The Best Reverse Mortgage Companies

Saturday, September 14th

2024 Reverse Mortgage Company Reviews

Longbridge Financial

• 3 reverse mortgage products to choose from (standard HECM, HECM for Purchase, Platinum for higher-value homes or condos)
• $500 discount for US military veterans and spouses
• FHA/HUD-approved lender
• "A+” rated and accredited by the BBB
• Over 900 5-star reviews
• In business since 2012

Longbridge Financial, founded in 2012, is a prominent reverse mortgage lender that aims to help seniors improve their financial security by accessing the equity in their homes. The company offers a variety of reverse mortgage products, including lump sum payments, monthly payouts, and lines of credit, tailored to meet the unique needs of each homeowner. Longbridge Financial prides itself on its transparent and educational approach, providing clients with clear information and guidance throughout the reverse mortgage process. Headquartered in New Jersey, the company is led by a team of experienced professionals with deep expertise in the mortgage and financial services industries.

Several types of reverse mortgages to choose from

There are many different reverse mortgage options at Longbridge Financial, some of which you won't find with the other lenders on our list. Let's take a look.

• HECM Reverse Mortgage: this is the standard option offered by most lenders on our list. You can take out your loan proceeds in a lump sum (up to 60% of the available amount), over time in monthly payments, or as needed in a line of credit. Longbridge Financial also lets you combine any of those three into a solution that best meets your short- and long-term needs.
• HECM for Purchase Reverse Mortgage: if you'd like to take care of two needs at once (moving to a home that's better suited to your current situation, closer to family members, and so on, while still being able to use some of your equity for paying bills), this could be a great all-in-one solution. This type of reverse mortgage can save you money on closing costs, letting you do it all in a single transaction rather than separating your home purchase and your reverse mortgage into two separate contracts.
• Platinum: this is a non-government reverse mortgage option offered solely by Longbridge Financial. It's suitable for those with higher-value homes or condos (which are often not eligible for traditional HECM products) and it comes with a lower minimum age requirement of 55+. You'll want to check with a Longbridge Financial representative to see if this reverse mortgage is available where you live, and make sure that the 55+ age threshold applies in your state too.

You'll have to give them some info

If you'd like to get a sense of what this reverse mortgage lender can offer you, start with the calculator on the website. You'll provide your estimated home value, your age, the amount remaining on the mortgage, and the age of the youngest person on the title (which may be the same as your age, of course). On the next screen, you'll have to give Longbridge Financial all of your contact information in order to access your in-depth analysis and estimate. We're never fans of any site, reverse mortgages or otherwise, that insist on taking down your address and phone number just to give a quote, so this initially docked Longbridge Financial a bit in our estimation (especially since they've got rivals who are happy to provide a preliminary estimate without the data grab).

Get an estimate without a phone call

But, once you do plug in your details, one click will take you to an estimate for the reverse mortgage product Longbridge Financial offers that they think is the best match, based on the details you entered and the purpose you indicated for wanting this type of loan.

Will absolutely protect your privacy

We wanted to dig a little deeper, so we reached out on the phone. Let's just say we loved everything we heard. First, we appreciated that the initial message when you call says right up front that you can be placed on the do not call list (and beyond that, the loan officer with whom we spoke promised to put us on the no marketing, no email list even if we got a quote). The first rep who took our call explained that Longbridge does ask for details to give real numbers prior to an appraisal or application (with no harm done by the credit check), but she certainly respected the desire for privacy (and no spam) and was happy to take the limited information we were willing to offer. The loan officer went on to confirm that as a direct lender, Longbridge Financial has no interest in selling prospective clients' personal information for any reason.

Full transparency

The loan officer with whom we spoke went to great lengths to answer all of our questions. One of the biggest reasons we loved working with Longbridge Financial was the total upfront disclosure of the downsides of reverse mortgages: the loan officer explained in no uncertain terms that, for our example of a prospective client with $700,000 in equity on a free-and-clear home in Wisconsin, the loan fees would be steep (largely due to the 2% of the home's value being payable to HUD). He also said that there's some room for "creativity” with the origination fees at Longbridge: similar to paying points on a traditional mortgage to get a lower interest rate, clients could decide if they'd rather pay more upfront in fees to save on interest over the life of the loan, or less upfront for a higher interest rate. If you're not sure which would be in your best interests, be sure to ask your Longbridge Financial loan officer: you'll be reassured to know that their compensation isn't based on the particular reverse mortgage product you select, so they have no vested interest in pushing you in any particular direction.

