Finance of America Reverse Review

Comprehensive Finance of America Reverse Review

If you’re looking for a reverse mortgage, it’s probably because you need extra funds to pay for something like a home repair, medical bills or to pay off debt from a mortgage or credit cards. Maybe a financial advisor told you it would be a good part of your retirement planning. Whether your case is needing a lump sum of cash, tenure payments, a line of credit or some combination of each, a reverse mortgage from Finance of America Reverse could be the right choice for you.

Most (95%) of Finance of America Reverse’s loans are FHA-Insured insured Home Equity Conversion Mortgages (HECM), meaning they have built-in protections for the borrower. From that perspective, Finance of America Reverse offers a product similar to their competition.

But what makes this company stand out from other reverse mortgage companies is its customer service.

  • Customer service
  • 30 day typical closing time
  • Jumbo loan option
  • Licensed in 50 states and Puerto Rico

  • Proprietary product limited to 26 states

Finance of America Reverse Customer Service

Any HECM reverse mortgage requires borrowers to complete a compulsory consultation with a Housing and Urban Development (HUD) counselor. Nevertheless, a reverse mortgage can be difficult to understand. What we appreciate about Finance of America Reverse is their willingness to go above and beyond to make sure you understand the nuances of getting a reverse mortgage. Their licensed professionals have ample experience in their field and can talk with you through the process and answer any questions you might have.

Moreover, this is not a one-size-fits-all operation. The company will work with you to tailor your reverse mortgage to your specific needs. That means if you prefer to receive a significant portion of the funds up front, they will work with you to structure a lump sum. If you prefer to supplement your retirement income with additional line of credit payments, they will work with you to that end. They can also create a hybrid approach, such as a lump sum with a line of credit. While there are federally required limitations to the distribution of your funds, the team will work with you to any extent possible to reach your retirement planning goals.

Finance of America Reverse Products

The HECM reverse mortgage product is the most popular reverse mortgage product on the market because of its FHA-Insured insured non-recourse feature. In simple language, that means neither the borrower or the heirs will be personally liable to repay more than the home is worth at the time the loan is called due. Accordingly, HECM loans are the most popular reverse mortgage product at Finance of America Reverse. The company’s headquarters are in Tulsa, OK, but this product is available in all 50 states and in Puerto Rico. The HECM reverse mortgage is subject to a principal limit of $822,375, or the value of the home (whichever is less).

For borrowers that need a reverse mortgage product on a home beyond the HECM limit of $822,375, FAR offers a proprietary jumbo loan called the HomeSafe® reverse mortgage. This product often appeals to high net worth individuals, and will allow borrowers to access loan amounts of up to $4 million. Technically the HomeSafe® product is also a home equity conversion mortgage (HECM), but for the purpose of this guide HECM will refer only to the FHA-product and not the HomeSafe® loan.

Feature HECM HomeSafe®
Loan Value Less than $822,375 $822,375 – $4M
FHA Insured Yes No
Non-recourse Yes Yes
Interest Rate Type(s) Fixed or Variable Fixed
Lump Sum Optional Yes
Line of Credit Optional Yes
Tenure Payments Optional N/A

Unlike the HECM product, Finance of America Reverse’s HomeSafe® product is not FHA-Insured insured, but remains a non-recourse loan. As a benefit, the borrower doesn’t have to pay mortgage insurance premiums, which makes the total cost of the loan smaller than it would if it included mortgage insurance premiums.

Closing speed at Finance of America is typically 30 days, but could take longer depending on the borrower and the underwriting process.

While the mortgage industry, in general, is moving toward the future with completely online applications and other mortgage services, Finance of America Reverse is more traditional than some lenders. For instance, they still rely on using mail for parts of the application process. As a good first step, it seems the company is trying to incorporate some technology to simplify the process by offering e-signings on specific documents.

Finance of America Reverse Costs

Like other mortgages and reverse mortgages, there will be various costs for Finance of America Reverse borrowers. Closing costs will include origination fees and various other fees like title insurance or settlement fees.

