Best Reverse Mortgage Lenders in California 2024 | Top Picks & Reviews

Best Reverse Mortgage Lenders in California: Top Picks for 2024

For many seniors in California, a reverse mortgage offers a way to tap into home equity to supplement retirement income. With various lenders offering competitive rates and terms, it’s important to know which reverse mortgage providers stand out in 2024.

What is a Reverse Mortgage?

A reverse mortgage allows homeowners aged 62 or older to convert part of the equity in their homes into cash. Unlike traditional mortgages, you don’t make monthly payments. Instead, the loan balance grows over time and is repaid when the homeowner sells the property or passes away. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA).

Now, let’s explore the best reverse mortgage lenders in California:

1. American Advisors Group (AAG)

Best for Fast Processing & Educational Resources

AAG is one of the largest reverse mortgage lenders in the U.S. and a trusted name in California. They offer a variety of options including HECM loans, jumbo reverse mortgages, and refinancing loans. AAG stands out for its customer service, with fast processing times and a wide range of educational materials to help homeowners and their families understand the process(Retirement Living)(Zreversemortgage.com).

Pros: Fast processing (usually within 30 days), strong educational support, flexible loan options.
Cons: Not fully transparent with fees upfront.

2. Liberty Reverse Mortgage

Best for Affordability

Liberty Reverse Mortgage focuses on making reverse mortgages more accessible to seniors. They offer flexible terms and bundle upfront fees into the loan, making the process more affordable for those who might not have cash for closing costs. Liberty also offers products like HECM loans and proprietary reverse mortgages(Investopedia)(Benzinga).

Pros: Affordable upfront fees, nationwide availability, and highly rated customer service.
Cons: Fewer online resources compared to some competitors.

3. Finance of America Reverse (FAR)

Best for Innovative Loan Options

Finance of America Reverse is a top choice for those seeking more flexibility in their reverse mortgage options. FAR offers HomeSafe, a proprietary reverse mortgage product, which allows for higher loan amounts and access for younger borrowers (starting at age 55). This makes it ideal for seniors looking to downsize or relocate(Benzinga)(Zreversemortgage.com).

Pros: High loan limits, availability in 50 states, flexible product offerings.
Cons: Proprietary products only available in 26 states, including California.

4. Longbridge Financial

Best for Customer Service

Longbridge Financial has built a reputation for excellent customer service, with agents who are dedicated to guiding seniors through the reverse mortgage process. They offer both HECM loans and proprietary reverse mortgages, and have a unique approach to educational resources, helping borrowers make informed decisions(All Reverse Mortgage)(Benzinga).

Pros: Top-notch customer service, flexible loan structures, educational support.
Cons: Slightly longer processing time (up to 45 days).

5. Reverse Mortgage Funding LLC (RMF)

Best for Easier Qualifications

RMF offers flexible qualification criteria, allowing some borrowers as young as 55 to access reverse mortgage products like Equity Elite®. This lender focuses on making the process simple, and its price match guarantee ensures competitive rates(Investopedia)(Zreversemortgage.com).

Pros: Lower age requirements (55+), competitive rates, quick approvals.
Cons: Limited online tools, not available in every state.

How to Choose the Best Reverse Mortgage Lender

When selecting a reverse mortgage lender in California, consider the following:

Loan Terms & Fees: Look for transparent lenders who clearly outline upfront costs and long-term interest rates. A higher lender margin could result in higher interest rates over time, so make sure you compare offers(All Reverse Mortgage).
Processing Time: If you need quick access to funds, opt for lenders like AAG, known for fast processing.
Customer Service & Support: Since reverse mortgages are long-term financial products, excellent customer service is critical. Companies like Longbridge Financial and Liberty are known for their commitment to helping customers through every step of the process.
Eligibility Criteria: While most reverse mortgages require borrowers to be 62 or older, lenders like FAR and RMF offer products to those as young as 55, making them an option for younger seniors.

Conclusion

Whether you’re looking for flexibility, affordability, or top-tier customer service, the best reverse mortgage lenders in California offer a range of products to fit your needs. AAG, Liberty, FAR, Longbridge Financial, and RMF stand out as top choices for 2024. Make sure to compare their terms, fees, and services to find the reverse mortgage that best suits your financial situation.

FAQs

Q: What is the minimum age requirement for a reverse mortgage?
A: The standard minimum age is 62, but some lenders, such as FAR and RMF, offer options starting at age 55(Benzinga)(Investopedia).

Q: Are there upfront costs associated with reverse mortgages?
A: Yes, upfront costs like origination fees, appraisal fees, and FHA insurance can range from $5,000 to $19,000, but some lenders like Liberty may bundle these costs into the loan(Investopedia)(All Reverse Mortgage).

Q: How long does it take to close a reverse mortgage?
A: Most reverse mortgage loans close within 30 to 45 days, with AAG and Liberty being the fastest(Retirement Living)(Zreversemortgage.com).