Zero pressure to commit to a loan

In the end, we were able to have a quote emailed to us that we could consider at our leisure. The loan officer even made sure to remove our email address from his marketing leads list, out of respect for our request not to get inundated with any unnecessary emails or phone calls. All of this left us feeling very confident in Longbridge Financial's absolute dedication to helping seniors navigate the reverse mortgage process without any pressure.

"A+” from the BBB with few complaints

Longbridge Financial receives the Better Business Bureau's highest recommendation, with an "A+” grade and accreditation. This reverse mortgage lender can't quite claim the "no complaints filed” status of at least one of its rivals, due to having 15 complaints registered with the BBB over the most recent 3-year period. But, that's not exactly a track record of flagrant, rampant issues; most of the ones we read had to do with customers not reading the details of the process and contract closely enough and then getting upset when Longbridge wouldn't grant them an exception.

Recommended by clients - and by other lenders

On a more positive note, Longbridge Financial has over 900 5-star reviews on Trustpilot, with a near-perfect average of 4.9 stars from all ratings. One comment even described how this company came to the rescue when another reverse mortgage lender went out of business just days before the client's closing. Other reviews offer shout-outs for specific loan officers, give compliments for smooth and transparent processes, and overall sing the praises of working with Longbridge Financial for reverse mortgages. We also thought it was extremely telling (in a good way!) when another reverse mortgage lender we evaluated actually referred us to Longbridge Financial (because the rival's service isn't available in our sample senior's state of Wisconsin).

Best all-around option for reverse mortgages

After our very pleasant conversation with a loan officer and a lengthy research process, we're confident in naming Longbridge Financial as our newest first-place option for reverse mortgages. Wherever you are in the process, you can count on this company to take your concerns seriously, to evaluate your situation and make recommendations for the options that will leave you in the best overall position, and to be there for you not just during the application and loan process but for years afterwards. If we were taking out a reverse mortgage today (or helping a loved one to do so), Longbridge Financial would be our first phone call.

Finance of America Reverse

• Offers both traditional HECM reverse mortgages, plus 3 other options for larger loan amounts and for those who don't qualify for traditional loan products
• Over 2,000 reverse mortgage applications per month
• May be able to beat competitor offers with respect to fees
• "A+” rated and accredited by the BBB
• Over 2,000 5-star reviews

AAG is the main public-facing brand of Finance of America Reverse, acquired several years ago, and they're in the process of being completely merged into FAR. So, while you may have spotted a separate website for AAG, just know that you might as well go directly to the FAR site (since that's what's going to happen anyway). Also, don't be surprised if you call the main number for Finance of America Reverse and get a very pleasant "welcome to AAG” type response. Long story short, it's all one and the same.

A bit of a rough start

At first, we had some issues getting to the right place when we reached out to FAR. We called the toll-free number, and our first call simply disconnected after we were told we were being matched with an agent. On our second try, however, we were able to reach someone in customer service who asked us all of the preliminary questions needed to match us with a loan officer licensed in Wisconsin, the state where our case study resident lives. Our second bit of eyebrow-raising happened when the system detected our phone number and identified us... by the name of a deceased family member who, to our knowledge, had never interacted with AAG or FAR (because, to put it simply, she never had a mortgage).

Ask for privacy protection and you'll get it

We say that to emphasize how appreciative we were when the loan officer was extremely understanding of our reluctance to provide the full name, contact information, and address of our 77-year-old client in WI. She went to great lengths to give us as much detail about a possible reverse mortgage for her without having the specifics. It was also a breath of fresh air to be told, "Yes, if you give me her actual address, she will get mail from us” and then to be allowed to provide an alternate address in the same area. It was nice not to get any pushback or problems when trying to protect a senior citizen's privacy.

Might meet or beat competitor quotes

We also respect that the loan officer with whom we spoke was still a salesperson at heart, asking what it would take to earn the reverse mortgage business of our semi-fictitious WI resident. When we mentioned that coming in with better origination fees than competitor offers would be a strong plus, she said that she would welcome the opportunity to beat any competitor offer. So, at AAG/FAR, you may be able to take advantage of a little "price matching”, depending on with whom you speak.

