A reverse mortgage lets you turn part of your home’s value into cash without making a monthly mortgage payment. The loan grows instead of shrinking, and it’s repaid when you sell, move out for good or die. For the right household, that can mean staying in a paid-off home with breathing room in the budget. For the wrong one, it can mean a foreclosure notice over unpaid property taxes, a spouse who has to leave the house, or heirs who inherit a debt instead of an asset.
This guide starts where most “best lender” lists stop. It names ten lenders worth getting quotes from, based on public federal endorsement data and the products each one actually sells. Then it covers what the loan costs, how much someone your age can expect, the “95% rule” heirs keep asking about, the situations where a reverse mortgage tends to go wrong, and a calculator that runs HUD’s own borrowing factors on your numbers.
Nine Straight Answers Before You Talk to a Lender
These are the questions retirees and their adult children search for most. Each gets a short answer here and a full one further down.
At today’s expected rates of about 6% to 7%, HUD’s factors give a 70-year-old roughly 37% to 41.5% of the home’s value, up to $1,249,125, before costs. On a $400,000 home, that’s about $148,000 to $166,000, or roughly $130,000 to $148,000 after typical upfront costs.
The debt grows every month while your equity shrinks, and the loan can still be called due if you fall behind on property taxes, homeowners insurance or upkeep. Upfront costs are also high compared with a regular home equity loan.
If your heirs want to keep the house after you die, they repay the loan balance or 95% of the home’s appraised value, whichever is less. If the debt is bigger than the house is worth, FHA insurance covers the difference.
The FHA-insured HECM, which most people get; proprietary (private, or “jumbo”) loans for higher-value homes and sometimes for borrowers from 55; and single-purpose loans from some state or local agencies and nonprofits for one need, such as property taxes or repairs.
There’s no single winner. Finance of America, Mutual of Omaha and Longbridge closed about 62% of HECMs in August. Smaller lenders sometimes quote lower rates or fees. The best lender is the one that gives you the best written terms for your situation.
Yes, if you stop paying property taxes, insurance or HOA dues, let the home fall into serious disrepair, or are away from it for more than 12 consecutive months. You don’t lose it for living a long time.
Generally no. Loan proceeds aren’t income. Money you hold onto can count as a resource for means-tested programs such as SSI and Medicaid, so time your draws with care if you receive those.
For HECMs with case numbers from August 4, 2014 onward, an “eligible non-borrowing spouse” who meets HUD’s rules can usually keep living in the home. Other relatives have no such protection.
Yes, for a HECM. HUD requires a session with an approved counselor before you apply. Fees typically run about $125 to $250, and some agencies reduce or waive them.
The 10 Reverse Mortgage Lenders Worth Getting Quotes From
“Best” lists are often built from affiliate payouts. We built this one from public numbers instead: HECM endorsement counts reported from FHA data for August and September, the products each lender lists, and independent reviews of their pricing. The order is roughly by HECM volume, then by what each lender is especially good for. Phone numbers come from each lender’s own site; licensing varies by state, so confirm a lender is licensed where you live.
The top HECM lender in September by monthly volume, and the company that bought AAG’s retail reverse mortgage business, so many former AAG customers now deal with it. Alongside the standard HECM it sells HomeSafe, a private loan or line of credit up to $4 million, and HomeSafe Second, which lets you tap equity while keeping an existing first mortgage. Its site lists a HomeSafe minimum age of 55 in many states (60 in Massachusetts, New York and Washington; 62 in North Carolina and Texas). An independent review of July data put its average HECM rate at 5.55%, the lowest among the large lenders it compared.
It led HECM volume on a rolling 12-month basis this fall. In April 2025 it launched SecureEquity, a private reverse mortgage up to $4 million for borrowers from age 55, starting in California and Florida; industry reporting says a recent change lets homes valued as low as $300,000 qualify. Two things to know: in February 2026 it settled, confidentially, a lawsuit from Longbridge over advertising websites, and in April 2025 Massachusetts fined it $65,000 over how ads were labeled on a review site, without any admission of wrongdoing. Neither involved loan terms, but it’s worth knowing when a “review” page steers you to a lender.
The third-largest HECM lender, licensed broadly, with a private Longbridge Platinum loan for higher-value homes and some borrowers aged 55 to 61, depending on the state. Its Platinum Preserve option, as described in an independent review, lets you set aside 10% to 40% of your equity so it can’t be borrowed against, which appeals to people who want something left for heirs. It also offers a HELOC designed for seniors. July’s reported average HECM rate: 5.91%.