As with all Lenders in the industry, Finance of America Reverse does charge closing costs, these costs are not always paid upfront or out of pocket by the borrower. In some cases, Lender credits are also given to lessen the amount of costs. Depending on your situation, you may be able to close the loan without any out-of-pocket fees. Mortgage insurance premiums will vary, depending on the value of the home. The other various fees (title insurance, etc.) are also commonly charged in the industry. All fees and charges for Reverse Mortgages are dependent on many variables of the loan.

Interest on the Finance of America Reverse mortgage can be either fixed rate or variable rate – depending on the borrower’s preferences. Your decision for interest type (fixed vs. variable rate) will have an impact on the timing and amount of the funds you receive. There are advantages and disadvantages to each option, so you should consult with your financial advisor or a loan officer at Finance of America Reverse for answers on which interest type is best for you.

reverse mortgage application

Reverse Mortgage Application. Source: Getty

Eligibility for a Reverse Mortgage at Finance of America Reverse

While the loan is secured by the home, there are some general requirements for a reverse mortgage that apply at Finance of America Reverse. First, the borrower must be at least 62 years old. Second, they must own the home and use it a primary residence. While they do not have specific credit score requirements for borrowers, applicants need to pass a financial assessment in order to receive a loan. The financial assessment looks at credit history, property tax history, monthly residual income and other financial metrics as needed.

What consumers say about Finance of America Reverse

Reading reviews from Finance of America Customers on ConsumerAffairs, you’ll frequently see words like “knowledgeable” and “helpful,” even “fabulous.” The average rating for the company is 4.6/5.0 stars on a popular review site with more than 1,000 consumer reviews. Criticisms about the company from unhappy customers were about unexpected closing times or limits to the amount of reverse mortgage funds available.

What exactly is the entire process of getting a reverse mortgage at Finance of America Reverse?

Once you’ve decided to contact Finance of America Reverse about a reverse mortgage, there are five steps that will happen before you can finalize the reverse mortgage and gain access to funds. This process typically takes about 30 days:

  1. Education

    After receiving your contact information, the company will contact you to assess your needs, your situation and answer your initial questions. If you are still interested in moving forward, they will prepare you for a federally-required independent counseling session.

  2. Independent Counseling

    A HUD (Housing and Urban Development) approved reverse mortgage counselor will contact you to make sure you understand all the aspects of a reverse mortgage. The session typically lasts 60-90 minutes and is conducted either over the phone or face to face. You will receive a certificate demonstrating that you have completed counseling. If you decide to proceed with the loan, you will move to the application phase.

  3. Application

    A loan officer from Finance of America Reverse will contact you to begin the formal application. You will work to gather the required documents, which include tax returns, bank statements and identification and your reverse mortgage counseling certificate. A notary will come to your home to collect these documents and your signature.

  4. Processing approval

    A Finance of America Reverse mortgage specialist will work with a vendor to complete a home appraisal and review your application. An underwriter will review all the application materials and determine your eligibility for a loan.

  5. Closing

    If your application is approved, you will work again with a loan specialist to schedule closing and complete the required paperwork. Once closing has taken place, you’ll have access to your funds.

Finance of America Reverse Product-related Q&A

  • Do I need an appraisal on my house?

    Yes. You do need a home appraisal. This is part of the processing approval phase of the application process.

  • Will I still have to pay my property taxes and/or homeowner’s insurance?

    Yes. Finance of America Reverse can set aside part of your reverse mortgage for estimated property taxes and insurance premiums. Talk to your loan officer about the option if you think you’ll need assistance.

  • What are their credentials? Are they part of any trade organizations?

    The company a registered mortgage company and is NMLS #2285. Finance of America Reverse is part of the National Reverse Mortgage Lenders Association, and is rated A+ by the Better Business Bureau.

  • Does Finance of America Reverse have a good business record?

    NMLS Consumer Access has only three records related to Finance of America Reverse. One of the records was about the company filing a required report one day late in Oklahoma. The other two records were from 2012 and related to employees operating without proper licensure in Arkansas and Kentucky.