Handles about 2,000 applications per month

One strong reason for considering Finance of America Reverse is the breadth of reverse mortgage products they offer. Of course, you'll find the standard HECM option, backed by HUD/FHA and available to be taken out as a lump sum, monthly payments, or as a line of credit. Those terms and conditions are pretty heavily regulated, and this lender handles a significant volume of applications (about 2,000 per month, according to our loan officer), so you know they know their stuff. You could get some wiggle room with the origination fees, but expect to pay the industry max of $6,000 under normal circumstances.

Loan options beyond the traditional HECM

But, AAG/FAR takes your options further:

• HomeSafe Standard: jumbo reverse mortgages of up to $4 million, including options with no origination fees. Can also be accessed as a line of credit. Comes without mortgage insurance premiums, but are not government-insured like HECM loans.
• HomeSafe Second: these reverse mortgages complement your current mortgage, "unlocking a piece of your stored equity without the burden of a new monthly payment or the need to refinance”.
• EquityAvail: this is Finance of America Reverse's solution for those who don't qualify for a traditional reverse mortgage. It requires partial interest payments in the first 10 years, but then no monthly mortgage payments for the remaining portion of the loan.

A few downsides

However, there are a few reasons why AAG/Finance of America Reverse doesn't earn our highest rating. First, there is definitely an emphasis on marketing here; even though they allowed us to sidestep it quite kindly, not everyone will know to do that for themselves and may be unhappy with getting mail, emails, calls, and so forth. Second, we found out that AAG is indeed the lender and the originator and will "likely” service the loan once it's funded, but they don't guarantee that they won't sell off your reverse mortgage loan to another lender. We've seen some not-great things with a few lenders who pass along their borrowers to other servicing companies, so we weren't thrilled to hear that's not a given with AAG/FAR.

Available in most, but not all, states

Finally, our research indicates that while the merged companies now serve the vast majority of Americans, you may still be out of luck here if you live in New York or Massachusetts. That's not uncommon: New York can be a tricky state regulation-wise, and many lenders on our list don't operate there either. It's just worth pointing out before you get your hopes up.

Lots of clients give the company 5 stars

But, those issues are pretty minor, and Finance of America Reverse alone has over 2,000 5-star ratings from super-happy clients (and AAG's results tend to come in approximately the same). In this transition/merge period, it's tricky to determine which brand name should have the most sway on the overall reputation, but fortunately it's very positive no matter where you look. Both brands have an "A+” rating and accreditation from the Better Business Bureau, and we didn't really see anything that was cause for concern.

Excellent choice overall

While we're still waiting for a bit of the dust to settle around the merger between AAG and Finance of America Reverse, the experience with our loan officer set our mind at ease that even though there may be a proverbial "pardon our mess” sign while the details get worked out, it's business as usual over there. We had a genuinely fun time talking with our loan officer, who deftly handled our questions and helped us feel like a reverse mortgage was going to be a smooth experience. The downsides are what they are (the lack of a guarantee that they'll service the loan indefinitely and the potentially spammy mail and other forms of contact), but the upsides here are too good to overlook.

GoodLife Home Loans

• Offers lump sum, fixed monthly payments, line of credit, or a combination of those options
• Available in 38 states
• FHA- and HUD-approved lender
• "A+” rated and accredited by the BBB
• Hundreds of 5-star reviews
• In business since 2012

Founded in 2012, GoodLife Home Loans serves as the "direct-to-consumer” reverse mortgage division of Traditional Mortgage Acceptance Corporation (TMAC). The company is committed to simplifying the process of understanding, applying for, and ultimately getting a reverse mortgage, whether you opt for a lump sum payment or a line of credit. They deliver all of their services with transparency, respect, and integrity.

Site is a bit outdated but they're in business

As you first start browsing the GoodLife website, you might be wondering if they're still in business: the site copyright at the time of our visit was a year out of date, and we found announcements for "new changes in 2022” (which was several years in the past). But, we were reassured that the lights are on and someone is definitely home at GoodLife when we were promptly connected with a representative over the phone.

No pressure, just helpful info

That rep did an incredible job of giving us objective information about reverse mortgages. There was no high-pressure sales-y feeling to the call, only a sense that he wanted us to make the best possible decision for our circumstances, whether or not that would be using GoodLife to take out a reverse mortgage (or with any other lender). We weren't pressed to provide any contact information or disclose any details about our fictitious elderly homeowner's situation. In fact, the rep gave us several resources to look into that were beyond the GoodLife website, like reading up on reverse mortgages on the well-known Investopedia website and calling our county tax assessor's office to see if a homestead exemption might help save our senior a few dollars on property taxes.

