Our Featured
Reverse Mortgage
Companies For 2025

Understanding Reverse Mortgages

A reverse mortgage is an increasingly popular consumer loan for senior homeowners age 62+. It allows these senior homeowners to tap into the home equity that has been built up. There are no monthly mortgage payments but homeowners are still responsible for paying property taxes, insurance, and maintenance. The repayment of the loan is deferred until the homeowner dies, sells or moves out of the home. Because there are no monthly mortgage payments and homeowners can generally receive their home equity as tax-free cash this particular type of loan has seen over 1,000,000 seniors take advantage.(1)

How Does a Reverse Mortgage Work?

To qualify for a reverse mortgage loan you must own a home, be at least 62 years old and have enough equity built up in your home. The loan works by making payments to the borrower based upon a percentage of the equity that has been built up in the home. The loan is repaid when the borrower sells the home, moves out of the home or dies. The factors which impact the loan amount for which you may be eligible for include your age, the value of your home, interest rate and whether your home conforms with the Federal Housing Administration's (FHA) mortgage limit of $1,149,825.

What Are The Pros and Cons of a Reverse Mortgage?

There are several considerations to make before deciding to proceed with a reverse mortgage loan. As with any large decision, it's helpful to have an understanding of the pros and cons associated. Some of them include:

What is the Process of Getting a Reverse Mortgage?

The process of getting a reverse mortgage loan is pretty straightforward and typically entails the following steps:

• 1

  Research and identify companies that may be right for you. Fill out an online form or give them a call to start the process.

• 2

  Discuss what options may be available to you; what you may qualify for; what the time required to close your loan looks like and to have your questions answered.

• 3

  Attend a counseling session from a licensed third party counseling agency. Housing and Urban Development (HUD) maintain a list of counselors available in your state.

• 4

  Complete an application with the company that you've selected. This is similar to a traditional forward mortgage in that you fill out several pages of documentation to formally apply.

• 5

  Underwriting and loan processors then take over and handle everything from getting your house appraised to ensuring that all of your paperwork is in order.

• 6

  Close your loan and choose your disbursement options. At this stage, you've completed the process and can now choose exactly how you’d like to receive the proceeds of the loan and when.

How We Rate Reverse Mortgage Lenders

We identify reverse mortgage companies. Reverse Mortgage companies are evaluated based on six factors that we believe are important for consumers:

• Years in Business

• Number of Products Offered

• Customer Service Availability

• State Licensing Footprint

• Better Business Bureau (BBB) Ratings

• Inclusion of A Mobile Application

Please find a full description of our ratings system here.

Disclosure: We do receive advertising compensation from some partners, which influences what companies appear on our site and where they appear. For additional details please click here.