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Mutual of Omaha Reverse Mortgage
Date Updated: July 28, 2025
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
The Best Reverse Mortgage Company
Mutual of Omaha offers four reverse mortgage programs to help seniors fund expenses after retirement. Individuals who are at least 62 years old and have a minimum of 50% equity invested in their homes may apply for one of the company’s Federal Housing Administration-insured loans to meet their needs.
Approved by the Department of Housing and Urban Development, Mutual of Omaha’s reverse mortgage products allow seniors to continue living in their homes and benefit from the equity they’ve invested in the property.
Overview of Mutual of Omaha Reverse Mortgages
For more than a century, Mutual of Omaha has provided health insurance and financial services for individuals and businesses. The company offers seniors a variety of choices when it comes to placing a reverse mortgage on their homes.
- Seniors can utilize Mutual of Omaha’s standard home equity conversion mortgage to receive a lump sum or monthly payments.
- Another option is a reverse mortgage refinance that takes advantage of the property’s increased market value.
- The HECM for Purchase plan allows individuals to purchase a smaller home with the substantial equity they’ve invested in their current residence.
- With the company’s HomeSafe reverse mortgage, seniors may borrow against the equity amassed in high-value properties.
What Fees Does Mutual of Omaha Charge?
Although Mutual of Omaha doesn’t publish a standard list of fees for reverse mortgages, homeowners can expect to pay for services within the following ranges, depending on a number of variables, such as loan type and amount.
- Upfront Costs
- HUD-approved counseling: $125-$175
- Appraisal fees: $400-$500
- Closing costs: $1,000-$2,000
- Loan origination fees: $0-$6,000
- Initial mortgage insurance fee: 2.0% of the home’s appraised value, or $2,000 per $100,000, up to a maximum of $6,000, even if the home is valued at more than $300,000
- Ongoing Costs
- Interest: based on the outstanding principal and compounded annually
- Mortgage insurance: 0.5% of the outstanding balance up to the contract’s 5-year point or 78% of the property value is reached, whichever occurs first
- Service fees: $25-$35 per month
Full Review of Mutual of Omaha’s Reverse Mortgage Features
The different reverse mortgage programs that Mutual of Omaha offers are designed to meet specific needs; however, they all share certain eligibility criteria.
Eligibility
In order to qualify for any of the loan options, borrowers must be at least 62 years old and have a minimum of 50% equity invested in their properties. They must also provide proof that the home is their primary residence.
In addition, HUD requires specific property parameters to qualify for a reverse mortgage. A single-family residence, two- to four-unit property, manufactured home, condominium or townhome built on or after June 15, 1976, may be eligible.
Property condition requirements are another aspect of HUD’s loan prerequisites. Individuals with homes in need of maintenance may be able to apply with the intention of using the reverse mortgage to make necessary repairs.
Length of Loan
Reverse mortgage loans remain intact as long as the home’s taxes, insurance, any HOA fees, ongoing maintenance and residency requirements are kept up according to the contract.
Repayment Requirements
Seniors may opt for one of the four reverse mortgage products Mutual of Omaha offers. Each gives borrowers a financial solution without a monthly loan payment requirement. The balance is paid from the sale of the property when the last borrower dies or moves.
Also certain accommodations can be made for non-borrowing surviving spouses to remain in the home. Heirs may repay the loan or deed the property back to the lender.
Mutual of Omaha Reverse Mortgage Loan
The home equity conversion mortgage allows seniors to remain in their homes while cashing out on the equity they’ve built.
Payout Options
Seniors may receive a lump sum payout, fixed monthly payments or save the cash in an interest-bearing line-of-credit account to use as needed.
Federally Insured Mortgage Loan
The HECM loan is insured and regulated by the FHA.
Interest Rates
The lump sum disbursement has a fixed interest rate throughout the loan’s term. The other reverse mortgage disbursement options are offered with variable rates. Those fees include a base interest rate and an added lender’s margin of 1% to 3%.
Maximum Loans
The most you can borrow depends on the home’s appraised value up to an FHA maximum of $970,800, the age of the youngest borrower, your equity and the loan’s interest rate. Reverse mortgages typically range between 40% and 60% of the property’s value.
Mutual of Omaha Reverse Mortgage Refinance
Retirees who want to take advantage of their properties’ increased values may be eligible to refinance their existing reverse mortgages.
Eligibility
Individuals must wait a minimum of 18 months between the closing of the last mortgage transaction and submitting the current reverse mortgage refinance application.
Payout Options
In addition to restructuring their home’s loan, borrowers may receive a lump sum payment, monthly disbursements or a line of credit with any remaining equity.
Federally Insured Mortgage Loan
HECM Refinance loans are FHA regulated and insured.
Maximum Loans
The FHA insures HECM Refinance loans up to $970,800.
Mutual of Omaha HECM for Purchase
Seniors looking to downsize or purchase a property that better meets their needs can use the Home Equity Conversion Mortgage for Purchase option to secure the necessary down payment.
Eligibility
Borrowers must have enough equity in their current home to subsidize the new property’s down payment.
Payout Options
The one-time downpayment payout from the sale of the borrower’s previous home is typically between 45% and 62% of the new home’s purchase price.
Federally Insured Mortgage Loan
HECM for Purchase loans are federally regulated and insured through FHA.
Maximum Loan
The maximum loan or claim amount the FHA will ensure is $970,800.
Mutual of Omaha HomeSafe Reverse Mortgage
Eligibility
Seniors living in condos valued over $500,000 or single-family homes appraised above $850,000 may be interested in the HomeSafe reverse mortgage.
Payout Options
Borrowers may receive a lump sum payment or monthly term payments for up to 60 months.
Federally Insured Mortgage Loan
The HomeSafe reverse mortgage is not FHA insured. However, private insurance options are available.
Interest Rates
The HomeSafe program offers competitive fixed interest rates.
Maximum Loan
The maximum HomeSafe loan is $4 million.
Who Should Consider a Mutual of Omaha Reverse Mortgage?
Seniors Who Need Money To Fund Retirement Expenses
Seniors who want to remain in their current home may want to convert the equity into cash to pay for unexpected medical expenses, home repairs and maintenance, or supplement monthly income.
Seniors Who Want To Age in Place in a Smaller, Low-Maintenance Home
Some seniors want to downsize or upgrade their home environment. For them, a reverse mortgage product, such as an HECM for Purchase, suits their needs. They can use the money earned from the sale of their previous home and convert it into a substantial down payment on the new home’s purchase without using cash reserves.
What Are People Saying About Mutual of Omaha’s Reverse Mortgages?
Individuals who’ve contacted Mutual of Omaha to inquire about its reverse mortgage programs generally report having a favorable experience. Although some potential clients indicate they’ve completed the online application and waited months before hearing from a loan professional, others are complimentary of the personalized service they’ve received.
Reviewers share that each of the company’s reverse mortgage options was thoroughly explained, and they received assistance with navigating the loan process. Many borrowers appreciate agent responsiveness and feel they were appropriately matched with a product that best meets their needs.