Reverse Mortgage Lenders

Reverse Mortgage: About

A reverse mortgage (otherwise known as a home equity conversion mortgage HECM) loan differs from a traditional home mortgage, as it is a process that lets you borrow funds against your equity of your home.

  • The borrower does not have to repay the mortgage until he/she is 1. deceased 2. sells the property 3. voluntarily pays it off in cash or refinancing.
  • The loan will not exceed the value of the home equity throughout the span of the loan.
  • You cannot take a reverse mortgage loan if you have a lien against your property.
  • The borrowers credit is not checked when a reverse mortgage is taken out, as the loan is entirely based on the equity he/she has on the property the loan is taken out against (collateral).

Reverse Mortgage: Lenders

Below, we’ve handpicked the three top reverse mortgage lenders on the market. We’ve selected them based on longevity, quality of support, and easy of loan acquisition.

1. AAG

About AAG Reverse Mortgages

AAG is a HUD approved lender that specializes in reverse mortgages.

You can reach AAG by calling: 1-800-AAG-0103

Or visit their website here.

3. Finance of America



About FoA Reverse Mortgages

FoA is a well-reviewed reverse mortgage lender that has a simple and intuitive application process.

You can reach FoA by calling: 1-877-658-7226

Or visit their website here.

Reverse Mortgage: Faq

  • You still own your home after taking a reverse home mortgage.
  • In the case your home increases in value and you wish to sell it, the difference you gain above your reverse mortgage is yours.
  • Mobile homes are not eligible for reverse home mortgages.
  • Like a personal loan, you can use the funds from a reverse mortgage on anything.
  • A reverse home mortgage is classified as loan proceeds, not income. Thus it does not impact your social security, medicare, or pension benefits.
  • A reverse home mortgage loan becomes “due” in the case:
    • You sell or transfer ownership of the home.
    • You pass away.
    • You do not pay home insurance or home taxes.
    • You no longer occupy the home as a primary residence or leave the home for more than 12 consecutive months.
    • You do not adhere to the specific terms of the lender.

Reverse Mortgage Requirements

  • Usually, to take a reverse home mortgage, you must be over 62 years of age.
  • Before receiving a loan, the lender usually send an appraiser to estimate the value of the property, in order to get a figure for the max sum of the loan.
  • You must occupy your property as a primary residence, in order to qualify for a reverse home mortgage.

Reverse home mortgages are not for everyone. It is a good idea to look over all of your options and other loan instruments, such as a home equity loan.

Reverse Mortgage Example

If your home’s market value is $400,000 (appraised at this rate) and you have $300,000 owned (equity), you can get a reverse mortgage loan for upwards of $300,000 minus the loans sum interest rates and lender fees. This is further determined on whether you take out the loan in a lump sum or in annuity (continuous ongoing payments).

You can repay the reverse home mortgage loan by simply refinancing with a traditional mortgage loan (paying off the reverse mortgage loan you signed).