Where to find reverse mortgages and who offers them
Reverse mortgages come from banks, credit unions, mortgage companies, and specialized lenders — not from a single source. The most common type, a Home Equity Conversion Mortgage (HECM), is insured by the Federal Housing Administration and can be obtained through any lender approved by HUD. Other reverse mortgage products exist outside the HECM program and come from private lenders with their own terms and rules.
The lender you choose matters because rates, fees, and customer service vary significantly. A reverse mortgage from one bank may cost thousands of dollars more than the same product from another, even though the underlying loan works the same way. Shopping across multiple lenders is standard practice and expected.
Key Takeaways
- HUD-approved lenders offer FHA-insured reverse mortgages (HECMs), which have standardized rules but different fees and interest rates depending on the lender.
- Major banks like Bank of America, Wells Fargo, and Reverse Mortgage Funding offer HECMs, but smaller regional banks and credit unions often have lower costs.
- Proprietary reverse mortgages from private lenders work differently and may suit homeowners with higher home values, but they lack federal insurance protections.
- You must be at least 62 years old, own your home outright or have a small mortgage balance, and live in the home as your primary residence.
- Getting quotes from at least three lenders lets you compare origination fees, interest rates, and closing costs before committing.
HUD-approved lenders for FHA-insured reverse mortgages
The FHA maintains a list of approved lenders on its website at hud.gov. You can search by state and see which lenders are currently licensed to offer HECMs in your area. This list changes as lenders enter and exit the market, so it is the most current source.
Large national banks that offer HECMs include Bank of America, Wells Fargo, and Reverse Mortgage Funding. Smaller regional banks and credit unions also appear on the HUD list and often charge lower origination fees than national chains. Local lenders may have less marketing presence but can offer competitive rates and more personalized service.
All HUD-approved lenders must follow the same federal rules: you cannot be charged more than 2% of the home's value in origination fees (with some exceptions for higher-value homes), and all borrowers must complete a HUD-approved counseling session before closing. The counseling is free and takes about 90 minutes, either in person or by phone.
Proprietary reverse mortgages from private lenders
Proprietary reverse mortgages are not insured by the FHA and come from private companies with their own underwriting standards and terms. These loans may allow you to borrow more if your home is worth significantly more than the HECM limit (which varies by county but is capped nationally at $1,089,300 for 2024). They also typically have lower upfront costs because there is no mortgage insurance premium.
The trade-off is that proprietary loans lack federal protections. If the lender fails, there is no insurance backing your loan. Interest rates and fees are set by the lender, not regulated by the government. You should compare a proprietary offer directly against a HECM quote to see which costs less over time — this is not always obvious from the initial numbers.
Lenders offering proprietary reverse mortgages include some of the same companies that offer HECMs, as well as specialized firms. Ask any lender whether they offer both types so you can see both options side by side.
Credit unions and community banks
Credit unions and smaller regional banks often have lower fees than national chains, even though they offer the same HUD-insured product. If you are a member of a credit union, ask whether they offer reverse mortgages — many do, and membership can mean better rates or waived fees.
Community banks may also be more willing to work with borrowers who have recent credit issues or non-traditional income. They typically have more flexibility in underwriting and may move faster through the approval process because decisions are made locally rather than by a distant corporate office.
How to compare lenders and get quotes
Request a Loan Estimate from at least three lenders. By law, all lenders must provide this form within three business days of your request, and it shows the interest rate, origination fee, appraisal cost, title insurance, and all other charges. The Loan Estimate makes it easy to compare apples to apples.
Pay attention to the interest rate type: some reverse mortgages have fixed rates (the rate never changes), while others have adjustable rates that move with market conditions. A fixed-rate HECM typically has a higher starting rate than an adjustable-rate HECM, but the rate never increases. Adjustable-rate loans start lower but can rise, which affects how much you can borrow.
Ask each lender about their customer service reputation. Online reviews on Google, Trustpilot, and the Better Business Bureau can show whether borrowers had problems getting answers or faced unexpected issues after closing. A slightly higher fee from a responsive lender is often worth it.
What you need to bring when shopping
Lenders will ask for proof of age (a driver's license or passport), proof of homeownership (a recent property tax bill or deed), and a recent mortgage statement if you still owe money on the home. They will order an appraisal themselves, so you do not need to provide one upfront.
You will also need to show that you can afford to pay property taxes, homeowners insurance, and HOA fees (if applicable) going forward. Reverse mortgages do not eliminate these obligations, and lenders want to know you can meet them. Bank statements or income documentation may be requested.
Red flags and what to avoid
Avoid any lender who pressures you to close quickly, promises a specific loan amount before the appraisal is done, or charges upfront fees before you have signed a Loan Estimate. These are signs of predatory lending.
Be cautious of lenders who contact you unsolicited by phone or mail offering reverse mortgages. Legitimate lenders expect you to reach out to them. If you do respond to an advertisement, verify that the lender is on the HUD-approved list before sharing any personal information.
Never sign anything you do not understand, and do not let anyone rush you through the counseling session. The counselor works for you, not the lender, and their job is to make sure you understand what you are getting into.
Frequently Asked Questions
Can I get a reverse mortgage from an online lender?
Yes, many online lenders are HUD-approved and offer reverse mortgages entirely through digital channels. You can upload documents, sign electronically, and complete the counseling by video call. Verify the lender is on the HUD list before proceeding.
Do all lenders offer both fixed and adjustable rate reverse mortgages?
No. Some lenders specialize in one type or the other. Ask upfront which products a lender offers so you can compare the options that matter to you. A lender offering only adjustable rates cannot show you a fixed-rate quote.
What if my lender goes out of business after I close?
If you have an FHA-insured HECM, the loan is backed by federal insurance regardless of what happens to the lender. The loan will be transferred to another servicer and you will continue making withdrawals as planned. Proprietary loans do not have this protection.
Can I refinance a reverse mortgage with a different lender?
Yes, you can refinance into a new reverse mortgage with any HUD-approved lender. This makes sense if interest rates have dropped significantly or if you want to switch from an adjustable rate to a fixed rate. You will pay closing costs again, so compare the savings against the new fees.
Do lenders charge different rates based on where I live?
Interest rates are set by the lender and market conditions, not by geography. However, the maximum loan amount you can borrow (the lending limit) varies by county. Lenders may also have different fee structures or service areas, so a lender active in your state may not operate in another.