10 Best Reverse Mortgage Companies for Seniors

Reverse mortgages can be both a lifeline and a long-term liability — depending on who you trust to service it. While marketing often promises “no monthly payments,” the real differentiator isn’t the loan itself, but the lender’s ethics, servicing model, and transparency.

Key Takeaways: Quick Answers for Seniors

❓ Question	💡 Expert Answer
Is there a “new” federal reverse mortgage rule?	No — only an evolving FHA framework with updated limits and counseling safeguards.
What is the safest reverse mortgage type?	HECMs, federally insured by HUD with non-recourse protection.
What’s the key lender red flag?	High BBB score but low consumer ratings — it signals compliance but poor service.
Which lender waives long-term fees?	Longbridge Financial – the only major lender with $0 monthly servicing fees.
Should I pick fixed or adjustable?	Adjustable (line of credit) options allow flexibility — unused credit grows over time.
Who should I avoid?	Any company with frequent servicing transfers or CFPB enforcement actions.
Is proprietary better for high-value homes?	Yes, but only when terms include non-recourse clauses and independent legal review.
Do all require counseling?	HECMs do — federal law mandates HUD-approved counseling before application.
How to compare lenders fast?	Focus on 3 metrics: Net proceeds, Servicing fees, and Customer satisfaction %.
Can I lose my home?	Only if you fail to pay taxes, insurance, or upkeep — not for age or income.

1. Why Service Quality Matters More Than the Interest Rate

A reverse mortgage may last 15–25 years, outliving most traditional loan cycles. The servicer’s stability — not the advertised APR — determines your peace of mind.

🔍 Factor	💬 What It Means	🧠 Expert Tip
Servicing Retention	Whether the lender manages your loan long-term	Choose lenders that keep servicing in-house
Monthly Servicing Fee	Fee added monthly to your balance	Waived by Longbridge Financial = thousands saved
Regulatory Record	CFPB/FTC complaints history	Avoid lenders with servicing violations (e.g., NOVAD precedent)
Accessibility	Online portals, mobile app	Look for 24/7 visibility of loan balance and disbursements

💡 Pro Tip: Choose transparency over scale — the largest lenders often outsource servicing, which increases risk of miscommunication, lost paperwork, or wrongful foreclosure.

2. Top 10 Reverse Mortgage Companies for Seniors

🏦 Lender	⭐ Best For	💵 Avg. HECM Rate	🌍 Availability	💰 Servicing Fee	🧭 Key Advantage
1️⃣ Longbridge Financial	Best Overall / Customer Experience	6.16%	50 States	$0 (Waived)	Highest satisfaction, FHA & Jumbo options
2️⃣ Guild Mortgage	Best for Low Rates	6.12%	49 States	$30	Consistently lowest APRs nationwide
3️⃣ Fairway Independent Mortgage	Best for Home Purchase (H4P)	6.35%	50 States	$35	E-closings & specialized H4P expertise
4️⃣ Finance of America Reverse (FAR)	Largest Volume Lender	6.25%	All States	$30	Proprietary “HomeSafe” up to $4M
5️⃣ South River Mortgage	Best for Refinancers	6.25%	28 States	$30	HECM refinance specialists
6️⃣ Mutual of Omaha Reverse	Best Brand Recognition	6.28%	Most States	$35	Trusted name, broad FHA access
7️⃣ HighTechLending Inc.	Best Boutique Service	6.40%	Limited States	$30	99% satisfaction rating
8️⃣ Goodlife Home Loans	Most Transparent Fees	6.37%	45 States	$30	Simple terms, senior-friendly process
9️⃣ Northwest Reverse Mortgage	Best for Comparison Access	6.29%	28 States	Varies	Brokerage access to multiple lenders
🔟 All Reverse Mortgage	Lowest Regional Rates (13 States)	6.10%	13 States	$30	Ultra-low fixed rates, limited geography

3. Behind the Numbers: What Consumer Ratings Reveal

Big names often get A+ from the BBB, but borrower experiences tell a different story.

