Omaha seniors make up 12 percent of the city’s population. Many live on a fixed income and could benefit from a reverse mortgage to supplement finances in retirement. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Omaha to help you determine if a reverse mortgage is a financially practical solution.
Thousands of Americans have financially benefitted from a reverse mortgage. A reverse mortgage allows homeowners to convert home equity into cash and continue to live at the property. Borrowers receive tax-free cash as either a lump sum or in regular payments. And unlike home equity borrowing, a reverse mortgage loan isn’t repayable until death or the borrower moves.
With a reverse mortgage in Omaha, homeowners pay off debts, finance monthly expenses or make home improvements. Many of the city’s seniors, maintaining residences in the neighborhoods of Field Club, Dundee, Regency, Florence and Bellevue, are taking advantage of rising home values to qualify. Over the past year, Omaha homes have appreciated by over seven percent, according to Zillow.
There are several different types of reverse mortgages. The most common is the Home Equity Conversion Mortgage (HECM), which is federally insured, but there are also privately funded companies that allow you to borrow more for higher-valued homes.
In general, homeowners must meet these requirements for a reverse mortgage in Omaha:
Be at least 62 years old
Own property outright or have most of their mortgage paid off
Occupy the home as a primary residence
Be able to pay property taxes and insurance
Attend a reverse mortgage counseling session (for HECM only)
Keep in mind that a reverse mortgage is a loan that eventually has to be paid back. Over the life of the loan, there will be interest charges and other costs, like origination and servicing fees. Because of the effects on estate planning, many borrowers consult with their families before taking out a reverse mortgage in Omaha.
As with any loan, be sure to get all answers to any questions you might have before signing paperwork. The Consumer Financial Protection Bureau has a list of FAQs for your benefit.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Omaha, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.
Peoples Mortgage Company
Peoples Mortgage Company is a national lender with two branches in Omaha to help homeowners obtain a reverse mortgage. Peoples is customer-focused, striving to make borrowing simple and straightforward. Loan officers keep customers informed at each phase, from application to closing. The company is Better Business Bureau-accredited with an A+ rating. Omahans recommend Peoples to anyone looking for a reputable lender.
Pivot Lending Group
Pivot Lending Group is mortgage lender operating in several states, including locally in Omaha. Financing experts are standing by to discuss reverse mortgage options. Customers can start by visiting the Knowledge Center on the company’s website to get answers to commonly asked questions. According to reviewers, working with Pivot Lending Group is a stress-free experience. The company is Better-Business Bureau accredited with an A+ rating.