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Find the Best Reverse Mortgage in 2026

Compare top-rated, FHA-insured lenders side-by-side. Access tax-free cash while retaining your home’s title.*

Compare top lenders Estimate my cash →
FHA-insured HECM options Tax-free* funds Editorially reviewed Keep your home’s title
By Leslie Cook Lead Editor, Real Estate — Money.com EditorBy Mike Ayers Executive Editor at Money Magazine
Updated June 20, 2026 How we rate

How to choose the best reverse mortgage

There is no single “best” reverse mortgage—the right option depends entirely on your goals, whether you want a lump sum, a flexible line of credit, or steady monthly income. We recommend you talk with multiple lendersTalk with multiple lenders: Connecting with two or three top providers gives you a full picture of your options and validates that you’re getting a great fit., compare the total packageCompare the total packages: Review the estimated payouts and overall structure side-by-side to see what aligns best with your retirement plan. each one offers you, and prioritize clear communicationsPrioritize clear communication: Lean toward lenders who take the time to answer your questions in plain English and make you feel comfortable..There’s no single “best” reverse mortgage — it depends on your goals. Talk with multiple lenders, compare each total package, and prioritize clear communication.

Finance of America

  • Get your INSTANT reverse mortgage estimate today
  • Wide product selection that may fit your unique needs
  • Move at your own pace – no commitments to apply
Our Score
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Continues to Finance of America’s official site ↗

Longbridge Financial

  • Free quote and easy application process
  • All HECM programs available
  • A+ BBB rating and HUD approved direct lender and servicer
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Get Estimate

Continues to Longbridge Financial’s official site ↗

American Senior

  • Wide range of products for 55+
  • FHA & HUD approved - direct lender
  • Quick processing for expedited funding
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Premier Reverse Mortgage

  • A+ rating with the BBB
  • Competitive pricing on loans due to low overhead
  • All products available - HECM adjustable, HECM fixed, & private jumbo
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Continues to Premier Reverse Mortgage’s official site ↗
Free HECM estimate · No personal info

How much could you unlock?

Move the sliders — the estimate recalculates live using HUD’s reverse mortgage formula. Nothing is submitted.

627690+
$
$

Estimated cash you could access

$123,600

Home value used (MCA)
$450,000
× Principal limit factor (age 70)
44.8%
Gross principal limit
$201,600
− Origination fee (HUD cap)
−$6,000
− Upfront mortgage insurance (2%)
−$9,000
− Est. closing costs
−$3,000
− Pay off current mortgage
−$60,000
See lenders that match

Illustrative estimate only — not an offer, quote, or commitment to lend. Assumes an FHA-insured HECM with a ~6.5% expected rate; the principal limit factor is interpolated from HUD’s published factor curve, which depends on the youngest borrower’s age and the loan’s actual expected rate. Origination fee uses the HUD cap (2% of the first $200,000 + 1% above, min $2,500 / max $6,000); upfront mortgage insurance is 2% of the maximum claim amount (HUD Mortgagee Letter 2025-22 set the 2026 limit at $1,249,125). Closing costs are a flat estimate. Your actual figures depend on a lender’s appraisal, the program you choose, and current rates.
How it works

A reverse mortgage in four simple steps

A reverse mortgage lets eligible homeowners convert part of their home equity into cash — without selling, moving, or taking on a monthly mortgage payment.

  1. 1

    Check your eligibility

    Most reverse mortgages require a homeowner aged 62+ (some proprietary “jumbo” programs start at 55) with significant equity in a primary residence.

  2. 2

    Complete HUD counseling

    A short, independent session with a HUD-approved counselor confirms a reverse mortgage is right for you — it’s required for FHA-insured HECM loans.

  3. 3

    Choose how you receive funds

    Take your tax-free* proceeds as a lump sum, monthly payments, a growing line of credit, or a combination — based on your goals.

  4. 4

    Stay in your home

    You keep the title and make no required monthly mortgage payments. The loan is repaid when the last borrower sells, moves out, or passes away — and it’s non-recourse, so you never owe more than the home is worth.

