The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →There is no source-backed “best” reverse mortgage company for every homeowner. The right choice depends on the loan type, your state and home, your age, the amount and timing of proceeds, the loan’s costs and obligations, and what you want to happen to the home later. Compare written offers from multiple lenders, and treat the companies below as candidates to investigate—not as independently tested recommendations.
What kinds of reverse mortgages can you compare?
The Federal Trade Commission identifies three broad types of reverse mortgages: Home Equity Conversion Mortgages (HECMs), proprietary reverse mortgages, and single-purpose reverse mortgages. Their rules and uses differ, so start by confirming which type a lender is offering.
- HECM: The most common reverse mortgage and the only type insured by the federal government. FHA-approved lenders originate HECMs. They can generally be used for any purpose. See the CFPB’s overview of reverse mortgages and HUD’s HECM information.
- Proprietary reverse mortgage: A private loan that is not federally insured. Some are designed for homeowners with higher-value homes. Do not assume a proprietary loan follows every HECM rule or protection; ask the lender to identify which protections apply. The CFPB’s July 2026 reverse-mortgage servicing procedures distinguish proprietary loans from federally insured HECMs.
- Single-purpose reverse mortgage: A loan restricted to a specified use. Availability and terms depend on the program.
HECMs are generally for homeowners age 62 or older, and borrowers must meet principal-residence, ownership or equity, and counseling requirements. Private products may set different age and eligibility rules. Check the specific product and state rather than relying on a company’s general marketing. The CFPB eligibility overview explains the general HECM requirements.
Which reverse mortgage companies are worth comparing?
Massachusetts’ Division of Banks lists the following companies among its approved reverse-mortgage lenders and programs. That list establishes approval in Massachusetts only; it is not a nationwide license check, endorsement, or assessment of loan value or service. Confirm that a lender and its particular program are authorized and available where you live.
#1 Best Overall
| Company | Products established by the cited sources | State evidence | Rates, fees and payout choices |
|---|---|---|---|
| Finance of America Reverse LLC | Its product page describes HECM and proprietary HomeSafe products. The page says availability, age requirements and features vary by state and product. | Listed by the Massachusetts Division of Banks; this does not establish availability in other states. | Not stated on the cited sources; request current written terms. |
| Longbridge Financial LLC | Its site describes standard HECM and proprietary Platinum products. Longbridge states that HECM minimum age is 62 and Platinum eligibility may vary by state and include ages 55–61; verify terms for the particular borrower. | Listed by the Massachusetts Division of Banks; this does not establish availability in other states. | Not stated on the cited sources; request current written terms. |
| Mutual of Omaha Mortgage, Inc. | Included in HECM direct-retail endorsement reporting for February 2026. | Listed by the Massachusetts Division of Banks; this does not establish availability in other states. | Not stated on the cited sources; request current written terms. |
| PHH Mortgage Corporation d/b/a Liberty Reverse Mortgage | The cited state list identifies the lender and program, but the cited sources do not establish product details for comparison. | Listed by the Massachusetts Division of Banks; this does not establish availability in other states. | Not stated on the cited sources; request current written terms. |
Sources for the company product descriptions and state listings: Finance of America Reverse, Longbridge Financial, and the Massachusetts Division of Banks approved lender list. A February 2026 HECMWorld report puts Mutual of Omaha Mortgage at 20.37%, Finance of America Reverse at 19.99%, and Longbridge Financial at 16.7% of that month’s direct-retail HECM endorsements. These are one-month volume shares, not all originations and not evidence of lower cost, better service, borrower satisfaction, or suitability. See the February 2026 report.
How should you compare lenders and loan offers?
Ask each lender for terms on the same assumptions—borrower ages, estimated home value, existing mortgage balance, property type, state, and intended use of the money. The amount available generally depends on borrower age, interest rate, and applicable home-value limits, so a larger advertised figure alone does not show which offer is better. Compare:
- Product and protections: Is it an FHA-insured HECM, a proprietary loan, or a restricted single-purpose loan? Ask which consumer protections apply.