They're not trying to own your home

We were also reassured that GoodLife isn't interested in winding up owning the homes for which they facilitate reverse mortgages. Our representative explained that there are really only three cases where a home would be foreclosed on, and they're similar to traditional home ownership: the county can foreclose if property taxes aren't paid, the lender can foreclose if the homeowners insurance isn't paid (but lender usually pays it because it's cheaper and easier than the foreclosure process), or if the property is condemned by fire department.

Check on your insurance and any needed repairs

And, speaking of homeowners insurance, the rep suggested making sure that the current coverage is enough for the current market's replacement value, given how home prices have skyrocketed over recent years. That's something that will come up regardless of the reverse mortgage company you select, and he said it would be wise to check on that sooner rather than later. Similarly, if there are any health/safety issues in or around the home, expect that they'll need to be taken care of in some way; at GoodLife, they often include the requirement to make needed repairs or upkeep as part of the reverse mortgage loan amount, earmarking a portion of the funds for the homeowner to work with the contractor of their choice and then report back to GoodLife when they've been completed.

Clear explanation of how the reverse mortgage works

For the homeowner we used as an example, GoodLife's rep recommended a Line of Credit reverse mortgage. He explained that it differs from a traditional HELOC in that the funds are available with no time limit (while HELOCs often have to be drawn from in a period of 5-10 years). As long as the homeowner continues living in the house, those funds will never be shut down due to inflation or any other reason. Better yet, the funds drawn from a Line of Credit reverse mortgage are tax-free, and homeowners can see a growth rate in the available funds (an initial balance of $100,000 that climbs to $107,000 in the second year).

You'll understand all of the fees

How about fees? GoodLife's representative didn't give us any specifics (partly because he didn't happen to be licensed in the state of our sample senior's residence), but he did offer to connect us with a colleague who was so licensed. When we declined for the time being, he let us know to expect a 2% fee of the appraised value for the upfront mortgage insurance fees that are paid to HUD/FHA; we appreciated that he explained that such insurance makes these reverse mortgages "non-recourse”, or in other words, they can't come after the heirs to pay off the debt when the homeowner passes away. Other fees include the required counseling (typically $150 to $200 paid to the counseling agency of your choice), origination fees, and third-party fees that vary by state.

Not available in some states

Speaking of states, here's the one downside that keeps GoodLife from ranking at the top of our list: their reverse mortgages are only available in 38 states. If you live in New York, Nevada, Massachusetts, Nevada, or a handful of other locations, you won't be able to use this lender.

If they serve your area, give them a call

Other than that, though, GoodLife is an excellent choice. It's one of the only lenders on our list that not only has accreditation and an "A+” rating from the Better Business Bureau but also has zero complaints filed there. And, across 400+ reviews on Trustpilot, a staggering 97% give GoodLife a perfect 5-star score. Time and again, homeowners praise specific reps for keeping them well-informed and being patient with answering questions. If you're fortunate enough to live in one of the states where GoodLife Home Loans is available, we highly recommend giving this reverse mortgage company your full attention.

Mutual of Omaha

• Offers standard HECM, HECM for Purchase, HomeSafe (borrow up to $4 million), and reverse mortgage refinancing
• Lower out-of-pocket costs than some reverse mortgages
• Licensed in 48 states (minus New York and one other)
• Recently acquired Retirement Funding Solutions
• "A+” rated and accredited by the BBB
• Hundreds of 5-star reviews
• In business since 1909

If you like the peace of mind of working with a reverse mortgage lender that's been around for over 100 years, Mutual of Omaha would love to earn your business. They're one of the bigger names in the industry, serving customers nationwide.

RFS is now part of the family

Mutual of Omaha recently acquired another reverse mortgage company, Retirement Funding Solutions. We just wanted to mention that, in case you happen to come across RFS separately. You'll wind up with all of Mutual of Omaha's reverse mortgage products if you start at RFS, so we'd recommend simply starting at Mutual of Omaha's site instead.

