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Find the Best Reverse Mortgages in Richmond, VA

Reverse mortgages can be attractive to older people in Richmond who need money but don’t want to make monthly payments on a loan. The Richmond Times-Dispatch has partnered with ConsumerAffairs to create this guide by comparing the reviews and products of 30 businesses and choosing seven favorites from top reverse mortgage companies in Richmond.

Companies pay ConsumerAffairs to be authorized, and the Richmond Times-Dispatch and/or ConsumerAffairs may receive compensation when you click a link, call a number or fill out a form on this site.

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Different types of reverse mortgages in Richmond

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Richmond residents often take out reverse mortgages to supplement their income, make home improvements or take care of medical bills. According to Zillow, the average home in Richmond is worth around $250,000, giving residents access to significant home equity.

If you're considering a reverse mortgage:

  1. Calculate how much money you need
  2. Determine how much your home is worth
  3. Find the right type of reverse mortgage
  4. Compare costs and fees for different mortgage companies

There are a number of different reverse mortgages available in Richmond, including:

  • Single-purpose reverse mortgages: This type of reverse mortgage is often the least expensive option, but the lender stipulates the use of the money. For example, the lender may state that the borrowed funds need to go towards home repairs. Single-purpose reverse mortgages are suitable for low- or moderate-income borrowers that need funds for a specific project or payment.
  • Home Equity Conversion Mortgages: HECMs are backed by the Federal Housing Administration, and the funds they provide can be used for any purpose. The upfront costs for these loans can be high, but they usually don’t have an income requirement. The maximum amount that you can borrow with an HECM is $765,600 at the time of publishing, according to limits set by the U.S. Department of Housing and Urban Development.
  • Jumbo reverse mortgages: Also called proprietary reverse mortgages, these loans are backed by private lenders who offer more than the HUD maximum, sometimes up to several millions of dollars for those who qualify. The interest rates tend to be lower with jumbo reverse mortgage loans, but the total loan and payback amounts are much higher than average. This type of loan is an option for those with high-value homes in neighborhoods like Wilton or Windsor Farms.

Richmond’s reverse mortgage requirements

According to HUD, Richmond residents who want a reverse mortgage must:

  • Be at least 62 years old
  • Own their property or have a significant amount already paid
  • Live at the property as their primary residence
  • Partake in a consumer information session hosted by a HECM counselor
  • Have no delinquency on federal debt
  • Have the financial resources to pay property taxes and property insurance

Upon receiving your application, the lender should also do a credit check and verify that you make timely payments for flood insurance premiums and real estate taxes.

Properties must be one of the following:

  • A single-family or two- to four-unit home occupied by the borrower
  • A HUD-approved condominium project
  • An FHA-approved condominium or manufactured home

After your application is approved and you can start receiving funds, you may be able to choose how often you receive the funds. Your options include:

  • A lump-sum payment: With a lump sum, you receive all funds at once as a single disbursement. Of all the options, it’s the only one that has a fixed interest rate. People commonly use lump-sum payments with HECMs to buy new homes.
  • Monthly payments: With this option, you receive monthly installments from the lender. Tenure payments allow you to receive funds as long as you live in the house, but term payments let you receive them for a set amount of time, usually between five and 10 years.
  • A line of credit: Rather than receiving payments monthly or in full, you can take funds from a line of credit as you need them. A line of credit does not immediately gather interest you have to repay, but as funds are withdrawn, they do accumulate interest.
  • A combination: Some lenders allow you to combine the dispersal methods above. For instance, you can enter into a term payment agreement along with getting access to a line of credit. This means you could receive fixed monthly payments for a period determined upfront, then receive more money through a line of credit if you need it after the term.

Richmond reverse mortgage FAQ

Do you need good credit to get a reverse mortgage in Richmond?

There is no minimum credit score requirement to obtain a reverse mortgage in Richmond. However, lenders may look at your credit history to determine your ability to pay your taxes, property insurance, and any fees or interest.

How does a reverse mortgage work in Richmond?

Homeowners in Richmond can use a reverse mortgage to convert a portion of their home equity into cash. Borrowers receive funds from lenders, and, if they have a mortgage balance, use a portion of these funds to pay off their existing mortgage. The final loan balance is due after the borrower passes away, moves out or fails to meet the requirements to keep their reverse mortgage.

What is the downside to a reverse mortgage in Richmond?

The more home equity you use in your reverse mortgage, the less there is to leave to your heirs or take with you should you sell the house. Also, like any loan, interest increases the total cost of the loan over time, and reverse mortgage fees can be higher than those accompanying traditional loans.

How does a reverse mortgage get paid back?

Reverse mortgages are usually repaid in a lump sum at loan maturity, which can be when the borrower sells the house, passes away or permanently leaves the home. It can also become due if the borrower neglects the house or fails to pay real estate taxes. If the borrower cannot pay, the lender has the right to seize their property.

Richmond reverse mortgage lender information

Finance of America Reverse

Finance of America Reverse lets you choose between a HECM and a HomeSafe Loan, which comes with higher limits than government-insured HECMs. Finance of America Reverse is a member of the National Reverse Mortgage Lenders Association.

Finance of America Reverse

Liberty Reverse Mortgage

Besides specializing in HECMs, Liberty Reverse Mortgage also offers HECMs for purchase and jumbo reverse mortgage loans. After the initial application, clients go through the appraisal and closing stages. Liberty Reverse Mortgage offers an Iron Clad Guarantee that includes price matching and closings in under 60 days.

Liberty Reverse Mortgage

American Advisors Group

At American Advisors Group, Richmond residents can select between HECMs, HECMs for purchase and jumbo reverse mortgages. The company dispenses funds as a lump sum, a line of credit, or term or tenure monthly payments.

American Advisors Group Learn More

Reverse Mortgage Pro

Reverse Mortgage Pro specializes in HECMs. The company provides a free assessment that yields results quickly so you know if you qualify. Reverse Mortgage Pro has a branch in Richmond, but its consultants communicate with clients via phone and email.

Reverse Mortgage Pro

1st Nations Mortgage

1st Nations Mortgage offers HECMs through an online application process. The company doesn’t make any restrictions on how borrowers can use their funds, and it conducts consultations over the phone and email. Its mailing address is 720 Moorefield Park Drive, Ste. 101, Richmond, VA 23236.

1st Nations Mortgage

Professional Mortgage Corp.

Professional Mortgage Corp. lets you fill out a brief form on its website to start the application process for a HECM. You can obtain a quote via an online form, but the company also has consultants available in person and via phone and email. Professional Mortgage Corp. is located at 1311 High Point Ave., Richmond, VA 23230.

Professional Mortgage Corp.

TowneBank Mortgage

TowneBank Mortgage offers jumbo reverse mortgage loans and HECMs. You can apply and upload all relevant documents via its mobile app and have consultants contact you. The company has two branches near Richmond. One is at 4501 Cox Road, Glen Allen, VA 23060, and the other is at 800 E. Canal St., Richmond, VA 23219.

TowneBank Mortgage