, but also about retirement living as whole. The company’s retirement personality quiz can also help pinpoint the right product for a consumer depending on what their outlook on retirement is.

FAR’s reverse mortgage calculator is simple but can provide a good projection of how one’s equity will translate into funds. After inputting just four values—age, home value, mortgage balance, and state of residence—users are redirected to a pie chart showing the total amount of proceeds, mortgage payoff, proceeds available after paying off your mortgage, and remaining equity. A second chart will appear with the same fields but based on a HomeSafe® loan, for qualifying homes in states where it’s available.