Best Reverse Mortgage Companies and How HECMs Work in 2026

How a HECM works

With a regular mortgage, you pay the lender each month and your balance shrinks. A reverse mortgage works the other way. The lender pays you, interest and fees are added to the balance, and the debt grows. The loan generally comes due when the last borrower dies, sells or moves out for good.

Who qualifies

• You're 62 or older.
• You own the home outright or have a lot of equity. Any existing mortgage is paid off from the proceeds.
• It's your principal residence: a single-family home, a 2–4 unit home you live in, an FHA-approved condo, or a manufactured home that meets FHA standards.
• You're not delinquent on federal debt, such as federal student loans or taxes.
• You can keep paying property taxes, homeowners insurance and HOA dues. Lenders check this in a financial assessment.
• You complete a session with a HUD-approved HECM counselor before applying. Counseling fees vary by agency and can depend on your income and debts.

How much you can get

Your available amount (the "principal limit") depends on three things: the age of the youngest borrower or eligible non-borrowing spouse, current interest rates, and the lesser of your home's appraised value or the HECM limit. For 2026, that limit is $1,249,125, up from $1,209,750 in 2025. Older borrowers and lower rates mean more money. You will never get the full value of the home.

Your payout options

Source: HUD, How the HECM Program Works.

The fixed-rate lump sum is the only fixed option. It means paying interest on the whole amount from day one. A line of credit means you only pay interest on what you draw. The CFPB warns against tapping equity too early: plan as if you'll live a long time.

What a HECM costs

Source: HUD, How the HECM Program Works; CFPB, "What will a reverse mortgage loan cost me?"

Example: On a home appraised at $400,000, the origination fee hits the $6,000 cap (2% of $200,000 is $4,000, plus 1% of the next $200,000 is $2,000). The upfront MIP is 2% of $400,000, or $8,000. That's $14,000 before title, appraisal and other closing costs. You can usually finance these costs, but that reduces the cash you can take out. Lenders can charge less than the cap on origination, so the fee is worth negotiating.

Spouses and heirs

If your spouse isn't on the loan

If one spouse is under 62, they can't be a borrower but may be listed as a non-borrowing spouse. For HECMs with FHA case numbers assigned on or after August 4, 2014, an eligible non-borrowing spouse can stay in the home after the borrower dies or moves into a care facility for more than 12 consecutive months. To qualify, the spouse must:

• have been married to the borrower at closing and stayed married until the borrower's death;
• be named as a non-borrowing spouse in the loan documents;
• have lived in the home at closing and keep living there as a principal residence; and
• keep up with taxes, insurance and the other loan terms.

The non-borrowing spouse can stay but receives no more loan money. Payments stop. Budget for that before signing. A younger spouse also lowers the amount you can borrow.

What heirs owe

Heirs who want to keep the home must repay the lesser of the full balance or 95% of the appraised value. Otherwise, they can sell the home and keep any equity left over.

Default risks: how borrowers lose their homes

You don't make monthly loan payments, but you still have obligations. If you fall behind on property taxes or homeowners insurance, or let the home fall into disrepair, the loan can be called due and the lender can foreclose. The CFPB warns that ads "don't always tell the whole story," including that you can lose your home.

If the financial assessment shows a risk you'll fall behind, the lender may require a Life Expectancy Set-Aside (LESA). This sets aside part of your loan to pay taxes and insurance. In May 2026, HUD's Inspector General found LESA calculations didn't keep up with rising property charges. An estimated 1,237 borrowers will run out of set-aside funds sooner than HUD projected and will have to pay taxes and insurance out of pocket. Rising premiums are a real risk, so check whether your homeowners insurance costs are likely to climb.

Proprietary (jumbo) reverse mortgages

Private lenders offer reverse mortgages outside the HECM program. These are not federally insured, so they don't charge FHA mortgage insurance. They suit higher-value homes above the HECM limit. Some also accept younger borrowers.

• Finance of America HomeSafe: loans from $200,000 up to $4 million. Age 55+ for some products in some states (60 in Massachusetts, New York and Washington; 62 in North Carolina and Texas). HomeSafe Second is a second-lien version that lets you keep your current mortgage.
• Longbridge Platinum: up to $4 million, age 55+, lump sum or line of credit. CNBC Select reported it in about 24 states, with roughly 50% equity typically needed.

Proprietary loans lack some HECM protections and federal rules, so read the terms on spouses, payout options and rates closely.

The largest reverse mortgage lenders

These lenders lead the HECM market by volume. Volume shows scale, not quality, and this isn't a ranking of which is best for you.

Source: HousingWire, citing Reverse Market Insight data (June and September 2026); CNBC Select Longbridge review (Dec. 2025).

Guild Mortgage, Plaza Home Mortgage, New American Funding and HighTechLending also ranked in the June 2026 top 10. On Mutual of Omaha: Bloomberg reported in September 2026 that the parent company had hired an adviser to explore selling the mortgage business, with no final decision.

How to compare lenders

1. Do counseling first. A HUD-approved counselor must review your situation before you apply. Use it to explore alternatives, such as downsizing, a traditional refinance, or local tax relief programs.
2. Get offers from at least two or three lenders. HUD sets the mortgage insurance, but lenders set the interest rate and can charge less than the $6,000 origination cap.
3. Compare the principal limit and the total cost. A lower interest rate leaves more equity over time because less interest compounds onto the balance.
4. Get spouse terms in writing. Confirm a younger spouse is listed correctly as a non-borrowing spouse.
5. Be wary of pressure. Walk away from anyone who pushes you to buy annuities, insurance or investments with the proceeds.

Build the loan into a full retirement budget, including taxes, insurance and repairs. Our guide to making a budget can help. For more on the basics, see our reverse mortgage overview.

Frequently asked questions

Sources

• HUD – How the HECM Program Works
• HUD – FHA announces 2026 loan limits
• Consumer Finance Monitor – HUD 2026 loan limits for FHA forward mortgages and HECMs
• CFPB – What will a reverse mortgage loan cost me?
• CFPB – What happens to my reverse mortgage when I die?
• CFPB – Study finds reverse mortgage advertisements can create false impressions
• HUD Office of Inspector General – HUD underestimated rising property charges for HECM borrowers (2026-KC-0003)
• HousingWire – Top HECM lenders, June 2026
• HousingWire – Mutual of Omaha explores potential mortgage division sale
• Finance of America – HomeSafe
• CNBC Select – Longbridge Financial reverse mortgage review

Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.