When used wisely, a reverse mortgage can be a powerful tool for enhancing your retirement.  However, choosing the right reverse mortgage lender is key to ensuring long-term financial stability. In this guide, we’ll explain how HECM lenders are rated and how online reviews help paint a clearer picture of their reliability.

To make your decision easier, we’ve compiled a list of the top 20 reverse mortgage companies across the nation, along with five essential tips for selecting the lender that’s right for you.

ARLO presents top 5 reverse mortgage lender tips

5 Essential Tips for Choosing the Right Reverse Mortgage Lender

1.  Work with a Lender Who Understands Your Needs

It’s crucial to work with a reverse mortgage lender who truly understands your individual needs and long-term goals.  A knowledgeable lender won’t just focus on one aspect, like lower fees, but will look at the whole picture—helping you find the most suitable program for your unique circumstances.

For instance, while one lender may offer a slightly lower appraisal fee, saving you a small amount upfront, they might also provide less overall loan value or higher interest rates, which could cost you thousands more in the long run.  A good lender will take time to evaluate your situation, ensuring you choose the reverse mortgage plan that best supports your financial goals and helps you make the most of your home equity.

2.  Carefully Review Online Customer Feedback

Reading what other customers say about reverse mortgage lenders online is a good idea.  But be cautious about where these reviews come from.  Some websites that help find customers for these companies might not have honest reviews, as money can influence them.

Instead, look for reviews on reliable sites like the Better Business Bureau (BBB) or Google Ratings.  Real customers write reviews on these sites, and lenders can’t change them.

Pay attention to any issues that keep coming up in the reviews.  If you see the same problems mentioned repeatedly, avoiding those providers is best.  Remember, this loan is for your benefit, not the lender’s.  The best reverse mortgage for you is one that fits your specific situation.

What works for some might not be right for you.  At All Reverse Mortgage, our goal is to give you all the information you need to make a choice that truly fits your needs rather than just selling you a loan.

3.  Compare All Loan Details, Including Margins and Closing Costs

When considering a reverse mortgage, it’s important to compare all aspects of the loan, not just the fees.  By law, lenders can’t add extra charges to 3rd party fees such as appraisals, title fees, and credit reports.  Lenders can only charge what those services actually cost.

One thing you should pay attention to is the lender margin.  A higher lender margin means you could end up paying a lot more in interest over the years, and you might get less money from the loan.

Here’s something else to consider: the Upfront Mortgage Insurance Premium (UFMIP) is usually 2.0% of your home’s value, up to a maximum home value of $1,209,750.  So, the highest UFMIP could be as much as $24,195.00.  Some loan options might let the lender cover some or all of this cost, saving you money upfront.

That’s why it’s important to compare different loans and see which is best for your situation. Don’t just look at the fees; consider how the loan performs over time.

4.  Make Sure Your Lender is HUD-Approved

For your protection, verify that your chosen lender is approved by the U.S. Department of Housing and Urban Development (HUD).  You can easily check their approval status by visiting the HUD website and using their Lender List Search tool.

HUD approved reverse mortgage lender search

5.  Avoid Lenders Who Have Their Own Appraisal Services

It’s best to avoid lenders that use their appraisal services, as this may limit your options and affect the objectivity of your home’s value.  Shop around, compare quotes, and ensure the loan officer and the company have the proper qualifications and licensing.

Top 20 Reverse Mortgage Lenders: National Rankings

LenderRatingYears in BusinessStars (0-5)Good Review %ComplaintsBBB Review
All Reverse Mortgage, Inc. (ARLO)A+204.99/599.8%0Source
Advisors Mortgage GroupA+251.00/520.0%6Source
Atlantic Avenue Mortgage LLCB+24.94/598.8%2Source
American Pacific MortgageF282.00/540.0%13Source
Ennkar Inc.A+144.00/580.0%2Source
Fairway Independent MortgageA+284.435587.0%35Source
Finance of America Reverse LLC (FAR)A+211.00/520.0%30Source
GoodLife Home LoansA+124.43/588.6%0Source
Guild Mortgage Company (Formerly Cherry Creek LLC)A+641.36/527.2%34Source
HighTechLending IncA+184.93/598.6%0Source
Liberty Home Equity Solutions Inc.A+211.00/520.0%2Source
Longbridge Financial LLCA+123.78/575.6%19Source
Mid America Mortgage Inc.A+66NANANASource
MoneyhouseNR27NANA0Source
Movement Mortgage, LLCA+174.80/595.6%109Source
Mutual of Omaha MortgageA+113.92/578.4%45Source
Open Mortgage LLCA+212.60/552.0%1Source
Plaza Home Mortgage IncA+242.47/549.4%13Source
Smartfi Home LoansA+5NANA0Source
South River Mortgage, LLCA+53.16/563.2%15Source
This chart compares the top 20 reverse mortgage lenders in the U.S. based on national rankings, displaying key metrics such as their BBB (Better Business Bureau) rating, years in business, average star rating, percentage of positive reviews, number of complaints, and sources of reviews. Top 20 HECM lenders reported by https://www.rminsight.net/wp-content/uploads/2024/12/Originators_202410.pdf. (Reviews Updated: December 18, 2024).