🧾 Lender	🧠 Consumer Rating (0–5)	💬 Positive Review %	🧩 Complaint Volume	📉 Observed Issue
Longbridge Financial	3.87/5	77%	32	Clear communication, top service
Finance of America Reverse (FAR)	1.00/5	20%	37	Poor post-closing communication
Mutual of Omaha Reverse	1.53/5	31%	62	Long response times
HighTechLending	4.94/5	99%	1	Exemplary personalized service
Goodlife Home Loans	4.80/5	96%	2	High transparency
Guild Mortgage	3.50/5	70%	24	Low rate, moderate service speed

🧭 Expert Insight:
A+ ratings confirm complaint resolution, not customer happiness. If thousands of seniors give 1-star reviews, that’s not a coincidence — it’s a pattern.

4. The “Hidden Cost” Lenders Don’t Advertise — Servicing Compounding

⏳ Duration	💸 $30/Month Fee Compounded	💔 Lost Equity
10 Years	~$4,800	Erodes 1–2% of home value
15 Years	~$8,100	Nearly a full year of property tax payments
20 Years	~$13,200	Substantial inheritance loss

💡 Longbridge’s $0 fee policy saves seniors $10K+ over 20 years — a silent but decisive financial differentiator.

5. FHA vs. Jumbo: Which Reverse Mortgage Type Fits You Best?

🏠 Criteria	🪙 FHA-Insured HECM	💎 Proprietary (Jumbo)
Age Eligibility	62+	55+ (varies by lender)
Loan Cap (2025)	$1,209,750	$4–5 million
Federal Insurance	✅ Non-recourse guarantee	❌ Depends on lender contract
Counseling Required	✅ HUD-approved mandatory	⚠️ Optional (seek independent advice)
Best For	Typical retirees	High-value home or early-access equity
Example Lenders	Longbridge, Guild, Fairway	FAR, Longbridge Platinum, Goodlife Jumbo

6. How to Spot a Safe Reverse Mortgage Lender

🧭 Evaluation Metric	✅ What to Look For	🚫 What to Avoid
Servicing Policy	Retained, in-house, transparent	Transferred to third-party servicer
Fee Disclosure	All costs listed pre-application	Hidden “servicing” or “disbursement” fees
Regulatory Record	No CFPB enforcement	Past or ongoing CFPB actions
Counseling Support	Proactive, HUD-linked referrals	Pushy, “pre-counseled” claims
Customer Portal	Real-time loan status	Paper-only communications
BBB vs. Consumer Rating	≥3.5 stars + low complaint volume	A+ with <2 stars from customers

💬 Expert Tip: Before signing, call the lender’s servicing line directly — if you wait more than 3 minutes on hold, imagine that multiplied over 15 years.

7. Seniors’ FAQ: Straight Answers to Uncomfortable Questions

❓ Question	💬 Expert Answer
“What happens if I outlive my reverse mortgage?”	You never lose ownership — the loan only becomes due when you sell, move, or pass away.
“Can my heirs keep the house?”	Yes. They can pay 95% of its appraised value to retain it — even if the loan balance is higher.
“Will I owe taxes on the funds?”	No. Proceeds are loan advances, not taxable income.
“Can I refinance my HECM later?”	Absolutely — refinancing with lenders like South River can increase available funds.
“Are reverse mortgage ads misleading?”	Many are. Verify claims via CFPB or HUD complaint databases before applying.
“How long does the process take?”	Typically 30–45 days, including mandatory HUD counseling.

8. Red Flags to Avoid Before Signing

🚫 Red Flag	🧠 Why It Matters	💡 Safer Alternative
“No Counseling Needed” Claims	Illegal under HECM rules	Require HUD counseling certificate
Aggressive “Act Now” Ads	Pressure sales = poor ethics	Demand written loan summary
“We Partner With the Government”	Misleading advertising	Verify lender via HUD Lender List
“We Guarantee the Highest Payout”	Often excludes hidden costs	Compare Net Proceeds, not gross loan amount
Unfamiliar Servicer Name Post-Closing	Indicates servicing sale	Choose servicing-retained lenders

9. Practical Checklist Before Choosing a Reverse Mortgage Company

🧩 Step	✅ Action	⏱️ Time Required
1	Obtain HUD counseling (certificate required)	1 hour
2	Request itemized cost estimate (Loan Estimate Form)	30 minutes
3	Verify servicing retention policy	10 minutes
4	Compare net proceeds after all fees	20 minutes
5	Read 3–5 verified customer reviews	15 minutes
6	Consult an independent fiduciary or CPA	1 session

💡 Rule of Thumb: Never choose based on one phone call. Get at least three written quotes, compare net disbursement after costs, and ask directly about fee waivers.

