Reverse mortgage lenders are agencies, either nonprofit or governmental, offering reverse mortgages to senior Americans. A person who has reached the age of 62 and owns a house is eligible to apply for a reverse mortgage. Reverse mortgages are authorized by the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA).

There are basically three types of reverse mortgages: single-purpose, federally insured and proprietary reverse mortgages and lenders vary with these types. In the first type of mortgage, the reverse mortgage lenders are nonprofit organizations or state and local government agencies. The federally insured Home Equity Conversion Mortgage (HECM) is provided by the US Department of Housing and Urban Development (HCD). This is the only reverse mortgage where the lender is the federal government. The third category of mortgage is private, and the lenders are mainly private companies.

Reverse mortgage lenders offer payment to the borrower either as a one-time lump sum or through regular monthly payments. The reverse mortgage lenders offer the payment based on the value of the home. The repayment has to be done when the owner moves from his home or sells the property. If the borrower passes away the amount has to be paid by the heir, or the lender will sell the property to recover the loan amount and interest.

Non-federal loans are provided by a number of organizations employed in lending. Some of the leading reverse mortgage lenders include National Reverse Mortgage Lenders Association (NRMLA), and American Reverse Mortgage Corporation. It is best to consult a counselor and know about the most suitable reverse mortgage schemes available before applying for one.