Looking for the best reverse mortgage companies? Keep reading the article to get an overall idea about the 6 best reverse mortgage companies in 2023. Along with we will go through the pros and cons of each company.
Reverse mortgages allow seniors to receive loans from their home equity, and they’re becoming increasingly popular in the United States. In a reverse mortgage, the homeowner gets a lump sum money or monthly payment in exchange for the equity of the house until they live in that house. After the death of the homeowner or if they decide to move out of the house, the heirs to that house pay back the accumulated loan or the lender gets paid back after the house is sold.
Best Reverse Mortgage Companies Of 2023 [Pros + Cons]
Many people still aren’t aware of what reverse mortgage company would work better for their needs. So this list will serve as a helpful resource when considering your options. Here are the 6 best reverse mortgage companies, including the pros and cons of each option.
- American Advisors Group (AAG)
- Liberty Reverse Mortgage
- Reverse Mortgage Funding
- Longbridge Financial
- Finance of America Reverse
- All Reverse Mortgage, Inc. (ARLO)
1. American Advisors Group (AAG)
With American Advisors Group or AAG reverse mortgage company, homeowners can withdraw money from their homes through an equity conversion loan, one of three ways to get cash from a reverse mortgage. The borrower can convert part or all of their equity into cash using an adjustable rate line of credit. There are no monthly payments, and the amount they owe will be paid out when they sell their home or pass away.
American Advisors Group was started in 1999 and is headquartered in Miami, Florida. They served clients throughout America and were an early entrant into one of America’s fastest-growing industries – reverse mortgages. In addition to having more than 200 lenders across 49 states, it is one of the best reverse mortgage companies.
However, like most loans, there are fees and interest associated with converting your equity in your home; one important consideration is that borrowers should think about what other expenses they may have after obtaining a reverse mortgage and how much money they might need every month when deciding how much to borrow.
Pros
- It can provide loans up to $4 million
- Good customer service
- Reputed, trustworthy and one of the top rated reverse mortgage companies in the united states
- The turnaround time from application to the closing of the loan is 30 days.
Cons
- You may pay around $6,000 annually for the PMI and other fees
Read – Difference Between Reverse Mortgage Vs. Forward Mortgage?
2. Liberty Reverse Mortgage
Founded in 2003, Liberty Mortgages are one of America’s top rated reverse mortgage companies. As a member of the National Reverse Mortgage Lenders Association (NRMLA), they’ve been in business with a good reputation. Their industry experience sets them apart from other providers. Their new website makes it easy to find your local office (assuming they have one in your area), read reviews, learn about their consultants, download a quick informational pamphlet, etc.
Moreover, they are also happy to answer questions over email. Their consultants are very well trained and able to talk you through every aspect of a reverse mortgage. For the mortgage application process, they will ask whether you are at least 62 years old and if the house mortgage is almost paid back if not fully. Moreover, talking about credit scores, you need to have at least a 620 credit score to get verified.
Pros
- The online portal is very helpful
- Turnaround time is 45 days
- Free online resources
- The services are available in all states except New York, Hawaii, South Dakota, and Utah
Cons
- Strict eligibility criteria
Also Read – Compare
3. Reverse Mortgage Funding
Founded in 2012, Reverse Mortgage Funding is a company that is solely dedicated to providing reverse mortgages to seniors, making it the best rated reverse mortgage company in this segment. Most importantly, this company has flexible eligibility requirements that will not cause much of a problem in qualifying for the loans. Whereas when compared to most other reverse mortgage companies, they require you to be at least 62 years old to get the loans, at Reverse Mortgage Funding, you just need to be 60 years old to qualify.
Moreover, you can be eligible for the loan even if you have non-FHA-condos. Another great thing about Reverse Mortgage Funding is their Equity Elite ZERO program which can get rid of all closing costs, providing lower interest rates. Also, with no annual PMI, it becomes one of the cheapest options for you. To qualify for this mortgage, you at least need to pay 50% of your house mortgage, if not more.