10. Expert-Recommended Pairings Based on Borrower Profile

👤 Borrower Type	🧭 Best Lender Match	💡 Why
Traditional Retiree (62+, <$1.2M Home)	Longbridge Financial (HECM)	Low cost + top service
Rate Shopper	Guild Mortgage / All Reverse Mortgage	Lower interest = more cash
Early Retiree (55+, High-Value Home)	Longbridge Platinum / FAR HomeSafe	Jumbo flexibility
Refinancer	South River Mortgage	Re-optimizes existing HECMs
New Home Buyer (H4P)	Fairway Independent Mortgage	Simplified purchase setup
Privacy-Focused Senior	HighTechLending / Goodlife	Boutique, low-pressure service

FAQs

Can my spouse under 62 stay in the home if I’m the only borrower?

Yes—if it’s a HECM and they’re recorded as an “Eligible Non-Borrowing Spouse (NBS)” at closing. That status preserves the right to remain in the property after the borrower dies or permanently leaves, but the line of credit and monthly payments stop and no new draws are allowed. All loan obligations (taxes, insurance, occupancy, maintenance) must still be met.

🧩 Scenario	🛡️ What’s Protected	🚫 What Stops	✅ To Do
Borrower dies or moves	NBS can remain in home	No further advances	Keep taxes/insurance current, certify occupancy annually
Borrower + NBS both leave	No protection	N/A	Plan sale or payoff with heirs

Will I lose the house if home values fall below my loan balance?

With a HECM, no. It’s non-recourse: neither you nor heirs owe more than 95% of current appraised value or the loan balance—whichever is less—at maturity. Proprietary (jumbo) loans may mirror this, but it’s contract-based, so read the non-recourse clause carefully.

📉 Home Value vs. Balance	🧠 Outcome	🙂 Heir Options
Value < Balance (HECM)	FHA insurance absorbs shortfall	Buy at 95% of value, or deed-in-lieu, or walk away
Value > Balance	Equity remains for heirs	Sell and keep surplus

What actually triggers “due and payable” on a reverse mortgage?

It isn’t age—it’s eligibility failures or maturity events. The most common avoidable triggers: property taxes, insurance lapses, or occupancy missteps.

⚠️ Trigger	🧭 How It’s Defined	🧰 Prevention
Taxes/insurance unpaid	Delinquency beyond cure period	Escrow via LESA or auto-pay
Occupancy	Not living there as primary residence	Return occupancy certs promptly; travel <6 consecutive months
Property condition	Significant deferred repairs	Do required repairs before/after closing as agreed
Title changes	Unauthorized transfer	Notify servicer; use approved estate planning tools

I’ve heard of a “LESA.” Should I accept one?

A Life Expectancy Set-Aside (LESA) is a reserve funded from proceeds to pay taxes and insurance for your estimated remaining years. A fully funded LESA dramatically reduces default risk for those on fixed incomes.

🧮 LESA Type	🧾 What It Covers	🎯 Best For	🤔 Tradeoff
Fully funded	All future taxes/insurance	Predictable budgets	Reduces immediate cash
Partially funded	Some T&I, borrower pays rest	Variable budgets	Requires careful cashflow

What if my servicer sells my loan after closing?

Servicing transfers are common—but communication gaps cause problems. You’ll receive a goodbye and hello letter. Keep both. Create a single file with tax bills, insurance declarations, occupancy forms, and payoff quotes. If you suspect errors, write (not call) a Qualified Written Request (QWR) to the new servicer and keep proof.

📬 Event	✅ Your Move	🧠 Why It Matters
Transfer notice	Save both letters	Confirms where to send taxes/claims
First statement	Set up portal + auto-pay	Avoids T&I lapses
Dispute	Send QWR by certified mail	Preserves rights & timelines

Can I make voluntary payments on a reverse mortgage to control the balance?

Yes. Despite “no required payment,” you can prepay any amount, anytime, without penalty on HECMs. Smart strategy: target interest + MIP + servicing periodically to keep balance flat while retaining access to your line of credit.