Not the smoothest beginning

However, on the website, we got stuck in a loop trying to fill out the initial property information; it kept giving us the correct address in the dropdown, then sending us back to the beginning and telling us the address wasn't valid after all. We also weren't thrilled with the fine print that says that doing so would give our consent to be contacted via text, email, phone, by Mutual of Omaha, their family of companies, or even third-party associates. Ew.

You may have to insist on privacy upfront

So, we gave Mutual of Omaha a call, to see if we could get the info we needed that way. The first person (the one who directs the call to the right place) wasn't very happy when we weren't willing to provide those kinds of details either, going so far as to say we'd have to provide it to get connected with a loan officer. But, our persistence prevailed, and eventually we were connected with a loan officer licensed in Wisconsin, the state we gave for the senior citizen's profile we were using for comparison across reverse mortgage lenders.

Some perks we didn't get elsewhere

That loan officer was much more understanding about allowing us to protect our personal information until we felt more comfortable. He explained all of the ins-and-outs of reverse mortgages, including all of the ballparks for our sample senior in Wisconsin. As one would expect in such a tightly-regulated industry, Mutual of Omaha's reverse mortgages didn't have too many surprises compared with other lenders on our list. But, we did hear that this lender will drop the out-of-pocket cost for the appraisal during the application process to just $200 (and then roll the remaining $300 to $500 into the closing costs). We appreciate that this was the only lender that mentioned the HUD-required counseling and the associated cost for that.

A little iffy on the explanation

On the downside, we didn't like that the loan officer described the money available through a reverse mortgage as something that "grows like an investment or a savings account”. Our understanding is that the available amount goes up from one year to the next, as the borrower's age increases, but that it's certainly not something that is putting more interest-free money into her pocket.

Not forthcoming with options for lower fees

We also noticed that no mention was made of any lower-cost options for origination fees. The loan officer kept referencing the $6000 amount (the legal limit) and only made a vague reference to the possibility of lower origination fees if our senior took a larger draw at the time of closing, but he wasn't very forthcoming with any kind of details on that.

2 states are excluded

Finally, we noticed that Mutual of Omaha is licensed in 48 states. Overall that's a win (compared with some lenders on our list and their more limited service areas), but our rep couldn't tell us which states were excluded. His best guess was that New York was one of them. We tried scrolling through the list of licensed states on the website, and, sure enough, there's no New York. However, there's more than one more state that's also missing (like Georgia and Delaware), so just keep in mind that most, but not all, of the 50 states are on Mutual of Omaha's list.

Full-service from start to finish

But, going back to the pros instead of the cons, Mutual of Omaha is a full-service lender. That includes the servicing after your reverse mortgage has been funded, and it matters: some rivals hide the fact that they're not the ones you'll be dealing with afterwards, whether they move you to another division of their own company or sell off your loan to another servicer, and that can lead to some pretty unhappy customers.

Multiple reverse mortgage types to choose from

You'll also have multiple reverse mortgage products to choose from: the standard HECM, HECM for Purchase (if you're looking to move into a new home and take advantage of a reverse mortgage at the same time), HomeSafe (similar to a jumbo loan; lets you borrow up to $4 million), and reverse mortgage refinancing loans.

Positive reputation

And, Mutual of Omaha has an "A+” rating and accreditation from the Better Business Bureau. We found over 400 reviews on Trustpilot from reverse mortgage customers here, and over 75% of them gave the service a perfect 5-star score. Many of those reviews were from the month leading up to this evaluation, showing that Mutual of Omaha is actively engaged in the reverse mortgage industry.

Reliable lender for reverse mortgages

All told, we give Mutual of Omaha a good score among companies offering reverse mortgages. It isn't that there's anything overly bad or negative about how they do business; it's more that, from our perspective, there are other services that are doing it in a way that's a little more customer-friendly. That being said, if you reach out to Mutual of Omaha and get a quote that you like for your loan, there's no reason not to move forward.

All Reverse Mortgage

• Preliminary quotes available online
• Available for properties in Arizona, California, Oregon, Washington, Colorado, Georgia, Florida, North and South Carolina, Virginia, Pennsylvania, New Jersey, and Texas
• HUD-approved direct lender
• Current interest rates displayed on website
• "A+” rated and accredited by the BBB
• Finalist for the BBB's Torch Ethics Award for three consecutive years
• In business for two decades

All Reverse Mortgage ("ARLO") is a well-regarded reverse mortgage lender known for its commitment to transparency, customer service, and competitive rates. With a user-friendly online platform, ARLO simplifies the application process and offers extensive resources to help you understand your options. This company is dedicated to ensuring that you receive clear, honest information and support throughout your reverse mortgage journey.

