
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
With a reverse mortgage from AAG, you can eliminate your monthly mortgage payment. As long as you stay current with your property taxes, homeowner’s insurance and maintenance costs, you’re allowed to live in your home mortgage-free for the length you decide.
Not available in: DE, FL, GA, MA, OH, RI
State availability
Loan products offered | Term reverse mortgage, Tenure reverse mortgage, Lump-sum payout, Growing line of credit, Jumbo reverse mortgage, Reverse for purchase |
---|---|
State availability | Not available in: DE, FL, GA, MA, OH, RI |
NMLS # | 9392 |
Review by
Kat Aoki is a personal finance writer at Finder who specializes in breaking down what you need to know before taking out a loan — from the best mortgage providers by state to how to get the lowest rate on a debt consolidation loan. And she’s no stranger to personal finance. Since 2011, she’s written hundreds of thoughtful, informative articles to help consumers make better decisions on their home loans, credit cards, insurance policies and more. Kat is also well-versed in working with leading brands in the real estate, mortgage and personal finance industries, including Amex, Citibank, GE Money and RealEstate.com.au, among others. She holds a BS in Business Administration and Marketing from California State University and enjoys travel and hiking in her spare time.
AAG is best geared towards retired homeowners considering a reverse mortgage and are looking for in-person support. Depending on the amount of equity in your home and the type of reverse mortgage you choose, you could stop paying mortgage payments altogether. But if you’re looking to apply online or need a traditional mortgage or refinance, you’ll want to look elsewhere.
AAG Reverse Mortgage is not currently available on Finder
Have you considered Rocket Mortgage?
Apply online for free and lock in your rate for 90 days.
To qualify for a reverse mortgage with AAG, you must meet a series of personal and property requirements. You’ll also need to complete an information session with a HUD-approved counselor.
Personal requirements | Property requirements |
---|---|
|
|
In addition to the above requirements, you must also:
To apply for a reverse mortgage, you’ll need to provide:
If you don’t have the cash to cover fees up front, you may be able to roll them into your total loan amount. Fees will vary depending on your property value and the type of reverse mortgage you choose, so it’s important to discuss which fees will apply and how much they’ll cost before signing any paperwork.
AAG’s reverse mortgage fees depend on your circumstances, but could include:
Go to AAG’s website and request an information kit based on your personal circumstances. Once you know you’re eligible to apply, your kit will include personalized information to guide you through the steps of the process:
Reverse mortgages typically become due when you die. Your heirs are given six months to repay the loan or agree to sell the home. If your home is sold, proceeds from the sale are used to repay the amount you borrowed, and any remaining profit goes to your heirs.
Your loan also becomes due if you sell your home, no longer use it as your primary residence, neglect to pay the insurance or taxes on time or don’t otherwise meet the terms of your reverse mortgage. Proceeds from the sale of your home are then used to pay off the loan.
AAG offers several types of reverse mortgages that let you borrow against the equity in your home. You can use the money to pay off other debts or supplement your retirement, though you’ll need to keep up with property taxes and insurance.
In many cases, you may be able to stop paying mortgage payments — but it depends on how much equity you have in the home and what type of reverse mortgage you choose.
A home equity conversion mortgage (HECM) is the only type of reverse mortgage that is both approved by the FHA and HUD and insured by the federal government. But that still doesn’t make it risk-free. Like other types of reverse mortgages, you can lose your home if you don’t continue to pay your property taxes and home insurance on a HECM. In some cases, even being late on your payments can put your home at risk.
Also be advised that in 2016, AAG paid a $400,000 penalty after the Consumer Financial Protection Bureau alleged that it falsely advertised its products as too safe, claiming that customers would have no monthly payments and couldn’t lose their homes.
If you’re interested in a reverse mortgage, read the fine print carefully and consider hiring a lawyer to go over the contract and explain any important fine print.
Like other lenders offering reverse mortgages, you’ll need to contact AAG to request an information kit to get started. But even with information in hand, you need to be cautious.
In 2016, the Consumer Financial Protection Bureau (CFPB) took action against AAG, Reverse Mortgage Solutions and Aegean Financial for deceptive advertising, suggesting to consumers they couldn’t lose their homes. And in 2020, Urban Financial Group (acquired by Finance of America) was found guilty of underwriting hundreds of loans that didn’t meet the US Department of Housing and Urban Development requirements.
Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.
As of July 2022, the company was accredited by the Better Business Bureau (BBB) with a B+ rating. There have been 93 complaints registered in the last three years, and of these complaints, 44 were closed in the last 12 months. AAG has a 4.5 out of 5 rating from 4,673 reviews on Trustpilot, with 68% rating the company “excellent” and another 16% calling it “great.”
Positive reviews mention personable and professional service, a transparent application process and the relief of not having to make a mortgage payment. Negative reviews mention the process taking longer than expected and a lack of communication from AAG.
Founded in 2004, American Advisors Group, known more commonly as AAG, is among the largest and most advertised mortgage lenders in the US. It’s licensed in 45 states and specializes in home equity conversion mortgages designed for seniors.
AAG strives for personalized service to help you understand the benefits and risks of this unconventional type of loan. For borrowers wanting more information, the AAG site allows you to enter details about your circumstances for a targeted information kit.
AAG Reverse Mortgage is not currently available on Finder
Have you considered Rocket Mortgage?
Apply online for free and lock in your rate for 90 days.