A large traditional mortgage company that also does reverse loans, including HECM for Purchase and HECM refinances, with a private jumbo option. An independent review listed it in 49 states (not New York) and reported a July average HECM rate of 5.86%. A good fit if you’d like a local loan officer you can meet in person.
Consistently among the top HECM lenders, with HECM for Purchase, a second-lien line of credit and private jumbo loans, plus electronic closings. Reviewers point to it for retirees downsizing or moving closer to family who want to buy the next home without a monthly mortgage payment. July’s reported average HECM rate: 6.19%, higher than the others here, so compare.
A reverse-focused lender cited in industry reporting as growing its private-loan business this year, with particular experience in HECM-to-HECM refinances. If your home has gained value since your first reverse mortgage, a refinance can raise your available credit, but only if the gain outweighs the new costs. Reported July average HECM rate: 5.93%. Licensed in fewer states than the national lenders.
Ranked fourth by HECM endorsements in August. Specialists like this one often move faster on complicated files, such as condos, non-borrowing spouses or homes needing repairs. Ask for its state licensing and private-loan options when you call.
An independent review scored it second overall but left it off its top picks only because it lends in about 13 states. If you live in one of them, it belongs on your quote list. Its leadership has been candid in industry press about how higher rates are pushing many applicants right to the edge of qualifying, which is useful honesty when you’re deciding.
A large forward-mortgage lender that more than doubled its HECM volume in September and jumped into the top ten after hiring a well-known reverse mortgage executive from Fairway. Newer reverse teams sometimes price aggressively to win business, so it’s a good candidate for a comparison quote.
A broker rather than a direct lender, so it can show you HECM and several private products from different wholesale lenders side by side. An independent review listed it in 28 states. A broker is useful if you don’t have time to call five lenders, but ask how it’s paid and get the lender’s own Loan Estimate.
| Lender | Best for | Private loan | Reported July HECM rate | Contact |
|---|---|---|---|---|
| Finance of America | Overall menu | HomeSafe to $4M, from 55* | 5.55% | (800) 820-1715 |
| Mutual of Omaha | Volume leader, 12 months | SecureEquity to $4M, from 55 | Not reported | mutualreverse.com |
| Longbridge | Keeping equity in reserve | Platinum, from 55* | 5.91% | 855-523-4326 |
| Guild | Local loan officers | Jumbo | 5.86% | guildmortgage.com |
| Fairway | HECM for Purchase | Jumbo, second lien | 6.19% | fairway.com |
| South River | HECM refinances | Jumbo | 5.93% | Check licensing |
| Goodlife | Complex files | Ask | Not reported | Check licensing |
| All Reverse Mortgage | Service, if in your state | Ask | Not reported | About 13 states |
| Movement | Competitive new quotes | Ask | Not reported | Check licensing |
| Northwest Reverse | Side-by-side options | Several lenders | Varies | About 28 states |
*Minimum age for private loans varies by state. Rates are averages for July reported by an independent review of lender data; your quote depends on the day, the product and your home. Always verify a lender’s license at nmlsconsumeraccess.org.
How to compare quotes without getting lost
Ask each lender for the same product, on the same day, for the same home value: for example, an adjustable-rate HECM line of credit. Then compare four numbers, not the advertised rate alone: the margin (the part of an adjustable rate the lender sets), the origination fee (capped at $6,000 on a HECM, but often negotiable or partly credited), lender credits toward closing costs, and the net principal limit, which is what you can actually draw. A lower margin raises the amount you can borrow and slows how fast the balance grows. A big credit sometimes comes with a higher margin, which costs more over a long loan.
The Three Types of Reverse Mortgages
Nearly everything in the news is about HECMs, but private loans are now the larger share of the market, and single-purpose loans are the cheapest of all if your need is narrow.
| Type | Who offers it | Minimum age | Home value counted | Best for |
|---|---|---|---|---|
| HECM (FHA-insured) | FHA-approved lenders | 62 | Up to $1,249,125 | Most homeowners; strongest protections |
| Proprietary (jumbo) | Private lenders | 55–62, by state | Up to about $4M loans | High-value homes, younger borrowers, some condos |
| Single-purpose | Some state/local agencies, nonprofits | Varies | Small amounts | One need: taxes, repairs; lowest cost |
A private reverse mortgage isn’t insured by FHA. The terms on heirs, non-borrowing spouses and the 95% rule are set by the lender’s contract, not HUD’s rules, so read them line by line or have an attorney do it. Ask specifically whether the loan is non-recourse (heirs never owe more than the home’s value), what happens to a spouse who isn’t on the loan, and whether the line of credit grows over time. Private loans often skip FHA’s 2% upfront insurance premium, which is why they can come out cheaper on homes worth well over the HECM limit.
