Reverse Mortgages: How to Qualify, What to Expect, and How to Find the Right Lender
For many older homeowners, a reverse mortgage offers a way to stay financially comfortable during retirement, without the stress of monthly loan payments. Whether you’re facing rising living expenses, health costs, or simply want to free up cash, a reverse mortgage can provide flexible access to home equity.
To qualify, you must be at least 62 years old, own your home (or have significant equity), and live in it as your primary residence. Married couples can both be on the loan, as long as both meet the age requirement. Once qualified, borrowers can choose how they receive the funds—through a lump sum, monthly installments, a line of credit, or even to help purchase a new home.
Loan amounts vary depending on the age of the youngest borrower, the home’s value, current interest rates, and the available equity. Generally, the older you are and the more equity you have, the more money you’ll qualify to receive.
Once you’ve learned the basics, the next step is finding a lender you can trust.
Finding a Reverse Mortgage Lender
Reverse mortgage lenders are everywhere, on TV, in your mailbox, online, and on the radio. But not all sources are created equal. While some are reputable, others can be misleading or, in rare cases, outright scams.
Start by asking around. Your bank, financial planner, or retirement advisor may have trusted recommendations. You can also speak with friends or neighbors who’ve used a reverse mortgage themselves. Community resources like your local Chamber of Commerce or the Better Business Bureau (BBB) can also help point you in the right direction.
What to Look for in a Lender
A trustworthy reverse mortgage lender will take time to explain your options clearly and patiently. Be cautious of anyone who seems rushed, evasive, or too focused on selling. A reputable lender will have ties to your community and work with a network of professionals, including HUD-approved counselors and financial advisors.
Look for lenders who are members of the National Reverse Mortgage Lenders Association (NRMLA). NRMLA members must follow a strict code of ethics and maintain high industry standards. It’s also wise to choose a lender that’s in good standing with the Better Business Bureau—you can even check for past complaints.
Trust Your Instincts
Credentials are important, but so is your comfort level. Even if a lender checks all the boxes on paper, they may not be the right fit for you. If your questions aren’t being fully answered, or something doesn’t feel right, it’s perfectly okay to walk away and find someone else.
Choosing a reverse mortgage is a big decision. Take your time, ask the right questions, and make sure you’re working with someone who puts your best interests first.
Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range. Click here to contact them and learn if reverse mortgage is right for you.