Pros
- It provides competitive interest rates and fees
- It gives $1,000 gift cards to those for whom it cannot provide competitive rates
- You can qualify for the loan at the age of 60
Cons
- Loans are limited
- The Equity Elite plan is not insured by the FHA
Don’t Miss – Best Mortgage Lenders For First Time Buyers
4. Longbridge Financial
Headquartered in Alexandria, Virginia, Longbridge Financial is one of the most highly regarded reverse mortgage companies on our list for several reasons. First and foremost is their customer service: out of all eight companies we reviewed, Longbridge Financial performed by far and away had the highest satisfaction rating according to its customers (92%).
They also ranked well on pricing: it came in at 4th out of 8 for most expensive rates compared with other companies. While their services are excellent, you might want to consider some of your other options if cost is an issue. Longbridge will charge you a whopping average APR of 17% – well above what most other lenders charge (15%). If you qualify for a lower APR, great; otherwise, you might have better luck with another lender.
If you’re trying to decide whether or not a reverse mortgage is right for you, there are many factors to consider. But if your main priority is customer service and someone willing to go above and beyond to help you understand your options with long-term financing, Longbridge Financial might be a good fit.
Pros
- No limits on the withdrawals in the first year
- Minimum costs and no added fees
- Free-of-cost protection from identity theft
Cons
- No regional branches
Trending – 5 Best Home Equity Loan For Bad Credit [APR + Comparison]
5. Finance of America Reverse
If you’re looking for a company with good experience in reverse mortgages, consider Finance of America. Since its inception in 2003, this financial services giant has been steadily moving up in national rankings and this is why it is ranked as one of the best reverse mortgage companies across the state.
Finance of America is a solid company with many benefits and advantages over its competitors. Their low upfront costs and easier application process make them a good choice for reverse mortgage borrowers. Finance of America has among the lowest up-front costs, ranging from 0.00% to 2.00%. This enables borrowers to apply more assets toward closing costs, resulting in lower loan balances. Moreover, while most lenders require an in-person consultation with an advisor, Finance of America allows borrowers to initiate contact online without an appointment, saving you time and money.
It has held on to a spot within the top five mortgage companies each year since 2010. However, there are some cons to Finance of America. For instance, if you like smaller banks or face-to-face interactions, you might want to skip this company, although they do offer most of their services online or by phone.
Pros
- Competitive interest rates
- Can provide loans up to $4 million
- Turnaround time varies from 30 to 45 days
Cons
- Provides property loans only in 26 states
Editor’s Pick – Property Tax vs Tax Assessment [Explained] in 2023
6. All Reverse Mortgage, Inc. (ARLO)
All Reverse Mortgage, Inc. was founded with a mission to help seniors keep their homes and finances as healthy as possible. With 17 years of experience in this market, All Reverse Mortgage has become one of America’s most trusted reverse mortgage companies by providing exceptional customer service to every borrower they serve.
Their commitment to customer satisfaction is reflected in several accolades—including three consecutive years of Best Company for Seniors awards from AARP Magazine. Each year, thousands of seniors lean on All Reverse Mortgage to look at their finances and determine if a reverse mortgage is right for them. The company has earned an A+ rating with the Better Business Bureau for its outstanding customer service track record.
All Reverse Mortgage, Inc. (ARLO) offers are completely flexible and customizable to fit your unique needs and requirements. For example, if you’re a homeowner but don’t plan on living in your house for much longer, then ARLO can tailor an offer that fits your situation.
However, it should be noted that you’ll need to find a new place to live once you complete payments with ARLO; they aren’t designed as short-term solutions. It would help if you also considered that there might be costs or fees attached to these loans, so understand all of those details before proceeding.
Pros
- Customized mortgage plans
- Good customer service
- Reputed and trustworthy
Cons
- Added fees and extra costs
Conclusion
Now that we have covered the 6 best reverse mortgage companies in the market that offers seniors good home property loans, let us be clear about one important point. Rather than objectively researching the best company, you should first understand what are your needs. Initially, judging the location of your home would help your narrow down your options. Moreover, checking for the turnaround time and flexible terms and conditions are what you should go for.
Finally, you should focus on any extra costs or fees that the loan might have. Now, this whole process can be overwhelming for some and that is why Mount Shine is here to help you make an informed choice. Contact our industry experts to get detailed information and guidance regarding the best reverse mortgage companies.