Exceptional reputation

Let's start with some of the big upsides for doing a reverse mortgage through ARLO. First, All Reverse Mortgage has a literally perfect record with the Better Business Bureau: an "A+” rating, accreditation, and zero complaints filed with the BBB in the three years leading up to this review. On top of that, almost 100 people went to the BBB site to leave a 5-star review for this reverse mortgage company, describing helpful and efficient loan officers, quick paperwork processes, and an overall stellar experience. We also thought it was a nice touch for ARLO to show dozens of hand-written reviews on their own website (though we know those are, of course, curated by the lender). All Reverse Mortgage is so well-respected by the BBB that they were finalists for the Torch Ethics Award for at least three years.

Extremely transparent

You can see current interest rates right on the ARLO website, no guesswork required. Just scroll down on the main page to see where they're at. (At the time of our review, adjustable rates started at 6.950% with a 1.750 margin, and fixed rates started at 7.560% with a 9.080% APR). We also love All Reverse Mortgage's transparency when it comes to getting ballpark estimates for their various loan products. All you have to do is put in your zip code, street address, approximate property value and mortgage balance, birthdate, name, address, and phone number, and you'll be able to click on an analysis specific to your details. Here's a hint, though: you can always enter information that is similar to your own (a different birthdate in the same year, an address down the street, a fake phone number) if you'd rather just see what ARLO provides as preliminary reverse mortgage options.

West Coast hours

You'll see on the summary that ARLO works hard to get you the best overall payout with the lowest closing costs, with both fixed- and variable-rate reverse mortgage loan options, and with the best overall numbers over time. It'll also show you how much is available to borrow, based on the details you provided. Of course, the best route to get to your options with ARLO is to speak with one of their representatives; just keep in mind that they're based on the West Coast, so you might have to wait to reach someone (if you're calling during business hours in Orange County, Florida, you'll have to wait until Orange County, California comes online to return your phone call).

Very limited service area

But, as we confirmed with a phone call to ARLO, this reverse mortgage lender doesn't originate loans in all 50 states. The sample customer that we used, a 76-year-old woman in Wisconsin, was ineligible to use All Reverse Mortgage. That caught us off-guard, because we were able to enter her information and get a preliminary quote on the ARLO website. While the rep on the phone didn't list where they do and don't operate (and it would have been weird for us to ask!), their site's list of licensed states only includes Arizona, California, Oregon, Washington, Colorado, Georgia, Florida, North and South Carolina, Virginia, Pennsylvania, New Jersey, and Texas. (We were reassured, though, when the ARLO rep with whom we spoke said that she'd be happy to refer us to a reputable service that did serve Wisconsin, the one she recommended was already our #1 service!)

Worth considering if they're available where you live

If you live in one of the states where All Reverse Mortgage operates, lucky you! We have no problem recommending that you take a look at what they can offer, speak with a representative, and ultimately go with them for your lender. But, because the vast majority of Americans aren't going to be eligible for their service, we can't give All Reverse Mortgages a higher rating. Everyone else should go directly to the top of our list to our #1 provider; even All Reverse Mortgage recommends them.

Liberty Reverse Mortgage

• Can get a traditional HECM loan, HECM for Purchase, or reverse mortgage refinancing
• Available in all states but New York and Hawaii
• Options for reverse mortgage loans with no origination fees
• Loan servicing done through a separate company
• "A+” rated and accredited by the BBB
• In business for over 20 years
• Thousands of 5-star reviews

Liberty Reverse Mortgage is a big player in the reverse mortgage industry, with over 60,000 borrowers helped and $7.5 billion in loans funded. They've been around for two decades, helping seniors turn a portion of their home equity into usable funds.

Offers most types of reverse mortgages

Liberty offers the traditional HECM reverse mortgage option, where you can get a lump sum, monthly payments, or a line of credit. They also have HECM for Purchase, if you'd like to buy a new home and take advantage of your equity with a reverse mortgage in the same transaction. However, Liberty doesn't have any non-governmental reverse mortgage options; some of its competitors have proprietary, jumbo loans for borrowing up to $4 million.