🧰 Tactic	💡 Purpose	💵 When Useful
Quarterly interest/MIP prepay	Slow compounding	Large LOC you don’t need now
Lump-sum curtailment	Restore equity	Preparing for sale/refi
Annual catch-up	Budget-friendly control	Fixed-income households

Is a fixed rate safer than an adjustable HECM?

Not necessarily. Fixed HECMs require lump-sum draws and eliminate the growing line of credit. Adjustable HECMs enable tenure/term payments or a line of credit that grows at the note rate + MIP—a unique hedge against longevity and inflation.

⚖️ Option	✅ Strength	⚠️ Tradeoff	🧠 Best Fit
Fixed	Predictable rate, lump sum	No LOC growth; less flexibility	Immediate, one-time need (payoff big mortgage)
Adjustable (LOC/tenure)	LOC growth, flexible draws	Rate can change	Long horizon, cashflow planning

Can I use a reverse mortgage to buy my next home (H4P)?

Yes, HECM for Purchase (H4P) lets you buy and never have monthly principal/interest payments. You’ll need a large down payment (often 45–65% depending on age/rates), and the property must meet FHA standards.

🏠 Step	✅ Requirement	🙂 Tip
Down payment	From sale proceeds/cash (no borrowed funds)	Season funds; document source
Property	Primary residence, FHA-eligible	Pre-clear condo status early
Timing	Counseling before contract close	Align counseling + appraisal to avoid delays

Are condos, co-ops, or manufactured homes eligible?

Condos: HECM requires FHA-approved project or single-unit spot approval with strict criteria.
Co-ops: Generally not HECM-eligible; some proprietary loans may consider case-by-case.
Manufactured homes: Possible if they meet HUD code, permanent foundation, title elimination, and age/condition standards.

🏢 Property Type	🔎 Key Hurdle	🧭 Workaround
Condo (non-approved)	HOA docs, budget reserves	Pursue spot approval early
Co-op	Ownership structure	Explore proprietary terms
Manufactured	Foundation/title issues	Engineer cert + title purge

What happens if I need major repairs before closing?

Underwriters may require a Repair Rider with escrows or completion prior to funding. Prioritize health/safety items (roof, electrical, plumbing) to avoid funding holdbacks and occupancy delays.

🔧 Defect Type	🛠️ Typical Requirement	🗓️ Timing
Roof leaks	Repair before closing or escrow	Pre-order contractor bids
Electrical hazards	Licensed fixes + re-inspection	Build in time for permits
Trip hazards/rails	Minor cure or post-close escrow	Photo verification accepted sometimes

Could a reverse mortgage affect Medicaid or other benefits?

HECM proceeds aren’t income, but unspent cash can become a countable asset for means-tested programs (Medicaid/SSI). Use structured draws (tenure/term) rather than large lump sums if benefits are in play; consult an elder-law attorney.

🧮 Benefit	💬 Effect of HECM	✅ Safer Draw Pattern
Medicaid/SSI	Asset limits apply to balances	Small, regular draws; keep cash under thresholds
Social Security/Medicare	No impact	N/A

How do heirs actually settle the loan—step by step?

They notify the servicer, order an FHA appraisal, and choose to sell, refinance, or deed-in-lieu. They typically get 6 months, with possible two 3-month extensions if progress is shown.

🧾 Heir Path	🪜 Steps	🕰️ Timeline
Keep the home	Refinance at 95% of value	Within 6–12 months
Sell the home	List, accept offer, pay off	Similar window
Walk away	Deed-in-lieu if underwater	Coordinate with servicer

What should my Power of Attorney (POA) say for reverse mortgage planning?

Use a durable, specific POA that explicitly authorizes mortgage origination, draws, repairs authorization, and payoff. Servicers scrutinize POAs—state-compliant language and notarization avoids delays.

📜 POA Clause	✅ Include	💡 Why
Real property transactions	Yes	Approve origination/refi
Debt instruments	Yes	Authorize draws/payoffs
Repairs/insurance	Yes	Maintain eligibility

How do I compare offers without getting lost in rate talk?

Ask every lender for a same-day, apples-to-apples summary of net proceeds under three distribution options (lump sum, tenure, LOC), including itemized MIP, origination, third-party costs, and servicing.