How Much You Can Borrow at 62, 70, 80 and Beyond
Three numbers decide it: the age of the youngest borrower (or eligible non-borrowing spouse), the “expected interest rate,” and your home’s value up to the $1,249,125 limit. Higher ages and lower rates mean more money.
When we ran a typical case through HUD’s factor table, the numbers came out like this: a 70-year-old with a $400,000 home and no mortgage, at a 7% expected rate, has a principal limit of about $148,000. Take out the 2% upfront mortgage insurance ($8,000), a $6,000 origination fee and about $3,500 in third-party closing costs, and roughly $130,500 is left to use. At a 6% expected rate the same household would have about $148,500 after costs.
There’s a second limit people miss. On an adjustable-rate HECM, HUD’s handbook caps what you can take in the first 12 months at the greater of 60% of the principal limit or your required payoffs and costs plus 10%. In this example that’s about $71,300 of cash in year one, with the rest available after the first anniversary. On a fixed-rate HECM, the loan is a single lump sum at closing, subject to the same cap, and whatever you can’t take then is simply gone. That’s why most borrowers who want flexibility choose the adjustable line of credit.
Rates matter a lot right now. Industry reporting this fall tied a six-year low in monthly HECM endorsements partly to higher interest rates, which shrink the share of equity people can reach and have pushed some applicants who qualified months ago below the line.
Reverse Mortgage Calculator Using HUD’s Own Factors
This estimator interpolates HUD’s principal limit factors, applies the FHA limit, the 2% upfront insurance premium and the origination fee formula, then subtracts your mortgage payoff and third-party costs. It’s a planning tool, not a quote.
Factors are interpolated from HUD’s table for ages 62–90 and expected rates of 4–8%; outside that range the nearest value is used. Lenders calculate using exact factors, today’s expected rate and your appraisal. Not financial advice.
What a HECM Costs, Line by Line
Most costs are rolled into the loan, so you don’t write a check, but every dollar financed is a dollar you can’t use and one more dollar charged interest for years.
| Cost | Amount | When | Negotiable? |
|---|---|---|---|
| HUD counseling | About $125–$250 | Before applying | Some agencies reduce or waive |
| Appraisal | About $300–$900 | Before closing | No |
| Origination fee | Greater of $2,500 or 2% of first $200,000 + 1% above; max $6,000 | At closing | Yes |
| Upfront FHA insurance | 2% of home value, up to the limit | At closing | No |
| Annual FHA insurance | 0.5% of the balance a year | Monthly, added to balance | No |
| Title and other closing costs | Often about $1,500–$4,000 plus title insurance | At closing | Shop title where allowed |
| Servicing fee | Up to $30–$35 a month, if charged | Monthly | Many lenders don’t charge |
Fee rules from HUD; cost ranges from a large lender’s published fee guide. Your Loan Estimate is the document to compare.
Reverse Mortgage Pros and Cons, Honestly Weighed
The biggest disadvantage isn’t the fees. It’s that the loan quietly grows while you’re living your life, and your options shrink with it.
| Pros | Cons |
|---|---|
| No required monthly mortgage payment | Balance grows every month with interest and FHA insurance |
| Stay in your home and keep the title | Must keep paying taxes, insurance, HOA and upkeep, or face default |
| Unused HECM credit line grows over time | High upfront costs, often 3%–5% of home value |
| Non-recourse: you or heirs never owe more than the home is worth | Less to leave to heirs |
| Proceeds generally aren’t taxable income | Can affect SSI and Medicaid if cash is held |
| Protections for eligible non-borrowing spouses | Other relatives living with you have no right to stay |
On an adjustable-rate HECM, the unused portion of your line of credit grows at the same rate the loan balance would, the interest rate plus the 0.5% annual insurance. A line you set up at 65 and don’t touch can be noticeably larger at 75, regardless of what happens to home prices. Some retirement planners use this as a standby fund to draw from in years when investments are down. You only pay interest on what you actually draw.
Which Situation Sounds Like Yours?
Whether a reverse mortgage helps or hurts depends far more on your household than on the lender. These are the situations counselors hear about most.
This is the most important detail to get right. On a HECM with an FHA case number assigned on or after August 4, 2014, a spouse who qualifies as an “eligible non-borrowing spouse” can generally stay in the home after you die or move into long-term care, as long as it remains their principal residence and the loan’s other obligations are met. The younger spouse’s age also lowers how much you can borrow, because the factor uses the youngest person. Make sure your spouse is named correctly in the loan documents, and ask the counselor to walk you both through the rules.
This is the classic case where a HECM helps. The reverse mortgage must pay off the existing mortgage first, which is a “mandatory obligation,” and after that you have no monthly principal and interest payment. Use the calculator: if the payoff is larger than your net principal limit, you’d need to bring cash to closing or wait until you’re older or rates fall.
A HECM becomes due when the last borrower has been away from the home for more than 12 consecutive months for health reasons. If a move into care is likely within a few years, the high upfront costs may not be worth it, and the house may need to be sold soon anyway. Talk to an elder law attorney about how the loan interacts with Medicaid planning before you sign.
A reverse mortgage and a debt-free inheritance pull in opposite directions. If keeping the house in the family matters, consider drawing as little as possible, choosing a private product that lets you set aside part of your equity, or bringing your heirs into the conversation now. Under a HECM, they can keep the home by paying off the loan or 95% of the appraised value, whichever is less, often by refinancing in their own names.
HECMs start at 62, but private loans from Finance of America, Mutual of Omaha, Longbridge and others start at 55 in many states. Borrowing this early means smaller proceeds and many more years of compounding. Unless the need is pressing, a home equity line of credit or waiting until 62 is usually cheaper.
A HECM counts value only up to $1,249,125. Above that, private jumbo loans up to about $4 million often offer more cash and may skip FHA’s 2% upfront premium. Get both a HECM and a proprietary quote and compare net proceeds, rate, and the heir and spouse terms side by side.
HECM for Purchase lets you buy a new home with a large down payment, often roughly half the price or more depending on age and rate, and the reverse mortgage covers the rest with no monthly mortgage payment. It can let a retiree buy a single-story home near family without draining savings. Fairway and Longbridge are among the lenders that advertise it.
A condo must be in a HUD-approved project or meet FHA’s single-unit approval rules; manufactured homes must meet FHA standards, which generally rules out older units. Private loans sometimes accept condos that HECMs can’t. Ask the lender to check eligibility before you pay for an appraisal.
A reverse mortgage can pay off tax arrears at closing, but lenders also look at whether you can keep paying going forward. If your budget is tight, the lender may require a Life Expectancy Set-Aside, which reserves part of the loan to pay future taxes and insurance. That reduces your cash but protects you from the most common route to reverse mortgage foreclosure. Also ask your county about property tax deferral or senior exemptions, which can be cheaper than any loan.
Reverse mortgage advances generally aren’t treated as income, but money kept in your account past the month you receive it can count as a resource for means-tested benefits. Draw only what you need each month from a line of credit rather than taking a lump sum, and check with the benefits office or a counselor first.
Unlike an eligible spouse, other relatives have no right to stay after the last borrower dies or moves out. If someone depends on living in the house, plan for how they’ll repay the loan, through a refinance or the 95% rule, or for where they’ll go.
What Happens When the Loan Ends: Heirs and the 95% Rule
Most HECMs end with a sale after the last borrower dies or moves out. Knowing the order of events ahead of time takes a lot of stress out of a hard period for a family.
Here is the order of events. The servicer learns the last borrower has died or moved out and sends the estate a notice. Heirs are generally expected to respond within about 30 days and then have about six months to sell or pay off the loan, and servicers can grant extensions when a sale is actively under way. Confirm exact deadlines with the servicer in writing, and keep paying taxes and insurance while the house is on the market.
If the home is worth more than the loan, heirs sell, repay the lender and keep the rest. If the loan is bigger than the house is worth, which can happen after many years or a price drop, a HECM is non-recourse: neither the estate nor the heirs owe the difference, and heirs who want to keep the home can buy it for 95% of the appraised value. If nobody wants the house, the estate can hand it over with a deed in lieu of foreclosure.
Reverse Mortgage Nightmares, and How People Avoid Them
The horror stories behind the “reverse mortgage nightmare” search are real, but most trace back to a handful of avoidable mistakes.
| What goes wrong | Why it happens | How to prevent it |
|---|---|---|
| Foreclosure over taxes or insurance | Borrower stops paying property charges | Budget for them; ask for a set-aside if tight |
| Spouse forced to leave | Spouse left off the loan, or an older loan | Name an eligible spouse correctly |
| Money runs out early | Lump sum spent in a few years | Use a line of credit or monthly payments |
| Heirs surprised by the balance | Nobody told them about the loan | Share documents and servicer contact |
| Pushed to buy annuities or investments | Salesperson profits from the proceeds | Never let a lender sell you products with the cash |
| Loan due after a long hospital stay | Away over 12 months | Plan for care; keep a co-borrower or spouse at home |
Watch for anyone who offers a “free house” or “government program” that requires a reverse mortgage, a contractor who wants you to take one out to pay for repairs, a family member or new friend pressing you to sign, or a salesperson pushing you to put the proceeds into an annuity or investment. Legitimate HECM lenders can’t take your application until you’ve had counseling. Verify any lender or loan officer on NMLS Consumer Access before sharing information.
Alternatives worth pricing first
| Alternative | Monthly payment? | Upfront cost | Best when |
|---|---|---|---|
| Home equity line of credit | Yes | Low | You have steady income for payments |
| Cash-out refinance | Yes | Moderate | You want a fixed rate and can pay monthly |
| Downsizing | No (if paid cash) | Selling and moving costs | The house is more than you need |
| Property tax deferral or exemptions | No | Minimal | Taxes are the main squeeze |
| Single-purpose reverse loan | No | Low | One need: repairs or taxes |
One warning from inside the industry: taking a cash-out refinance in your early 60s can leave so much debt on the house that a reverse mortgage later becomes impossible. If a reverse mortgage might be part of your plan, ask a counselor before you add to your mortgage.
Our Verdict
You’re 62 or older, plan to stay put for many years, have meaningful equity, can comfortably keep up with taxes and insurance, and want to remove a mortgage payment or build a growing standby line of credit. Start with a HECM, get three quotes and compare the net proceeds.
A spouse is under 62 or not on title, a move into care is likely within a few years, other relatives live with you, or leaving the house to heirs is a priority. The loan can still fit, but each one changes the details.
You can’t afford property taxes and insurance even without a mortgage payment, you’ll likely move within a few years, or someone is pressuring you to sign. Property tax relief, downsizing or a single-purpose loan may solve the problem more cheaply.
Questions people still ask
Who offers the best reverse mortgages for seniors?
Finance of America, Mutual of Omaha Mortgage and Longbridge Financial are the three largest HECM lenders and offer private loans for higher-value homes. Guild, Fairway, South River, Goodlife, All Reverse Mortgage, Movement and the broker Northwest Reverse Mortgage are also worth quotes. The best lender for you is the one with the best written terms for your home.
How much can a 70-year-old get on a reverse mortgage?
Roughly 37% to 41.5% of the home’s value, up to $1,249,125, at today’s expected rates of about 6% to 7%, before costs. For a $400,000 home that’s about $148,000 to $166,000 before costs.
What is the biggest disadvantage of a reverse mortgage?
The balance grows over time, reducing what’s left for you or your heirs, and the loan can be called due if you don’t keep up with taxes, insurance and upkeep. Upfront costs are also high.
What is the 95% rule on a reverse mortgage?
Heirs who want to keep the home after the last borrower dies can pay off the HECM by paying the loan balance or 95% of the appraised value, whichever is less.
What are the 3 types of reverse mortgages?
Home Equity Conversion Mortgages (HECMs) insured by FHA, proprietary or jumbo reverse mortgages from private lenders, and single-purpose reverse mortgages from some state or local agencies and nonprofits.
Is reverse mortgage counseling required?
Yes, for a HECM. You must meet with a HUD-approved counselor before applying. Call (800) 569-4287 to find one.
How this page was checked. The HECM limit comes from HUD’s announcement of loan limits for case numbers assigned from January 1. Eligibility, mortgage insurance, origination and servicing rules come from HUD’s HECM program page; principal limit factors come from HUD’s table as published for case numbers since October 2, 2017. Heir and spouse rules come from the Consumer Financial Protection Bureau. Lender volumes come from FHA endorsement data as reported by industry trackers for August and September; product details and phone numbers come from lenders’ own sites; reported average rates come from an independent September review of July lending data. Market share figures come from New View Advisors via industry press. All example calculations are our own. Rates and offers change daily.
This page is independent and not affiliated with any lender. It is general information, not financial, tax or legal advice. Speak with a HUD-approved counselor, and consider an elder law attorney or fee-only financial planner, before you borrow.
Key sources: HUD HECM program (hud.gov) · HUD loan limit announcement · Consumer Financial Protection Bureau (consumerfinance.gov)