Recent census data show that the state of Pennsylvania is home to around 2 million senior citizens. In fact, citizens 65 and older make up nearly 16% of the state’s population. As with other states, seniors in PA can take advantage of reverse mortgage deals to take care of uncertain social security payments, declining pensions and rising medical costs.
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These loans have gained in popularity since the US Department of Housing and Urban Development, better known as HUD, created the Home Equity Conversion Mortgage (HECM) program in the 1980s. Although it’s not the right answer for everyone, the HECM program offers seniors the option to tap into the equity in their homes and withdraw it either in lump sum, monthly payments or as a line of credit (or some combination of the three). The proceeds can be used for home improvement, to supplement social security income, meet unexpected medical expenses, and even pay for travel. In short, the homeowner can spend the money however he or she sees fit.
HECM Rules in PA
The idea for reverse mortgage stems from the simple fact that a home accumulates equity over years as the homeowner pays off his or her home loan. For many Americans, this equity represents a majority of total wealth. Rather than being forced to sell their homes, seniors can gain access to this equity, for a fee, and continue to age in place.
Is a PA Reverse Mortgage Right for You?
The qualifications for a HECM loan are straight forward:
- The youngest borrower must be at least 62 years of age
- You must own the home free and clear or have a mortgage balance small enough that you can pay it off from the proceeds
- The home must be your primary residence
The FHA further mandates that a borrower attend counseling and undergo a financial assessment to make sure that basic obligations – insurance and taxes – can still be met.
Most single-family homes or a two-to-four unit property in Pennsylvania qualify for a reverse mortgage. The borrower must show that they intend to use that property as their primary residence. On the other hand, mobile homes, townhouses, detached homes, units in condominiums and some manufactured homes are ineligible unless by special loan arrangement.
Top Reverse Mortgage Lenders in Pennsylvania
In the beginning, the top HECM companies in the state were large banks such as Wells Fargo. However, these lenders exited the business in 2012, and since then the industry has been dominated by smaller companies that special in reverse mortgages. Below, we’ve broken down the largest originators of all time and those who have gained in market share since 2012.
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All Time
| Lender | Loans | Total Principal Limit |
| WELLS FARGO | 4,327 | 803,960,143 |
| AMERICAN ADVISORS GROUP | 4,078 | 833,245,180 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 2,280 | 351,542,648 |
| M AND T BANK | 1,871 | 308,258,585 |
| ONE REVERSE MORTGAGE LLC | 1,766 | 291,584,350 |
| METLIFE BANK NATIONAL ASSOCIATION | 1,121 | 213,363,750 |
| NET EQUITY FINANCIAL INC | 1,085 | 163,181,585 |
| SEATTLE MORTGAGE COMPANY | 948 | 154,683,123 |
| FINANCE OF AMERICA REVERSE LLC | 914 | 217,484,155 |
| WORLD ALLIANCE FINANCIAL CORP. | 733 | 118,788,126 |
| UNITY MORTGAGE CORP | 699 | 59,238,154 |
| REVERSE MORTGAGE FUNDING LLC | 608 | 185,483,712 |
| BANK OF AMERICA | 575 | 113,478,236 |
| GATEWAY FUNDING DIVERSIFIED MTG SRVS LP | 559 | 125,986,565 |
| AAKO INC | 523 | 69,840,967 |