📋 Comparison Box	🎯 What To See	🚫 Ignore
Net proceeds	Cash after all fees & payoffs	Headline rate without context
Servicing policy	Retained vs. transferred; monthly fee	“We’re A+ BBB!” without reviews
LOC growth terms	Index, margin, MIP	Vague “highest cash” claims

What if I get a scary “occupancy” letter while I’m caregiving away from home?

Respond in writing immediately. Provide proof of primary residence (ID, utility bill, voter registration) and a temporary-absence letter explaining caregiving dates. If needed, ask for a reasonable-cause extension.

📨 Notice Type	🧠 Response Packet	🧯 De-escalation
Occupancy certification	ID + recent bill + letter	Send certified mail, keep copies
Due-and-payable threat	Add POA/attorney letter	Request pause while curing issue

Can I refinance a HECM to improve terms or access more cash?

Yes—HECM-to-HECM refis are common when rates, principal limit factors, or home values improve. Confirm a tangible net benefit: more LOC, lower margin, or reduced costs. Avoid “serial refis” that reset fees without value.

🔁 Refi Trigger	🧮 Benefit Test	🧠 Rule
Lower margin	Higher principal limit	Must exceed new fees
Higher value	More available LOC	Verify with updated appraisal
New goals	Switch to tenure/term	Align with budget plan

Are proprietary (jumbo) reverse mortgages ever the better choice?

For high-value homes or ages 55–61, yes. But protections are contractual, not federal. Insist on written non-recourse language, clear servicing policies, and fee caps. Consider independent legal review before signing.

💎 When Jumbo Wins	🛡️ What to Insist On	🔍 Document to Read Twice
Value above HECM cap	Non-recourse clause	Loan agreement, servicing addendum
Age <62 (state-permitting)	Counseling (even if optional)	Marketing vs. contract consistency
Condo/unique property	Defined draw & rate mechanics	Prepayment terms, resets

How do I bulletproof my file before closing? (Faster, fewer surprises)

Create a single binder (paper + digital) with: counseling certificate, ID, deed, recent tax bill, insurance dec page, HOA statement (if condo), repair bids, and beneficiary/POA documents.

📁 Section	📎 Contents	😊 Outcome
Property	Deed, tax bill, insurance	Smooth underwriting
Counseling	HUD certificate	Compliance checked
Budget	LESA/escrow decision notes	Default prevention
Estate	Will/POA/trust	Heir process simplified

If my taxes/insurance fell behind, can I cure and reinstate?

Often yes. Contact the servicer quickly to pay arrears or set up LESA if eligible. Request in writing that “due and payable” be rescinded upon cure and ask for fee waivers where hardship is documented.

🧯 Default Type	🛠️ Cure Path	📝 Ask For
Tax delinquency	Pay + receipt to servicer	Administrative fee waiver
Insurance lapse	Bind new policy + binder	Reinstatement letter
Both	LESA evaluation	Written confirmation of cure

How do state property-tax relief programs interact with a HECM?

State senior exemptions, deferrals, and circuit-breaker credits can coexist with a HECM, but the servicer still requires proof that taxes are paid or formally deferred each cycle. A deferral is not delinquency if the jurisdiction records it correctly. Always file renewals on time and upload receipts to your portal.

🧾 Program Type	🧠 HECM Impact	✅ What You Do	🙂 Tip
Exemption/Credit	Lowers annual tax due	Submit award letter each year	Calendar a renewal reminder
Deferral	Acceptable if recorded	Upload deferral approval & lien notice	Ask servicer how they want proof
Installment Plan	Must remain current	Auto-pay from checking or LESA	Avoid late fees that trigger reviews

Can an active bankruptcy stop me from getting or keeping a reverse mortgage?

Origination: Chapter 7 must be discharged; Chapter 13 typically needs court/trustee approval. After closing: Bankruptcy doesn’t auto-mature the loan, but you must keep taxes, insurance, and occupancy current. Always tell your attorney about the HECM so the plan protects housing obligations.

⚖️ Status	🔎 Lender View	🧭 Action
Ch. 7 Discharged	Often eligible	Provide discharge + credit re-established
Ch. 13 Active	Case-by-case	Obtain court OK + payment history
New Filing Post-HECM	Loan continues	Keep T&I current; notify servicer & counsel

Divorce in progress—how do title and proceeds work without derailing the loan?