Key lender highlights:

  • All Reverse Mortgage, Inc. (ARLO) stands out with an exceptional A+ rating, a near-perfect 4.99/5 star rating, and an impressive 99.8% positive reviews, with no complaints reported.
  • HighTechLending Inc. also excels with an A+ rating, a 4.93/5 star rating, 98.6% positive reviews, and no complaints reported.
  • GoodLife Home Loans earns an A+ rating with strong customer satisfaction, holding a 4.43/5 star rating and 88.6% positive reviews, with no complaints reported.
  • Movement Mortgage delivers solid performance with an A+ rating, a 4.80/5 star rating, and 95.6% positive reviews, though 109 complaints have been reported.
  • Atlantic Avenue Mortgage LLC shows promise with a B+ rating, an impressive 4.94/5 star rating, 98.8% positive reviews, and only 2 complaints despite being in business for just two years.
  • Ennkar Inc. holds an A+ rating with a respectable 4.00/5 star rating and 80% positive reviews, with only 2 complaints.
  • Mutual of Omaha Mortgage performs well with an A+ rating, a 3.92/5 star rating, and 78.4% positive reviews, though it has 45 complaints reported.
  • Longbridge Financial LLC maintains an A+ rating but has a moderate 3.78/5 star rating and 75.6% positive reviews, with 19 complaints reported.
  • Finance of America Reverse (FAR) and Liberty Home Equity Solutions Inc. both have A+ ratings but extremely low satisfaction scores, each with a 1.00/5 star rating and only 20% positive reviews. FAR has 30 complaints, while Liberty has 2 complaints.
  • Advisors Mortgage Group holds an A+ rating but struggles with a 1.00/5 star rating, 20% positive reviews, and 6 complaints reported.
  • Plaza Home Mortgage Inc. and South River Mortgage show mixed results with A+ ratings but low satisfaction scores of 2.47/5 and 3.16/5, respectively, and significant complaints (13 for Plaza and 15 for South River).
  • American Pacific Mortgage underperforms with an F rating, a 2.00/5 star rating, and only 40% positive reviews, with 13 complaints reported.

Frequently Asked Questions (FAQs)

Q.

What banks do reverse mortgages?

Most major banks exited the reverse mortgage industry years ago.  Non-bank lenders, brokers, small banks, and credit unions are now the main sources.  While most reverse mortgages are insured by the Federal Housing Administration (FHA) and follow the same rules, each lender offers different margins and interest rates.
Q.

Who is the highest-rated reverse mortgage company?

To find the best-rated reverse mortgage provider, research from our top 20 lenders list and avoid sponsored reviews.  Look for reviews on independent sites like the Better Business Bureau, Google, and Yelp.
Q.

Does HUD offer reverse mortgages?

HUD does not originate loans but approves lenders to create federally insured HECM loans.  HUD insures these loans and guarantees many features and safeguards.
Q.

Are all reverse mortgage companies the same?

No.  Every reverse mortgage company operates independently.  HUD sets the guidelines but does not originate loans.  Make sure your lender is HUD-approved and a member of NRMLA.
Q.

How do I know I’m getting the best reverse mortgage?

The best reverse mortgage fits your specific needs.  Compare different offers, look at the loan terms, and ensure the lender provides clear documents.  Check unbiased reviews from reputable sites like the BBB and Google.
Q.

How do reverse mortgage lenders determine the interest rates?

Lenders set interest rates based on their costs and profit margins.  Research and compare rates from different lenders.  Check HUD’s records for actual loan rates.
Q.

Who lends the actual money on a reverse mortgage?

Lenders use warehouse lines of credit to fund loans.  HUD insures these loans, which are then pooled and sold as securities.  Most reverse mortgages are HUD Home Equity Conversion Mortgages (HECM).
Q.

Which reverse mortgage companies have the lowest closing costs?

Closing costs depend on several factors, including interest rates, loan programs, and lenders.  It’s important to compare the entire proposal because low closing costs might not be beneficial if they result in a higher margin, leading to fewer loan proceeds and significantly higher interest payments over the loan’s life.  We strongly advocate for borrowers to make comparisons.  Since interest rates and fees can change, don’t just take our word for it.  Look at the actual numbers and decide what’s best for your situation.
Q.

Can a reverse mortgage lender change without the homeowner’s knowledge?

Yes, a reverse mortgage lender can sell the loan or change the servicer.  The loan terms remain unchanged, and the new lender must notify you.
Q.

Can a lender lower the borrower’s benefit amount after the loan closes?

No, the lender cannot change the terms of a reverse mortgage after closing.  However, you must meet certain conditions to remain in good standing with the loan.

Summary: How to Choose the Right Reverse Mortgage Lender

Reverse mortgage lenders use various methods to reach out to you.  Here’s how to make a wise choice:

  • Look at Independent Reviews and Offers: Don’t just go by ads.  Check independent reviews and compare offers.
  • Choose HUD-Approved Lenders: These are usually direct lenders, saving you time and money.
  • Check for NRMLA Membership: Ensure the lender follows NRMLA code of ethics.
  • Avoid High-Pressure Sales: Avoid lenders who pressure you into quick decisions.
  • Get Independent Counseling: Counseling helps you understand your options and ensure a reverse mortgage is right for you.

Information for Past Customers of Inactive Companies

Lender
Wells Fargo Reverse MortgageRead More
Bank of America Reverse MortgageRead More
Financial Freedom Reverse MortgageRead More
MetLife Reverse MortgageRead More
RMS - Reverse Mortgage Solutions Read More
LiveWell FinancialRead More
Resolute Bank Read More

How to Find the Right Reverse Mortgage Lender?

ARLO recommends these helpful resources: