Best reverse mortgage lenders, plus top advice homeowners should know now

As retirement approaches, many seniors find themselves with significant equity tied up in their homes but limited liquidity. And, that’s especially true in today’s inflationary environment, in which elevated consumer costs of everything from gas to groceries are making it more difficult for retirees to ensure that their retirement funds will last as long as they need them to. In turn, some senior homeowners are exploring the benefits of reverse mortgages, as these specialized loans allow them to tap into their home equity without the burden of monthly payments.

The reverse mortgage landscape has evolved considerably in recent years, however, with both government-backed Home Equity Conversion Mortgages (HECMs) and private proprietary programs offering advantages to qualified borrowers. And, not all reverse mortgage lenders offer the same terms, rates or level of service, either. So, if you’re planning to take out a reverse mortgage, knowing which lenders excel in which areas can help you reap the benefits while minimizing the potential risks.

To help you get started, we’ve outlined a few standout reverse mortgage lenders below. We’ve organized them by what sets them apart so you can match a lender to your unique situation and goals.

Start exploring your top reverse mortgage lenders here today.

Best reverse mortgage lenders, plus top advice homeowners should know now

Here are some of the best reverse mortgage lenders broken down into five categories:

Best for budget-conscious borrowers: Longbridge Financial

Longbridge Financial is ideal for budget-conscious borrowers who are seeking a reverse mortgage with minimal upfront costs. It consistently offers some of the lowest interest rates in the industry and waives monthly servicing fees for many borrowers, which can help borrowers save significantly over the life of the loan. 

Longbridge also acts as its own loan servicer, ensuring you’ll deal with the same company from application through repayment. This continuity can be a huge advantage if you want to avoid the confusion that comes when servicing rights are transferred to a third party. Plus, the lender provides an impressive library of educational resources, making it a great fit for first-time reverse mortgage borrowers who want to fully understand their options.

Find out more about Longbridge here.

Best for product variety: American Advisors Group

American Advisors Group (AAG), which was recently acquired by Finance of America, is a dominant player in the reverse mortgage space, offering a wide range of federally insured HECMs as well as proprietary jumbo loans for high-value homes. This variety makes it an attractive choice for homeowners with different needs, whether they want a traditional HECM or need to access more equity than FHA limits allow. 

AAG also provides tailored options for receiving funds, including lump sums, monthly payouts and lines of credit, giving retirees flexibility to structure their loans in a way that fits their financial plans. Both AAG and FOA’s strong reputations for customer service and AAG’s extensive educational materials make this lender particularly appealing for those seeking a highly customizable experience.

Best for large loan amounts: Guild Mortgage

Guild Mortgage stands out for its ability to work with borrowers in unique situations, making it a strong option for homeowners who may not fit the traditional reverse mortgage mold or those looking for larger loan amounts than they could otherwise qualify for. That’s because, alongside standard HECM loans, Guild offers proprietary reverse mortgage products designed for higher-value homes and borrowers looking for larger loan amounts than federal limits allow. 

That flexibility makes Guild an excellent choice for retirees with significant home equity or non-standard property types. The lender also provides multiple disbursement options, including lump sums, lines of credit and monthly payouts, so you can tailor your reverse mortgage to meet your financial goals.

Best for customer satisfaction: Fairway Independent Mortgage

Fairway combines a national presence with the personalized touch of local branches, offering reverse mortgage options backed by high customer satisfaction ratings on third-party review sites. As a result, this lender may be particularly appealing for borrowers who prefer face-to-face lender interactions and hands-on guidance throughout the process. 

Fairway also has a highly rated mobile app for managing the reverse loans it issues, which bridges the gap between in-person service and digital convenience. One potential drawback is that Fairway may transfer loan servicing after closing, so if keeping your loan under one roof is a priority, you may want to ask about this up front.

Find out more about Fairway here.

Best for comparison shopping: Northwest Reverse Mortgage

Unlike direct lenders, Northwest Reverse Mortgage operates as a broker, connecting borrowers with multiple lenders and a wide range of products. This approach allows you to compare rates, terms, and fees across several options without doing all the legwork yourself. Northwest is especially useful if you’re shopping for jumbo reverse mortgages or niche loan types like HECM for Purchase. 

However, Northwest’s reverse mortgage services aren’t available in all 50 states, so if you’re interested in this lender, you’ll need to confirm availability in your area. For homeowners who want a one-stop shop for exploring multiple offers, though, Northwest may offer a flexible, time-saving solution.

Top reverse mortgage advice homeowners should know now

While a reverse mortgage can be a smart way to cover your expenses during retirement, it’s important to approach this type of borrowing carefully. Here’s how you can do that:

• Give serious thought to your timeline. Reverse mortgages are best for homeowners planning to stay in their homes long term. Closing costs and interest can add up, after all, so moving or refinancing soon after signing may leave you short-changed.
• Explore all loan distribution options. You can receive your reverse mortgage funds as a lump sum, line of credit, fixed monthly payments or a combination. HECM lines of credit also grow over time, which can be a powerful tool if you don’t need full funding access upfront.
• Compare total cost, not just interest rates. Look beyond the headline rate to origination fees, mortgage insurance premiums (especially for HECMs) and any servicing charges. Some providers roll fees into the loan, but others bill separately.
• Understand how it impacts benefit eligibility. While reverse mortgage funds aren’t counted as income (so there’s no effect on Social Security or Medicare), keeping large sums in accessible accounts could count as assets, impacting eligibility for things like Medicaid or Supplemental Security Income.
• Plan for the impact on your heirs. Repayment of your reverse mortgage loan funds is required if you move, sell or die. In the latter case, your heirs must repay the loan or refinance in order to keep the house.
• Shop around and negotiate. Terms, rates and fees vary widely by lender, so it can be helpful to use broker options to compare products side by side or reach out to multiple lenders directly to see where you can get the best deal.

The bottom line

Reverse mortgages can unlock vital funds for retirement, but only if they align with your future plans and you find the right lending partner. So, choose a lender that excels where you need it most, whether that’s low cost, support, digital ease or broad options. Most importantly, stay informed about costs, eligibility rules and how the loan fits into your long-term financial picture so you can take advantage of the financial flexibility this borrowing option offers without compromising your home or other benefits.