| CARDINAL FINANCIAL COMPANY | 476 | 89,393,094 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 454 | 77,557,350 |
| REVERSE MORTGAGE SOLUTIONS INC | 440 | 88,133,870 |
| FULTON BANK NATIONAL ASSOCIATION | 432 | 79,983,060 |
| DOLLAR BANK FSB | 415 | 75,529,236 |
Since 2012
| Lender | Loans | Total Principal Limit |
| AMERICAN ADVISORS GROUP | 3,813 | 788,949,267 |
| ONE REVERSE MORTGAGE LLC | 1,059 | 179,068,650 |
| FINANCE OF AMERICA REVERSE LLC | 802 | 200,537,055 |
| REVERSE MORTGAGE FUNDING LLC | 608 | 185,483,712 |
| M AND T BANK | 496 | 91,475,822 |
| REVERSE MORTGAGE SOLUTIONS INC | 440 | 88,133,870 |
| NET EQUITY FINANCIAL INC | 437 | 68,348,900 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 412 | 70,709,350 |
| MUTUAL OF OMAHA MORTGAGE INC. | 399 | 128,866,502 |
| DOLLAR BANK FSB | 307 | 55,703,900 |
PA Interest Rates
Here are the average fixed and adjustable interest rates on HECM loans based on data published by the US Department of Housing and Urban Development:
Current Rates
| Date | Fixed Rate | Adjustable Rate |
| 2019-01-01 | 4.87% | 5.28% |
| 2019-02-01 | 4.82% | 5.14% |
| 2019-03-01 | 4.62% | 5.00% |
| 2019-04-01 | 5.06% | 4.90% |
| 2019-05-01 | 4.25% | 4.81% |
| 2019-06-01 | 4.99% | 4.83% |
| 2019-07-01 | 4.56% | 4.60% |
| 2019-08-01 | 5.81% | 4.51% |
| 2019-09-01 | NA | 4.44% |
| 2019-10-01 | NA | 4.58% |
| 2019-11-01 | 5.06% | 4.38% |
| 2019-12-01 | NA | 4.20% |
| 2020-01-01 | NA | 4.28% |
| 2020-02-01 | 5.06% | 4.22% |
| 2020-03-01 | NA | 4.01% |
| 2020-04-01 | NA | 3.92% |
| 2020-05-01 | NA | 3.85% |
| 2020-06-01 | 3.93% | 3.59% |
| 2020-07-01 | 3.43% | 3.45% |
| 2020-08-01 | 3.43% | 3.35% |
| 2020-09-01 | 3.35% | 3.24% |
| 2020-10-01 | NA | 3.18% |
| 2020-11-01 | NA | 3.19% |
| 2020-12-01 | 3.06% | 3.00% |
| 2021-01-01 | 3.31% | 2.88% |
| 2021-02-01 | 3.23% | 2.83% |
| 2021-03-01 | 3.31% | 2.72% |
| 2021-04-01 | 3.46% | 2.62% |
| 2021-05-01 | 3.28% | 2.49% |
| 2021-06-01 | 4.00% | 2.36% |
| 2021-07-01 | 3.10% | 2.35% |
| 2021-08-01 | 3.18% | 2.44% |
| 2021-09-01 | 3.25% | 2.41% |
| 2021-10-01 | 3.40% | 2.40% |
| 2021-11-01 | 3.29% | 2.34% |
| 2021-12-01 | 3.41% | 2.45% |
| 2022-01-01 | 3.18% | 2.46% |
| 2022-02-01 | 3.56% | 2.60% |
| 2022-03-01 | 3.64% | 2.99% |
| 2022-05-01 | 4.68% | 4.01% |
| 2022-04-01 | 3.43% | 3.39% |
| 2022-06-01 | NA | 4.11% |
| 2022-07-01 | NA | 4.66% |
| 2022-08-01 | 5.57% | 5.36% |
| 2022-09-01 | NA | 5.60% |
| 2022-10-01 | 5.56% | 6.14% |
| 2022-11-01 | NA | 6.68% |
| 2022-12-01 | 6.56% | 6.97% |
| 2023-01-01 | 7.15% | 7.28% |
| 2023-02-01 | NA | 7.20% |
| 2023-03-01 | NA | 7.42% |
| 2023-04-01 | NA | 7.13% |
| 2023-05-01 | 5.93% | 7.08% |
| 2023-06-01 | 6.93% | 7.34% |
| 2023-07-01 | NA | 7.68% |
| 2023-08-01 | NA | 7.67% |
| 2023-09-01 | NA | 7.72% |
| 2023-10-01 | NA | 7.74% |
| 2023-11-01 | NA | 7.77% |
| 2023-12-01 | 7.31% | 7.69% |
| 2024-01-01 | NA | 7.65% |
| 2024-02-01 | 7.43% | 7.42% |
| 2024-03-01 | NA | 7.29% |
| 2024-04-01 | NA | 7.41% |
| 2024-05-01 | NA | 7.47% |
| 2024-06-01 | NA | 7.45% |
| 2024-07-01 | NA | 7.52% |
| 2024-08-01 | NA | 7.28% |
| 2024-09-01 | NA | 6.89% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
| 2015-01-01 | 5.07% | 2.81% |
| 2015-02-01 | 4.96% | 2.84% |
| 2015-03-01 | 4.94% | 3.00% |
| 2015-04-01 | 4.91% | 2.99% |
| 2015-05-01 | 5.00% | 3.06% |
| 2015-06-01 | 4.92% | 3.10% |
| 2015-07-01 | 4.95% | 3.18% |
| 2015-08-01 | 4.97% | 3.19% |
| 2015-09-01 | 4.90% | 3.16% |
| 2015-10-01 | 4.86% | 3.19% |
| 2015-11-01 | 4.74% | 3.26% |
| 2015-12-01 | 4.68% | 3.40% |
| 2016-01-01 | 4.84% | 3.58% |
| 2016-02-01 | 4.84% | 3.71% |