- Eligibility and availability: Which borrowers, property types, and states qualify for this product? Are there additional ownership or occupancy requirements?
- Proceeds and access to funds: How much could you receive, when would funds be available, and what payout choices does the specific product offer? Ask how choosing one option affects the amount available later.
- Interest and fees: Is the rate fixed or adjustable? Request a written breakdown of origination charges, third-party closing costs, mortgage insurance, servicing fees, and any other charges.
- Servicing and communication: Who services the loan, how can you reach them, and how will you receive notices about occupancy, property charges, or repayment?
- Spouse, heirs, and repayment: Ask what happens if one borrower dies or moves, how a spouse who is not a borrower is treated, when the balance becomes due, and what options heirs have.
- Flexibility and alternatives: Ask what happens if you sell, move, need to relocate for care, or want to use the home’s equity in another way. Compare a home-equity loan or line of credit, refinancing, and selling and downsizing where appropriate.
The FTC recommends shopping around. Use the CFPB counselor checklist to prepare questions about costs, family members living in the home, selling, heirs, proceeds, and alternatives.
What does a reverse mortgage cost?
For HECMs, the CFPB says upfront costs typically include an origination fee, third-party closing costs, and an initial FHA mortgage-insurance premium. Its cost guidance says “Origination fees ($6,000 or less, paid to the lender).” That page was last reviewed May 28, 2024; treat the figure as dated guidance, not a current quote or a cap for every product. Request current disclosures and itemized estimates. See the CFPB HECM cost explanation.
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Ongoing costs can include interest, servicing fees, annual mortgage insurance, and property charges. Interest and fees added to the loan balance increase what must eventually be repaid, while the homeowner’s equity generally declines. Costs and terms can vary by lender and loan type, so compare equivalent written estimates rather than a headline loan amount.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What obligations and risks remain after closing?
A reverse mortgage is a loan, not a grant. As the CFPB puts it, “A reverse mortgage loan is not free money.” HECM borrowers generally do not make ordinary monthly principal-and-interest payments, but they must continue to pay property taxes and homeowners insurance, maintain the home, and meet occupancy conditions. Failing to meet required obligations can put the borrower in default and may lead to foreclosure. The CFPB describes borrower protections and responsibilities; the FTC reverse-mortgage guide also explains how the loans work and why consumers should compare offers.
The loan generally becomes due when the last borrower dies, sells the home, or no longer lives there as a principal residence, or when required property obligations are not met. Discuss the specific treatment of a spouse who is not a borrower and the choices and deadlines heirs may face with the lender and a HUD-approved counselor. A growing balance can leave less equity for future needs or heirs, and may limit the ability to move later.
Be wary if a contractor or salesperson pressures you to borrow for repairs or claims the loan is a government benefit. The CFPB warns about contractors steering homeowners into reverse mortgages and false claims that the VA offers them. Most reverse mortgages have a three-business-day right to cancel after closing, according to the CFPB, but the rule’s application depends on the product and circumstances; check your loan documents and applicable law. If it applies, written notice to the lender is required.
Quick Recap
What should you do before applying?
- Write down your goals and household plans. Note why you need the money, how long you expect to stay, who lives in the home, and what future care or moving plans might affect occupancy.
- Talk with a HUD-approved housing counselor. HECM counseling is required, and counseling covers costs and alternatives. Use HUD’s HECM information page to find official program information; do not pay a third party for information that HUD provides free.
- Get comparable written offers. Ask more than one lender to estimate the same loan scenario and itemize costs, rates, payout structure, servicing, and conditions that could make the loan due.
- Check local authorization and product rules. Confirm licensing and availability with your state regulator and verify current eligibility directly with the lender. The Massachusetts list is relevant only to Massachusetts.
- Review the decision with the people affected. If you have a spouse, family member, caregiver, or likely heir involved in your housing or finances, discuss the loan’s effects before signing.
- Do not sign under pressure. Take time to read the disclosures, compare alternatives, and ask the counselor or lender to explain any term you do not understand.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