  • Does my spouse need to be listed?

    No. However, it may be best for you to list your spouse if he/she is eligible. Check out the tips for a wise buyer in our reverse mortgage buyers guide.

  • How much equity do I need to have?

    You will need some equity to be qualified, but there is no exact answer to this question. Contact a reverse mortgage advisor for a better estimate based on your situation.

  • Do I need good credit?

    Not necessarily. Finance of America will conduct a financial assessment to determine your eligibility for the reverse mortgage.

  • Do I have to be a specific age?

    Yes – 62 or older. For FAR’s proprietary product, HomeSafe ®, the minimum age is 60 except in Texas and Utah where it is 62.


Considering the complexity of the reverse mortgage products on the market, it’s important to find a reverse mortgage lender that you can trust. Finance of America Reverse seems to set the standard for knowledge and customer service. If you are interested in one of Finance of America Reverse’s products you can call 844-587-3377 or use their online contact form.

Finance of America Reverse Reviews

Recent Reviews

Featured Review
November 08 2018 2:22AM

My husband and I just did a HCEM with Finance of America Reverse. I was nervous in the beginning but Mr. Sherman ** took all my anxiety away. He explained everything. I had just a few simple things to provide to him. He was kind and patient throughout the entire process. My husband became ill right when we were to close and he was hospitalized. They had their agent come to the hospital because we were so anxious to get it closed. I just cannot say enough. Sherman made this so easy because he did all the work and did all he could to accommodate us and make this easy. If anyone is thinking of doing a reverse mortgage or HCEM, I would definitely call them and if you're lucky you will get to work with Sherman **. He is top notch.

Donna B.
October 10 2020 1:00PM

I started the process of getting a reverse mortgage back in April. Sent in all the paper work only to be told I did not fill them out right, being a co-power of attorney with my husband's cousin she also had to fill out papers, we both filled out tons of paper work.

Had to sit through a stupid counseling phone call, send and resend bank statements, Dr's notes, more paper work after 7 months we had it, this company does not deserve a 5 star rating. Very over rated company.

They should have had a check off list for everything they needed and go over my paper work with a fine tooth comb, not calling every day for something else. Wasted 7 months of my time and running around and got nothing out of it.

Should have gone to a bank in the first place. Do not use this company. Don't know which end is up and the underwriters are the worst.

Connie R.
Greenwich, CT
August 29 2019 12:35AM

We submitted documents as requested in May, nothing done & in August still waiting, finally we were told underwriting needed more papers , & we then went to another lender & closing in 3 weeks. We found them very unprofessional & were very unhappy

Jack R.
August 18 2019 5:15PM

I have been dealing with this company for exactly two months today. I have provided every piece of information that has been asked for. I was told by the agent I have been dealing with that he thought he had good news for me, but he wanted to verify it. He then went on vacation for a week and upon return he said that he would have information for me the next day. I am still waiting and I am getting tired of the carrot dangling in front of my nose. I asked the agent if I should investigate any of the other myriad offers that I get, and he said that I should not. I fear that I will need to start over again with another company.

Richard H.
Cleveland Heights, OH
January 07 2019 8:07PM

Spent many hours on the phone, tons of emails (including the 93 page loan app review) only to complete the whole process including a the silly "HEMC counseling session" inquiry hits on both our credit scores only to have them tell us they can't find a home appraiser in our area (really) so the deal is dead. Complete waste of time and Money!

Michael F.
November 06 2018 4:09AM

In June 2017, I began my struggle to get a reverse mortgage through Finance of America Reverse. Although I have a good job and great credit, my condo complex needed FHA approval. After pushing them for more than a year (and hundreds of documents), Finance of America Reverse could not do it. But less than a month after Finance of America Reverse gave up, I was contacted by All Reverse Mortgage who set me up with a jumbo reverse mortgage without FHA approval needed. I closed in under two months. Finance of America Reverse could not/did not think outside the FHA box.

Karen K.
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