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Find the Best Reverse Mortgages in Madison, WI

A reverse mortgage converts equity in your home into a lump-sum payment, monthly payments or a line of credit, giving you extra cash to use however you want. You don’t repay the loan until you no longer live in the home. Madison.com has partnered with ConsumerAffairs to create this guide by comparing reviews and products of 29 businesses and choosing seven favorites from the top reverse mortgage companies in Madison.

Companies pay ConsumerAffairs to be authorized, and Madison.com 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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Types of reverse mortgages in Madison

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There are three main types of reverse mortgages: single-purpose reverse mortgages, Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgages.

The type of reverse mortgage in Madison that’s right for you depends in part on how you want to use the money and the value of your home.

  • Single-purpose reverse mortgage: A borrower can use the funds from this type of reverse mortgage for only one lender-specified purpose. Single-purpose reverse mortgages are offered by state and local government agencies and some nonprofits, but they aren't available everywhere. A single-purpose reverse mortgage is the least expensive type of reverse mortgage.
  • Home Equity Conversion Mortgage: A HECM is a federally insured reverse mortgage, with funds that can be used for any purpose. A HECM gives you several payment options. To qualify, you must meet with an approved counselor for an information session.
  • Proprietary reverse mortgage: This type of reverse mortgage is backed by a private lender. If you have a higher-value home and want to be able to borrow more than you can with a HECM, a jumbo proprietary reverse mortgage might be what you’re looking for. The requirements for a proprietary reverse mortgage in Madison may be different from those for a HECM.

Madison reverse mortgage requirements and payout process

To qualify for a reverse mortgage in Madison, you generally need to:

  • Be 62 or older
  • Own the home completely or have significant equity in it
  • Have the financial ability to continue to pay property taxes and homeowners insurance
  • Use the property as your primary residence
  • Not have any delinquent federal debt
  • Take part in an information session hosted by an approved counselor (for a HECM only)

Madison residents who want to take out a reverse mortgage should be prepared for a lender to examine their income, living expenses, assets and credit history as part of the application process.

Depending on the type of reverse mortgage in Madison, there are a number of ways to receive the loan funds:

  • Lump-sum payment
  • Fixed monthly payments for as long as you live in the home
  • Fixed monthly payments for a set number of months
  • A line of credit
  • A combination of monthly payments and a line of credit

Madison reverse mortgage FAQ

How does a reverse mortgage work in Madison?

In a reverse mortgage, a lender gives you cash in exchange for equity in your home. The cash can be in the form of a lump sum, monthly payments or a line of credit. You keep the title to the home and continue to live there. The loan doesn’t have to be paid back until you move out of the home, sell it or die. The money you receive from the lender generally isn’t taxable and doesn’t affect your Social Security or Medicare benefits. A reverse mortgage, like other types of loans, has fees and interest.

How do you pay back a reverse mortgage?

A reverse mortgage ordinarily must be paid back when the borrower dies, moves out of the home or sells it. According to AAG, once of the companies featured on this guide, the most common way to pay back a reverse mortgage is through the sale of the home. You or your heirs may also pay back the reverse mortgage using personal funds or another form of payment.

What are the drawbacks of a reverse mortgage in Madison?

Reverse mortgages have upfront costs and fees and interest that add up over time, decreasing the amount of equity you have in your home. This affects the value of the assets you leave your heirs. Most reverse mortgages have variable interest rates that can change over time. And the interest isn’t tax deductible on your return until you make full or partial repayment.

Madison reverse mortgage lender information

Finance of America Reverse

Finance of America Reverse’s products include HECMs and “reverse for purchase” loans for those looking to move into a new property. Madison customers can call or answer a few questions online for more information. FAR has been providing retirement solutions for over 17 years.

Finance of America Reverse

Liberty Reverse Mortgage

Over 60,000 customers have chosen Liberty Reverse Mortgage as their reverse mortgage lender. Loan options include HECMs, “reverse for purchase” loans and EquityIQ jumbo reverse mortgages. The Liberty “Iron Clad Guarantee” promises a $100 Visa gift card if the company can’t match a competitor’s program offering and a $500 credit toward closing costs if your loan doesn’t close within 60 days. Madison residents can complete an application with Liberty entirely from home.

Liberty Reverse Mortgage

American Advisors Group

American Advisors Group offers several different types of reverse mortgages, including HECMs, jumbo reverse mortgages with access of up to $4 million and “reverse for purchase” loans. Call the company to speak with a specialist and to go over loan options. Ask about AAG’s free, no-obligation info kit.

American Advisors Group Learn More (800) 485-9418

Fairway Independent Mortgage Corporation

Fairway Independent Mortgage Corporation has helped thousands of Americans with home loans since it started in business over 20 years ago, funding over $129 billion in loans. Different types of reverse mortgages, including HECMs, may be available. Madison residents can visit the local branch at 4750 S. Biltmore Lane, Madison, WI 53718.

Fairway Independent Mortgage Corporation

Guild Mortgage

Guild Mortgage is a national mortgage lender with six decades of experience. It has three loan officers ready to assist at its Madison branch. For more information about applying for a HECM with Guild Mortgage Company, visit its website, call or stop by 17 Applegate Court, Ste. 100 & 10, Madison, WI 53713.

Guild Mortgage

Thompson Kane & Company

Thompson Kane & Company is a mortgage company that offers reverse mortgages to adults 62 and older. It has a variety of resources, including calculator tools and a mortgage dictionary, on its website. Madison residents can contact Thompson Kane & Company online or by phone, or they can visit the branch at 8020 Excelsior Drive, Ste. 401, Madison, WI 53717.

Thompson Kane & Company

1st Reverse Mortgage USA

1st Reverse Mortgage USA is a mortgage company with over 10 years of experience in the industry. It offers HECMs and specializes in reverse mortgages for home purchase. 1st Reverse Mortgage USA has helped thousands of older adults obtain reverse mortgages. Call or fill out an online form to set up a free consultation.

1st Reverse Mortgage USA