Finding an Approved Reverse Mortgage Lender
There are many reverse mortgage lenders marketing themselves to senior homeowners. All one has to do is turn on the television during typical business working hours and to see commercial after commercial targeted to retired homeowners.
Because of the recent surge in reverse mortgage loan popularity, many seniors are jumping on the reverse mortgage bandwagon. This is not a bad thing. In fact, reverse home mortgages are advantageous because all loan payments are deferred as long as the property remains the borrower’s primary residence. There is absolutely no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property (for example, to move into an assisted-living facility).
Despite these advantages, there are many unscrupulous lenders out there waiting to prey on unsuspecting senior homeowners. Potential borrowers can avoid being taken advantage of by doing their research before applying for a reverse equity mortgage. One way to ensure success and satisfaction with a reverse mortgage is to borrow only from a HUD, (U.S. Department of Housing and Urban Development) approved reverse mortgage lender.
Interested homeowners can find many resources online that list HUD-approved lenders. One good site is www.reversemortgagepage.com, which has an easy-to-use interactive map that lists approved reverse mortgage lenders by state.
Top Lenders
Another good way to find a government-approved lender is to know which reverse mortgage lenders are most successful and have the highest success rates. The following is a list of the top 10 reverse mortgage lenders of 2008, based on volume:
1. Wells Fargo Bank NA
2. Financial Freedom Senior Fund
3. Countrywide Bank FSB
4. World Alliance Financial Corp
5. Omni Home Financing Inc
6. First Mariner Bank
7. Liberty Reverse Mortgage Inc.
8. Bank of America NA Charlotte
9. Everbank Reverse Mortgage LLC
10. Urban Financial Group
Of course, this list does not mean that these are the best institutions with whom to obtain a reverse home mortgage, only the most popular. The list and the website are only intended as springboards for the educated consumer.