Compare your options

Reverse mortgage vs. HELOC vs. home equity investment

There are three main ways to turn home equity into cash — and they work very differently on monthly payments, how you qualify, and how they’re repaid. Here’s how a reverse mortgage stacks up. Swipe to compare →

Attribute Reverse Mortgage (HECM) No monthly payment Home Equity Line of Credit (HELOC) Revolving credit line Home Equity Investment (HEI) Share future value
How it works A government-insured loan that pays you out of your home’s equity.A traditional revolving credit card tied to your home’s value.An investor gives you cash now in exchange for a percentage of your home’s future value.
Age & qualification 62+. Requires a financial assessment to ensure you can afford property taxes and home insurance.18+. Requires a strong credit score (typically 680+), verifiable steady income, and low existing debt.18+. Flexible credit (often 500+); no strict income tests, but requires a large amount of existing equity.
Monthly payments None required.Required. (Often interest-only for the first 10 years, then larger payments to pay off the principal).None required.
Upfront costs High: Typically 2% to 6% of the home’s value (includes FHA insurance, origination, and closing costs).Low: Minimal origination fees, with closing costs frequently ranging from $0 to $500.High: 3% to 5% origination fee, deducted directly from your cash payout before you receive it.
Interest & ongoing fees Accruing interest builds up over time, plus an ongoing FHA insurance premium and monthly servicing fees.Variable interest applied only to the exact amount you borrow.No interest, but you “pay” by surrendering a massive share of your home’s future appreciation.
Tax & benefit impacts Proceeds are tax-free, but holding large cash advances in your bank account can disqualify you from Medicaid or SSI.Interest paid may be tax-deductible if the funds are used specifically to buy, build, or substantially improve the home.Proceeds are tax-free, but settling the contract later can trigger complex capital gains tax scenarios.
Impact on heirs & estate Heirs can inherit the home but must pay off the loan balance. If the debt exceeds the home’s value, they are protected and owe nothing extra.The outstanding balance is a debt against the estate. Heirs must pay it off (often by selling the home) to settle the estate.Heirs inherit the contract. They must have the cash to buy out the investor’s share, or they will be forced to sell the home.
Worst-case risk Foreclosure if you fail to pay property taxes, let home insurance lapse, or fail to maintain the home to FHA standards.Missed monthly payments can lead to immediate foreclosure. Variable rates can cause monthly payments to spike unexpectedly.The payoff formula can be drastically more expensive than a traditional loan. You may lack the equity needed to move or downsize later.

Disclaimer: This information is for educational purposes and does not constitute financial or legal advice. Because tapping home equity alters your net worth and estate, you should always consult a fiduciary financial planner or a HUD-approved housing counselor before signing a contract.

$1,249,125 The maximum claim amount for FHA-insured HECMs in 2026 will increase to $1,249,125. HUD.gov — FHA Announces 2026 Loan Limits
55+ The minimum age for a federally insured HECM is 62, while some private or jumbo reverse mortgages start as early as age 55. Federal Trade Commission — Reverse Mortgages
Non-Recourse Borrowers are protected when the amount they owe is more than the value of their home, which is known as a nonrecourse loan. AARP Policy Book — Reverse Mortgages
$0/mo You make no monthly mortgage payments with a reverse mortgage, but you must pay property charges, like property taxes and homeowners insurance, on time. CFPB — Reverse Mortgage Rights and Responsibilities (PDF)
Why homeowners choose it

Put your home equity to work — your way

Eliminate a monthly mortgage payment

Pay off your existing mortgage and free up monthly cash flow — you still own and live in your home.

Cover healthcare & in-home care

Fund medical costs or aging-in-place care without selling the home you love.

Build a standby line of credit

An unused HECM line of credit can grow over time — a flexible safety net for the unexpected.

Delay drawing Social Security

Use home equity to bridge income now so other retirement assets have more time to work.

