As 62 years old American citizen that owns the house that you live in, you may be eligible for a reverse mortgage. A reverse mortgage is an agreement or a contract between you (the homeowner) and a lender (usually the bank), through which you can transform the equity of your home into cash. This payment will be made to you either as a lump sum or through monthly payments over a certain tenure. It is one of the best ways to have some cash when you’re older, especially if you have no plans to pass your home on to someone else or don’t intend to settle elsewhere.
Aside from your age and the fact that you need to be the owner of the house, the Federal Housing Administration (FHA) requires that you keep the property well-maintained, have regular homeowners insurance, and be a regular tax-payer, especially of real estate. Instead of you having to pay the mortgage, you are paid the same by the lender. Hence, the term reverse mortgage.
Let’s take a quick look at the four best reverse mortgage companies right now.
American Advisors Group
If you were to look at the volume of reverse mortgages granted in 2021, then the American Advisors Group has consistently emerged at the top. The company is also recognized for its customer satisfaction and ethical norms. 97% of clients served by the AAG have given it a positive rating. The company offers different types of reverse mortgages and brings a specialist on board to help you with the ideal one. So, you receive useful tips and know-how before you arrive at your decision.
Quontic Bank
If we were to describe Quontic Bank to you, we would use the words long-standing reputation, adaptability, and high customer service standards. The company is among the few older banks that have worked around its products to offer user-friendly reverse mortgage options to its customers today. Moreover, all of its products can be accessed online either through its website or mobile app. Quontic outdoes every other lender in the category of long-term loans. It has a tenured loan that continues to pay you for the time you stay in the home.
Liberty Home Equity Solutions
For middle-class homeowners with good credit, Liberty could be the best lender option. It offers very flexible terms, many reverse mortgage specializations, and the Liberty Ironclad Guarantee, where it attempts to match the costs of its competitors’ and close loans in 60 days. The lender started only in 2013 with an exclusive focus on reverse mortgages. It is an excellent choice for someone looking for an accessible lender with a high level of transparency in operations and the ability to sign up for products from the comfort of one’s home.
Reverse Mortgage Funding
Reverse Mortgage Funding or RMF has a product known as the Equity Elite reverse mortgage program. Through this, borrowers can qualify for a reverse mortgage at the age of 60, unlike the usual 62 required by the FHA. Even if you have a non-FHA condo, you may be eligible to apply, which is a huge plus for many borrowers who may otherwise struggle. The company also provides a ton of educational resources, including a webinar. Another interesting offer by RMF is the Customer For Life program, whereby it promises its customers not to sell their debt in the securities market. Another promise it makes is to provide a USD 500 gift card to its customers in case it is unable to match the offer of a competitor.