| 2016-03-01 | 4.86% | 3.77% |
| 2016-04-01 | 4.87% | 3.86% |
| 2016-05-01 | 4.84% | 3.95% |
| 2016-06-01 | 4.90% | 4.03% |
| 2016-07-01 | 4.78% | 4.12% |
| 2016-08-01 | 4.84% | 4.13% |
| 2016-09-01 | 4.71% | 4.32% |
| 2016-10-01 | 4.84% | 4.45% |
| 2016-11-01 | 4.94% | 4.57% |
| 2016-12-01 | 4.81% | 4.74% |
| 2017-01-01 | 4.73% | 4.73% |
| 2017-02-01 | 4.87% | 4.63% |
| 2017-03-01 | 4.95% | 4.49% |
| 2017-04-01 | 4.93% | 4.47% |
| 2017-05-01 | 4.93% | 4.38% |
| 2017-06-01 | 5.02% | 4.33% |
| 2017-07-01 | 5.01% | 4.38% |
| 2017-08-01 | 5.01% | 4.49% |
| 2017-09-01 | 5.06% | 4.44% |
| 2017-10-01 | 4.98% | 4.46% |
| 2017-11-01 | 4.90% | 4.54% |
| 2017-12-01 | 4.99% | 4.64% |
| 2018-01-01 | 4.93% | 4.65% |
| 2018-02-01 | 4.91% | 4.71% |
| 2018-03-01 | 4.73% | 4.70% |
| 2018-04-01 | 4.49% | 4.71% |
| 2018-05-01 | 4.65% | 4.88% |
| 2018-06-01 | 4.72% | 4.69% |
| 2018-07-01 | 4.51% | 4.91% |
| 2018-08-01 | 4.74% | 4.92% |
| 2018-09-01 | 4.62% | 4.83% |
| 2018-10-01 | 4.64% | 4.88% |
| 2018-11-01 | 4.67% | 4.87% |
| 2018-12-01 | 5.08% | 5.00% |
Top Cities by Total HECM Originations
| Rank | City | Zip | Total |
| 1 | PHILADELPHIA | 19143 | 679 |
| 2 | PHILADELPHIA | 19138 | 503 |
| 3 | PHILADELPHIA | 19148 | 497 |
| 4 | PHILADELPHIA | 19150 | 480 |
| 5 | PHILADELPHIA | 19131 | 447 |
| 6 | PHILADELPHIA | 19146 | 441 |
| 7 | PHILADELPHIA | 19145 | 390 |
| 8 | PHILADELPHIA | 19119 | 346 |
| 9 | PHILADELPHIA | 19139 | 308 |
| 10 | PHILADELPHIA | 19141 | 283 |
| 11 | PHILADELPHIA | 19144 | 281 |
| 12 | PHILADELPHIA | 19132 | 267 |
| 13 | PHILADELPHIA | 19147 | 262 |
| 14 | HANOVER | 17331 | 253 |
| 15 | WARMINSTER | 18974 | 244 |
| 16 | BENSALEM | 19020 | 237 |
| 17 | PHILADELPHIA | 19151 | 232 |
| 18 | WEST CHESTER | 19380 | 227 |
| 19 | PHILADELPHIA | 19121 | 214 |
| 20 | PHILADELPHIA | 19154 | 206 |
| 21 | PHILADELPHIA | 19111 | 205 |
| 22 | HAVERTOWN | 19083 | 193 |
| 23 | PHILADELPHIA | 19114 | 193 |
| 24 | PHILADELPHIA | 19140 | 193 |
| 25 | BETHLEHEM | 18017 | 190 |
| 26 | LANCASTER | 17601 | 185 |
| 27 | PHILADELPHIA | 19126 | 181 |
| 28 | MEDIA | 19063 | 180 |
| 29 | LANCASTER | 17603 | 177 |
| 30 | GREENSBURG | 15601 | 176 |
HECM Counselors
ADVANTAGE CREDIT COUNSELING SERVICE
2403 SIDNEY ST PITTSBURGH, PA 15203-2167
(888) 511-2227
ADVANTAGE CREDIT COUNSELING SERVICE
401 LAUREL ST PITTSTON, PA 18640-3557
(888) 511-2227
CATHOLIC CHARITIES DIOCESE OF ALLENTOWN
900 S. WOODWARD ST. ALLENTOWN, PA 18103-4179
(610) 435-1541
CCCS OF DELAWARE VALLEY, INC. DBA CLARIFI
280 NORTH PROVIDENCE ROAD MEDIA, PA 19063-3527
(800) 989-2227
CCCS OF DELAWARE VALLEY, INC. DBA CLARIFI
101 GREENWOOD AVENUE SUITE 340 JENKINTOWN, PA 19046-2627
(800) 989-2227
CCCS OF DELAWARE VALLEY, INC. DBA CLARIFI
1608 WALNUT ST FL 10 PHILADELPHIA, PA 19103
(215) 563-5665
CREDIT COUNSELING CENTER
832 SECOND STREET PIKE RICHBORO, PA 18954-1098
(215) 348-8003
MT. AIRY, U S A
6703 GERMANTOWN AVE – SUITE 200 PHILADELPHIA, PA 19119-2109
(215) 844-6021
SCHUYLKILL COMMUNITY ACTION
225 N. CENTRE ST. POTTSVILLE, PA 17901-2511
(570) 622-1995
TABOR COMMUNITY SERVICES, INC
308 E KING ST LANCASTER, PA 17602-5013
(717) 397-5182
HUD Offices
Philadelphia Regional Office
The Wanamaker Building
100 Penn Square East
Philadelphia, PA 19107-3380
Phone: (215) 656-0500
Office Hours: 8am to 4:30pm, Mon-Fri
Pittsburgh Field Office
William Moorhead Federal Building
1000 Liberty Avenue, Suite 1000
Pittsburgh, PA 15222-4004
Phone: (412) 644-6428
Office Hours: 8am to 4:30pm, Mon-Fri
Want to learn more? Click here to get free information about a reverse mortgage!