A HECM requires clear title and documented intent to occupy by all borrowers. If divorcing, use a marital settlement agreement (MSA) or court order that states who stays, who borrows, and how proceeds are split. Servicers scrutinize occupancy—avoid informal deals.

💍 Issue	📄 Needed Evidence	🧠 Why It Matters
One spouse remains	Deed + MSA allotting residence	Confirms primary residence
Both over 62	Co-borrow to protect both	Avoids NBS complexity
Buyout at close	Payoff demand + wire instructions	Prevents post-close disputes

What if a disaster damages my home—does insurance money affect the HECM?

Insurance claim checks may be co-payable to you and the servicer. Funds are released in draws tied to inspections to ensure repairs restore collateral. Keep detailed invoices and photos; request expedited inspections for safety issues.

🌪️ Event	💵 Claim Flow	🔧 Release Condition	🙂 Shortcut
Wind/Flood/Fire	Jointly payable check	Stage-based inspections	Pre-select licensed contractor
Minor damage	Small disbursement	Photos & receipts	Ask for desk review to avoid site visit
Total loss	Complex review	Rebuild or payoff path	Talk to loss-draft team early

How fast does a HECM line of credit (LOC) actually grow?

The unused LOC grows at note rate + annual MIP (credited monthly). That guaranteed growth is independent of home value—unique to HECMs. It’s why many planners favor adjustable products for longevity risk.

📈 Variable	🔍 What It Means	🧮 Practical Implication
Index + Margin	Your adjustable rate	Higher rate = faster LOC growth but higher cost if you draw
MIP Add-On	Added to growth formula	Growth tracks total accrual rate
Unused LOC	Compound base	Early restraint → larger future access

Rate anatomy: index, margin, lifetime cap—what should I negotiate?

Focus on margin (lender-set) and lifetime cap. Indexes float with the market, but the margin sticks for life and directly affects both accrual cost and LOC growth. A tighter lifetime cap reduces extreme-rate scenarios.

🧩 Part	📌 Control	🎯 Goal
Index (e.g., CMT/SOFR)	Market-driven	Understand, don’t chase
Margin	Negotiable	Lower is better
Periodic/ Lifetime Caps	Negotiable range	Limit worst-case rates

How do I leverage the “next-birthday” rule to increase proceeds?

If closing occurs within 6 months of your next birthday, lenders may use the higher age for the principal limit factor. A one-month delay can add thousands in proceeds—ask for side-by-side estimates.

🎂 Timing Window	🧠 Advantage	🗓️ Tactic
< 6 months to birthday	Higher age factor	Schedule counseling now, close just after eligibility date
> 6 months	No effect	Optimize rate/fees instead

Do proprietary (jumbo) loans protect a non-borrowing spouse like HECMs?

Protections are contractual, not federal. Some jumbo programs mimic NBS occupancy rights; others do not. Demand written survivorship/occupancy language, and have an elder-law attorney review it before committing.

💎 Topic	✅ Require in Writing	🚫 Avoid
NBS occupancy rights	Post-maturity residency allowance	Vague “case-by-case” promises
Non-recourse	Liability limited to home	Full-recourse or silence
Servicing continuity	Named servicer + transfer conditions	Open-ended transfer rights

Condo approvals: will my HOA’s finances kill the deal?

Underwriters review budget adequacy, reserves, insurance, owner-occupancy, and litigation. Thin reserves or unresolved lawsuits often stall HECMs. Ask the HOA for a lender package before you order the appraisal.

🏢 Metric	🔎 Underwriter Focus	✅ Cure Path
Reserves	% of budget to reserves	Provide latest reserve study
Insurance	Master + fidelity	Update certificates
Litigation	Nature & scope	Counsel letter explaining risk
Owner-occupancy	Too many rentals	Provide updated roster

Moving to assisted living—can I keep the HECM while I transition?

A temporary absence under 12 months for medical reasons can preserve eligibility if the home remains your principal residence and obligations are met. Two borrowers? One occupant can maintain the test.

🧳 Situation	🧠 Eligibility	✅ Steps
Solo borrower, short rehab	Likely okay	Keep utilities/mail at home; respond to occupancy certs
One of two borrowers away	Still okay	Co-borrower continues occupancy
Indefinite move	Maturity risk	Discuss options with servicer early

Appraisal low—can I challenge the value used for proceeds?

