Top 5 Leading Home Equity Conversion Plans

What is a home equity conversion plan?
A home equity conversion plan allows homeowners, especially seniors, to unlock the value of their property to access cash during retirement. These plans leverage the equity in your house as collateral, often without requiring monthly payments until the property is sold or the loan is due. Typically utilized by older individuals with high-value, debt-free homes, these plans can be used for debt repayment, home improvements, or supplementing retirement income.

Choosing such a plan requires careful consideration, as it impacts inheritance rights and adds interest costs over time, with no standard repayment schedule. It’s important to understand the implications before proceeding.

The key to managing a home equity conversion plan securely is to borrow a manageable amount less than your home's value. While regulations for these plans are not uniform across all financial institutions, legal frameworks govern property transactions and financing. Select a plan that allows you to remain comfortable in your home without incurring debt that exceeds your home's equity.

Looking for the best home equity options? Here are top providers to help you access funds stored in your property:

• Lending Tree
  Lending Tree offers a platform for comparing various home equity products among different lenders, simplifying the process for homeowners. They require information like existing debts, income, and assets to match you with suitable lenders, ensuring transparency and better rates.
• LoanDepot
  LoanDepot is a reputable non-bank lender providing up to 90% of your home’s value for equity loans, supporting necessary expenses. They offer quick online application processes, competitive fixed rate second mortgages, and flexible loan amounts from $25,000 to $250,000. Loan repayment is flexible, and they assist in determining suitable loan terms.
• Sofi
  Sofi specializes in various personal lending solutions, including mortgages and refinancing, having issued over $10 billion in loans. Their rates are competitive, and processing times are faster compared to traditional home equity loans.
• Rate Marketplace
  Rate Marketplace is an online hub providing quick access to multiple home equity lending options. They educate consumers with resources about rates, loans, and insurance, and facilitate easy comparison across lenders, making the borrowing process simple and transparent.
• American Advisors Group
  This group focuses on reverse mortgages for seniors. Instead of regular payments, homeowners receive funds either as a lump sum or monthly installments and retain ownership until they meet certain conditions. Insured by the FHA, it offers options for families to retain or purchase the property later under government guidelines.