Reverse mortgage in Alabama
The picture of Alabama lending comes from HUD's own loan records: who lends, where loans are and who counsels.
- In Alabama, 222 HECMs closed over a year
- Median home value HUD counted: $270,000
- Most HECMs in Alabama: Longbridge Financial (49)
Between September 2025 and August 2026, 0.9% of the 24,529 HECM loans nationwide closed in Alabama. HUD's data counts 222 and ranks the state 28th among the 50 states and DC.
The loans included 12 purchases using HECM for Purchase, 20 refinancings of an older HECM and 4 that reached the $1,249,125 property value cap.
Alabama HECMs compared with the national figures
The bottom two rows were taken from the calculator.
| Alabama | Against all HECMs | |
|---|---|---|
| HECMs closed | 222 | 0.9% of all 24,529 |
| Median home value counted | $270,000 | $170,000 less |
| Median principal limit | $115,275 | $78,897 less |
| Principal limit as a share of value | 42.2% | 1.2 points lower |
| Median expected rate | 5.875% | the same |
| HECM for Purchase | 5.4% | 0.1 points lower |
| Refinanced HECMs | 9% | 1.9 points lower |
| Lenders with a loan here | 16 | of 34 nationwide |
| Median home, no mortgage: what remains after costs at age 70 | $90,620 | $60,920 less |
| Usable in the first year at age 70 | $48,932 | $34,672 less |
HECM lenders in Alabama, ranked by loan count
In Alabama, 16 lenders sponsored HECMs. The three largest lenders, Longbridge Financial, Mutual of Omaha Mortgage and Finance of America Reverse, closed 140 of the 222 loans (63%). Check the national ranking for a comparison.
| Rank | Lender | HECMs | Share |
|---|---|---|---|
| 1 | Longbridge Financial | 49 | 22.1% |
| 2 |  | 47 | 21.2% |
| 3 | Finance of America Reverse | 44 | 19.8% |
| 4 | South River Mortgage | 16 | 7.2% |
| 5 |  | 14 | 6.3% |
| 6 | Traditional Mortgage Acceptance Corporation | 13 | 5.9% |
| 7 |  | 10 | 4.5% |
| 8 |  | 6 | 2.7% |
| 9 | Guild Mortgage | 6 | 2.7% |
| 10 |  | 3 | 1.4% |
Local lenders and brokers who originated HECMs in Alabama
Alabama HECM applications were taken by 36 companies. Beyond the national lenders, the firms that originated the most were Atlantic Avenue Mortgage (14), Movement Mortgage (7), West Capital Lending (6), Edge Home Finance (6), Loandepot.com (5), New American Funding (4), Salter Enterprises (3) and Success Mortgage Partners (2). These counts are of the company that originated each loan, while the ranking above counts the lender that sponsored it, so the two lists are not comparable.
Where in Alabama HECMs were made
Madison recorded 23 of the 222 loans, while Jefferson County led the list with 34. Cities with the highest counts: Huntsville (16), Birmingham (15), Mobile (7), Albertville (5) and Daphne (5). City names are the mailing city on each HUD record and can reach into nearby counties, so a city's count need not match the county table.
| County | HECMs | Share |
|---|---|---|
| Jefferson | 34 | 15.3% |
| Madison | 23 | 10.4% |
| Baldwin | 22 | 9.9% |
| Shelby | 13 | 5.9% |
| Mobile | 12 | 5.4% |
| Marshall | 10 | 4.5% |
HUD-approved counselors for reverse mortgages in Alabama
HUD lists 1 counseling agency for reverse mortgages based in Alabama. Their phone numbers are in HUD's counselor search.
| City | Agency | How they counsel | Languages |
|---|---|---|---|
| Birmingham, AL | United Way of Central Alabama | phone, in person, video, online, group | English |
Property tax relief for older homeowners across Alabama
If you and your spouse have a combined federal taxable income of $12,000 or less, and you are 65 or older, Alabama's H-3 homestead exemption applies. It leaves you exempt from all property taxes. Details at Homestead Exemptions - Alabama Department of Revenue.
Who oversees reverse mortgage lenders in Alabama
Lenders who make loans secured by real estate may have to obtain a surety bond. In Alabama, the State Banking Department is the body that may require one. Alabama Legislature.
Source: HUD HECM portfolio snapshot, covering the period from September 2025 through August 2026. Every state.