Figures reflect FHA/HUD limits effective for 2026 and current federal consumer guidance; each is linked to its primary source above for verification. A reverse mortgage is a loan that must be repaid, and you must keep current on property taxes, homeowners insurance, and home maintenance.

Transparent scoring

How we score reverse mortgage lenders

Every lender is scored out of 10 using the same three weighted factors — no exceptions and no manual overrides. The model is published in full below so you can check our work. One factor, User Preference, measures real consumer engagement with our paid search and paid media placements, so advertising activity can influence it. Some companies on this page compensate us, which may affect placement and how offers appear. See the advertiser disclosure at the top of the page.

  • 40% Originations Reported loan-origination volume, log-normalized.
  • 30% Trustpilot Reviews Verified Trustpilot review volume, log-normalized.
  • 30% User Preference Unique clicks on our paid search & paid media placements, trailing 7 days.
Lender scores by factor, out of 10
Lender Originations40% Trustpilot Reviews30% User Preference30% Final score
1 Finance of America 9.87 9.96 9.67
9.84/10
2 Longbridge 9.58 9.45 9.15
9.41/10
3 American Senior 8.41 8.45 8.8
8.54/10
4 Premier 8.03 8.25 8.93
8.37/10

Each cell is that factor's score out of 10; the final score is their weighted average (40 / 30 / 30), not a sum. Scores run on an 8–10 scale: every lender shown has cleared our listing threshold, so the scale differentiates among already-qualified partners rather than the full 0–10. Each factor is log-normalized from an observable count — origination volume, Trustpilot review volume, and trailing-7-day unique clicks on our paid placements. Figures reflect data as of June 2026 and update as the underlying sources change. See the live rankings ↑

