Biggest Reverse Mortgage Lenders in Connecticut

A reverse mortgage is a unique product that allows Connecticut seniors to convert home equity into cash. Most older homeowners have substantial equity, the result of years of paying down a conventional forward home loan. The most popular version of the reverse mortgage is, by far, the home equity conversion mortgage, also known as the HECM. It is the only one of its kind insured by the United States government through the Federal Housing Administration (FHA).

We’ve put together this guide for CT seniors considering a reverse mortgage. We’ve also provided data on top lenders, average interest rates, and local counselors and HUD offices.

Want to learn more? Click here to get free information about a reverse mortgage!

Find Out if You Qualify

Unlike the conventional mortgages you’re likely familiar with, there are not many qualifications for the HECM program. In short, as a Connecticut senior you must:

  • Be 62 years old or older
  • Either own your home or have a small mortgage balance that you can pay off using the proceeds of your HECM loan
  • Use the home as your primary residence

The FHA also requires that you undergo a basic financial assessment and receive counseling prior to taking out the loan. The financial assessment is to make sure that you are able to continue paying homeowner’s insurance, property taxes, and any applicable Homeowner’s Association (HOA) fees. This is to help minimize the risk of what is known as a T&I (taxes and insurance) foreclosure. The counseling is designed to make sure you understand the loan you’re about to take out and are aware of other, possibly more attractive options that are available to you.

Is a Reverse Mortgage Different than a Home Equity Loan?

Yes, these are different financial products. The biggest differences are that it is more difficult to qualify for a home equity loan or home equity line of credit (HELOC), and these loans require you to make monthly payments. The HECM program, on the other hand, does not have these stringent income requirements.

In general, home equity loans or HELOCs are better for short-term needs, while reverse mortgages are better suited to a longer time horizon.

Want to learn more? Click here to get free information about a reverse mortgage!

Can I Lose My Home?

As long as you continue to maintain your obligations – pay your taxes and insurance, maintain the home – you are allowed to keep your home, so long as it continues to be used as your primary residence. However, it is important to note that if you move out of the house for 12 months the reverse mortgage becomes due. You should know this going in, as sometimes seniors are forced to move to unforeseen reasons, such as a need for around the clock care.

Can I Leave My House to my Heirs?

It depends. Your reverse mortgage is due when you move out of the home or pass away. At that point, you or your estate must settle the loan, either by repaying the balance or selling the house to repay the balance. You also have the option of repaying your HECM loan at any time.

How Much am I Eligible to Receive?

Your proceeds will vary based on your age (older CT residents receive more), interest rates (lower rates mean more borrowing power), and home value (higher value means more proceeds).

Who are the Biggest Lenders in CT?

Prior to 2012, large institutions such as Webster Bank, Wells Fargo, and MetLife originated most reverse mortgages in Connecticut. Today, however, these institutions have stepped away from the HECM program and the top lenders are companies such as American Advisors Group. Here is some data on the top lenders of the past and present:

All Time

Lender Loans Total Principal Limit
WEBSTER BANK 2344 516252511
WELLS FARGO 1722 463070448
AMSTON MORTGAGE 1322 254722948
FINANCIAL FREEDOM SENIOR FUNDING CORP 572 141020240
BANK OF AMERICA 479 140308340
METLIFE BANK NATIONAL ASSOCIATION 432 133373225
CAMPBELL FINANCIAL SERVICES 415 99531916
AMERICAN ADVISORS GROUP 383 106480540
EVERBANK REVERSE MORTGAGE LLC 363 77781199
BCI FINANCIAL MORTGAGE CORP 352 83906472
REVERSE MORTGAGE SOLUTIONS INC 349 106008146
TRAVIS MORTGAGE LLC 328 80770182
ONE REVERSE MORTGAGE LLC 325 85860500
FAIRFIELD COUNTY BANK 296 98408175
GENERATION MORTGAGE COMPANY 238 66826750
LIBERTY BANK 228 59210950
CONTINENTAL FUNDING CORP 227 53418081
FREEDOM CHOICE MORTGAGE 194 27784597
WORLD ALLIANCE FINANCIAL CORP. 194 52023959
BCI FINANCIAL MORTGAGE CORPORATION 179 42706300

Since 2012

Lender Loans Total Principal Limit
REVERSE MORTGAGE SOLUTIONS INC 349 106008146
AMERICAN ADVISORS GROUP 325 87957000
ONE REVERSE MORTGAGE LLC 181 49526000
SYNERGY ONE LENDING INC. 118 36267500
BCI FINANCIAL MORTGAGE CORPORATION 111 25686800
CAMPBELL FINANCIAL SERVICES INC 85 19460900
SECURITY ONE LENDING 76 22807000
LIBERTY HOME EQUITY SOLUTIONS INC 73 19560000
IREVERSE HOME LOANS LLC 59 13412900
THE GUILFORD SAVINGS BANK 56 19721500

Connecticut Reverse Mortgage Rates

Here are monthly averages for Connecticut calculated using data published by the US Department of Housing and Urban Development. NA, or non-applicable, is used when there were no fixed rate HECM loans originated in a given month.

Date Fixed Rate Adjustable Rate
08/01/14 5.06% 2.59%
09/01/14 5.05% 2.60%
10/01/14 4.95% 2.57%
11/01/14 5.06% 2.64%
12/01/14 5.04% 2.78%
01/01/15 5.06% 2.65%
02/01/15 5.05% 2.79%
03/01/15 4.90% 2.80%
04/01/15 4.68% 3.14%
05/01/15 5.06% 3.02%
06/01/15 NA 3.12%
07/01/15 4.87% 3.27%
08/01/15 4.94% 3.15%
09/01/15 5.00% 3.31%
10/01/15 4.90% 3.22%
11/01/15 NA 3.38%
12/01/15 5.05% 3.38%
01/01/16 NA 3.59%
02/01/16 5.06% 3.69%
03/01/16 4.78% 3.66%
04/01/16 5.06% 3.80%
05/01/16 5.06% 3.86%
06/01/16 5.06% 3.96%
07/01/16 5.06% 3.97%
08/01/16 5.06% 4.09%
09/01/16 5.06% 4.22%
10/01/16 4.50% 4.42%
11/01/16 5.06% 4.48%
12/01/16 NA 4.21%
01/01/17 5.06% 4.48%
02/01/17 4.93% 4.53%

HECM Counselors

MONEY MANAGEMENT INTERNATIONAL EAST BERLIN
1224 MILL ST BLDG OFFICE12
EAST BERLIN, CT 06023-1159
(866) 232-9080
http://www.moneymanagement.org

NEIGHBORHOOD HOUSING SERVICES OF NEW HAVEN
333 SHERMAN AVE
NEW HAVEN, CT 06511-3107
(203) 562-0598
http://www.nhsofnewhaven.org

NEIGHBORHOOD HOUSING SERVICES OF WATERBURY, INC.
161 N MAIN ST
WATERBURY, CT 06702-1445
(203) 753-1896
http://www.nhswaterbury.org

HUD Offices

Hartford Field Office
One Corporate Center
20 Church Street, 10th Floor
Hartford, CT 06103-3220

Hours: 8am-4:30pm, Monday-Friday

Phone: (860) 240-4800
Email: ct_webmanager@hud.gov

Jurisdiction: State of Connecticut