Yes. Submit a Reconsideration of Value (ROV) with comparable sales that are closer, more recent, and similar in features. Be specific—square footage, condition, view, and lot adjustments must be evidence-based.

🧮 ROV Ingredient	📎 Evidence	🙂 Best Practice
Better comps	MLS sheets, photos	Within 0.5–1.0 mile, 3–6 months
Feature match	Renovation receipts	Emphasize like-for-like
Condition	Contractor reports	Avoid emotional language—stick to facts

Builder incentives with HECM for Purchase (H4P)—what’s allowed?

FHA allows certain seller concessions, but no inducements to borrow that distort the net purchase price. Credits must be on the Closing Disclosure. Illegal or undisclosed incentives can void the loan.

🧱 Incentive	✅ Generally Okay	🚫 Risky
Closing cost credits	Disclosed & capped	Off-book “side deals”
Upgrades	Priced into contract	Post-close reimbursements
Rate buydowns	If disclosed and compliant	Tied “must use” third parties

Broker vs. direct lender—who gives the safer experience?

Brokers shop multiple investors and can win on margin; direct lenders control underwriting and often servicing (if retained). Choose based on servicing plan, fee transparency, and net proceeds, not the logo on the business card.

🧭 Channel	💪 Strength	⚠️ Watch
Broker	More product access	Who services the loan later?
Direct lender	Process control	Only one rate sheet

How do I avoid reverse-mortgage impostor scams?

Scammers mimic servicers and demand “occupancy fees,” “insurance audits,” or wire instructions. Never click unknown links or wire funds from email alone. Call the published servicer number to verify any request.

🕵️ Scam Type	🚫 Red Flag	✅ Safe Move
Phishing email/text	Urgent payment link	Call servicer on statement number
Deed/Transfer scam	Quitclaim docs by email	Attorney review before signing
“Government partner” ad	Claims affiliation	Verify via HUD lender list

Right of rescission—do I get one with every reverse mortgage?

HECMs have a 3-day rescission after signing except HECM for Purchase (H4P), which has no rescission (purchase loans fund at closing). Plan decisions accordingly.

📜 Loan Type	🔄 Rescission?	🗓️ Window
HECM (refi/standard)	Yes	Midnight of 3rd business day
H4P (purchase)	No	Final at closing

What’s the cleanest payoff strategy when selling the home?

Request a written payoff quote good through your projected closing date; confirm per diem interest, recording fees, and any recoverable corporate advances. Your settlement agent will wire funds and request the release of lien.

🏁 Step	✅ Action	🙂 Tip
1	Order payoff 2–3 weeks ahead	Include sale date & contact
2	Review fees line-by-line	Ask about “corporate advances”
3	Confirm lien release timeline	Track recording to avoid delays

If heirs need more time, how do extensions actually work?

After maturity, the servicer typically allows 6 months, with up to two additional 3-month extensions for good cause. Show listing agreements, loan approvals, or contractor timelines to justify more time.

⏳ Extension Type	📎 Proof That Wins	🧭 Use Case
First 3-month	Active listing + showings	Market time
Second 3-month	Pending sale or refi approval	Closing pipeline
Hardship	Medical/estate delays	Document thoroughly

Can I lock in a reverse mortgage rate like a forward mortgage?

Yes, but HECM rate locks are shorter and more conditional. Closing delays (counseling timing, condo docs, repairs) can push you outside the lock. Control the paperwork critical path to protect pricing.

🔒 Lock Risk	🧠 Prevention	✅ Owner Task
Counseling date slips	Book early	Get certificate upfront
Appraisal backlog	Order quickly	Prep home access & comps
Repair conditions	Cure fast	Pre-bid and schedule contractors

What does an “Aging-in-Place” budget look like around a HECM?

Pair tenure payments or LOC draws with a LESA and earmark home-mod funds (grab bars, lighting, ramps). The goal is to prevent T&I defaults and reduce fall risk simultaneously.

🏠 Budget Line	💡 Amount	🎯 Purpose
Taxes & Insurance (LESA)	Set-aside funded	Default shield
Modifications	$1,500–$5,000	Safety + independence
Emergency reserve	1–2 months expenses	Unexpected gaps
Routine maintenance	1% of home value/yr	Preserve collateral

Government & Housing Assistance