Start with a preliminary screener

To find out if you're eligible for a reverse mortgage from Liberty, you'll start by entering your age, the approximate value of the home, and the amount currently owed on the mortgage (if any). This will determine if you meet the basic criteria. If so, you'll then be taken to a page asking you to enter your name and address, phone number, and email address so that a property search can be conducted. But, it didn't seem like anything was actually done with that information; the "property value” was still marked as "data needed” on the preliminary report, making it feel like the real purpose of the form was for Liberty's benefit (getting our name and number) and not ours as the prospective client.

Won't go to great lengths to protect your privacy

We got a similar push for that when we called to speak with a Liberty representative. The first rep wasn't sure if they had someone licensed in our sample state of Wisconsin; to be frank, we weren't sure they did either, given that there are only a handful of states on the Liberty website listed as having licensure. However, we were eventually transferred to a loan officer who was licensed in WI (and who confirmed that this reverse mortgage company is licensed in all 50 states, though some states' requirements mean that they're not currently doing reverse mortgages, with Hawaii and New York being in that category). The loan officer wanted a specific property address to be able to offer a quote over the phone; unlike some of the reverse mortgage companies we reached out to, Liberty wasn't willing (or able?) to take just a zip code or even a neighbor's address to give us a ballpark estimate. The representative also didn't offer to remove our number from their call list or protect our privacy in other ways, which was a downside especially compared with our #1 reverse mortgage option.

Will give you lots of info over the phone

However, on the positive side, the loan officer took a lot of time to answer what questions he could in the absence of specifics for our example client in Wisconsin. Like most of the reverse mortgage companies we spoke with, he recommended a line of credit for her situation (owning a home free and clear, and concerned about making ends meet going forward but not having any immediate cash needs). He made sure to explain that there's no prepayment penalty and no reporting to the IRS (these loans aren't considered income in any way). He also said that the application process would take into account the senior's personal credit history (not the score but whether or not there were any late payments or charge-offs in the last two years), their income with respect to being able to continue paying property taxes and insurance into the future, and the health and safety aspects of the residence.

You may have to make repairs first

On that last note, the loan officer at Liberty said that they don't guarantee that any repairs required by the appraiser could be rolled into the reverse mortgage loan: in other words, the borrower might have to take about a loan (like a HELOC) somewhere else to make the repairs, and then use the reverse mortgage they get when the repairs are done to pay off that other loan. (Feels a little like robbing Peter to pay Paul, right?)

Options for reverse mortgages with no origination fees

Going back to the upsides, Liberty offers some reverse mortgages with zero origination fees. We appreciated that the loan officer explained that per HUD regulations, no lender can charge more than $6,000 for origination, and at the time of this review we hadn't found any other provider with the possibility of paying nothing for origination. You would roll that cost into your loan, of course, and the trade-off is that you'll pay more in interest, but you can decide if that's right for your circumstances. Also, at the time of our research, Liberty's interest rates were coming in right around 7%, which was on par with rival lenders on our list.

"A+” from the BBB and lots of 5-star reviews

Reputation-wise, Liberty Reverse Mortgage is a little more of a mixed bag than some of the rival lenders on our list. They start out strong with an "A+” rating and accreditation from the Better Business Bureau, and zero complaints filed there in the last 12 months. Also, we found over 1,500 5-star reviews; clients describe the process as lengthy but worth it, and they describe their loan officers as being friendly and knowledgeable.

Servicing has a not-great reputation

However, we saw less-than-pleased comments from reverse mortgage customers who weren't aware that Liberty turns over all loans to a sister company, PHH, for loan servicing. (We confirmed that relationship with the rep in our phone conversation.) And, when you look at PHH's reputation, it's not nearly as sparkly as Liberty's, starting with 204 BBB complaints in the last year. In other words, your happy-go-lucky experience with Liberty gets you in the door, but you could wind up really unhappy with the way PHH handles your account after all is said and done.

Look at rival options first

All combined, Liberty comes in at a "just average” rating for us. We're not concerned about the company's reliability, and it's true that thousands of people have a great experience getting their reverse mortgages here. However, we're not excited about the prospect of having a poor experience with PHH afterwards, and there are other lenders on our list who keep everything in-house from start to finish. We'd recommend you look at the higher-ranked options we've evaluated before you commit to Liberty for your reverse mortgage.