Reverse mortgage FAQs

What is a reverse mortgage?
A reverse mortgage is a loan that lets eligible older homeowners convert part of their home equity into cash. Instead of you paying the lender each month, the lender pays you — as a lump sum, monthly payments, a line of credit, or a combination. You keep the title to your home, and the loan is repaid when the last borrower sells, moves out permanently, or passes away.
Who qualifies for a reverse mortgage?
For an FHA-insured Home Equity Conversion Mortgage (HECM), you generally must be 62 or older, own your home (or have a low remaining balance), and live in it as your primary residence. Some proprietary “jumbo” programs accept borrowers as young as 55. You’ll also complete a short session with a HUD-approved counselor.
Will I still own my home?
Yes. You remain on the title and continue to own your home. You’re responsible for keeping current on property taxes, homeowners insurance, and basic maintenance. As long as you meet those obligations and the home stays your primary residence, you can stay as long as you like.
How much money can I get?
It depends on the age of the youngest borrower, current interest rates, your home’s appraised value (up to FHA limits for HECMs), and how much you still owe. Older borrowers and homes with more equity generally qualify for more. Our estimator above gives a rough range — a lender provides exact figures after an appraisal.
Is the money taxable?
Reverse mortgage proceeds are loan advances, not income, so they’re generally not taxable and typically don’t affect Social Security or Medicare. They can affect needs-based benefits like Medicaid or SSI. Consult a tax advisor about your specific situation.
What happens to my heirs?
HECM loans are non-recourse: your heirs will never owe more than the home is worth. When the loan comes due, they can repay the balance and keep the home, sell it and keep any remaining equity, or hand it to the lender. Any home value above the loan balance belongs to your estate.
What are the costs?
Reverse mortgages include closing costs, an origination fee, and — for HECMs — an FHA mortgage insurance premium. Many of these can be financed into the loan. Because costs and rates vary by lender, comparing several offers (as on this page) helps you find the best overall value.
What happens to my spouse if they're under 62 when we take out the loan?
If your spouse is under 62 at closing, they can be designated as an Eligible Non-Borrowing Spouse (ENBS) under HUD Mortgagee Letters 2014-07 and 2021-09. This means if you — the borrowing spouse — pass away or move permanently to a care facility, your spouse can remain in the home without the loan being called due, provided they continue paying property taxes and insurance and the home remains their primary residence. The trade-off: because the lender uses the younger spouse's age in the principal limit calculation, your upfront cash access will be lower than if both spouses were 62+. Always disclose a non-borrowing spouse to your lender before closing — failing to do so can void ENBS protections entirely.
How does the HECM line of credit grow, and is it better than a lump sum?
The unused portion of a variable-rate HECM line of credit grows automatically over time at the same rate as the loan's interest accrual rate (current interest rate + 0.5% annual MIP). For example, if your rate is 6.5%, an untouched $100,000 credit line grows to roughly $106,500 after one year — even if home values fall. This is a unique feature: it's not investment growth, but it means your available borrowing power expands the longer you wait to draw. A fixed-rate HECM, by contrast, pays out as a single lump sum at closing with no future access. The line of credit is generally the better structure for borrowers who don't need all the cash immediately — it preserves optionality and grows as a financial safety net. The lump sum makes sense when you have a specific, immediate large expense (like paying off a mortgage balance or funding a home modification).
What happens if I fall behind on property taxes or homeowners insurance?
This is the most common cause of HECM foreclosure. Because a reverse mortgage has no monthly payment, it's easy to underestimate the ongoing obligations — but property taxes, homeowners insurance, and basic home maintenance are non-negotiable conditions of the loan. If you fall behind, your servicer is required to notify HUD and can advance funds from your loan to cover the arrears (called a Life Expectancy Set-Aside, or LESA), reducing your available proceeds. If the default is not cured, the lender can call the full loan balance due and initiate foreclosure proceedings. The CFPB estimates that tens of thousands of HECM borrowers have faced this risk. If your income is limited, ask your lender upfront about a LESA — structuring one at closing protects you from the most common failure mode of a reverse mortgage.
What's the difference between a HECM and a proprietary (jumbo) reverse mortgage?
A HECM is federally insured by FHA, capped at the 2026 maximum claim amount of $1,249,125, and requires HUD-approved counseling. A proprietary (jumbo) reverse mortgage is a private product not backed by FHA — it has no loan limit ceiling, which makes it the right tool if your home is worth significantly more than the HECM cap and you want to access equity above that threshold. Proprietary products can also allow borrowers as young as 55 (vs. 62 for HECMs). The trade-off: proprietary loans carry no FHA non-recourse guarantee, may have different (sometimes higher) costs, and vary widely by lender since there's no standardized federal program structure. If your home value is under ~$800k–$900k, a HECM will almost always net you more after costs. Above that range, a proprietary loan is worth comparing side by side.
Will a reverse mortgage affect my Medicaid or SSI eligibility?
Reverse mortgage proceeds themselves are not counted as income by Medicaid or SSI — they are loan advances. However, if you receive a large lump sum and don't spend it within the calendar month you receive it, the remaining cash balance can be counted as a liquid asset. Medicaid has strict asset limits (typically $2,000 for an individual), so a large unspent lump sum could temporarily disqualify you from coverage. A line of credit or monthly payment structure largely avoids this problem because you draw only what you need when you need it, making it far easier to stay under the asset threshold. If you currently receive or expect to receive Medicaid or SSI, speak with a benefits counselor — not just a reverse mortgage lender — before choosing your payout structure. Social Security (non-needs-based) and Medicare are unaffected.
Can I refinance my reverse mortgage later if my home value rises?
Yes, but it's subject to HUD's 5-5 Rule: to refinance a HECM, the increase in your principal limit (the additional cash you'd get access to) must be at least 5 times the closing costs of the refinance, and you must have had the original loan for at least 5 years (there are exceptions for significant home value increases). If both conditions are met, refinancing can make sense — particularly if your home has appreciated substantially, the youngest borrower has aged (increasing the principal limit factor), or rates have shifted in your favor. Refinancing resets your upfront MIP (2% of the new MCA), so the cost hurdle is real. Request a break-even analysis from any lender proposing a refinance, and compare the net benefit against simply opening a new line of credit draw if your existing loan has unused capacity.

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