Reverse mortgages are not a scam; but the marketplace for reverse mortgages is full of scammers.

In a way, shopping for a reverse mortgage puts you in the worst of all worlds because you’re swimming in waters infested with two kinds of sharks:

• Bogus websites offering bogus reverse mortgage ratings
• Bogus reverse mortgage companies paying for ratings on bogus websites.

This is why, in addition to so many scams around reverse mortgages, there are also lots of warnings including from:

• The FBI
• The Consumer Financial Protection Bureau
• Consumer Reports

So be careful out there, and make sure you own pay attention to information from content providers you know you can trust, and be wary of content and ratings from websites with names like ConsumersAdvocate.org and ConsumerAffairs.com; names we’d bet were chosen to make you think you were going to the Consumer Reports website or the website of a trusted government agency.

Speaking of scams:

Beware of reverse mortgage lenders who try to upsell you into other financial products or repairs for your home.

If you get a reverse mortgage, you’re going to end up with a lot of cash in your hands; don’t let the same person who tried to sell you a reverse mortgage tell you how to spend all that cash.

This is more common than you might think, as described by the US Federal Trade Commission:

Is a reverse mortgage right for you? Only you can decide what works for your situation. A counselor from an independent government-approved housing counseling agency can help. But a salesperson isn’t likely to be the best guide for what works for you. This is especially true if he or she acts like a reverse mortgage is a solution for all your problems, pushes you to take out a loan, or has ideas on how you can spend the money from a reverse mortgage.

For example, some sellers may try to sell you things like home improvement services – but then suggest a reverse mortgage as an easy way to pay for them. If you decide you need home improvements, and you think a reverse mortgage is the way to pay for them, shop around before deciding on a particular seller. Your home improvement costs include not only the price of the work being done – but also the costs and fees you’ll pay to get the reverse mortgage.

Some reverse mortgage salespeople might suggest ways to invest the money from your reverse mortgage – even pressuring you to buy other financial products, like an annuity or long-term care insurance. Resist that pressure. If you buy those kinds of financial products, you could lose the money you get from your reverse mortgage. You don’t have to buy any financial products, services or investment to get a reverse mortgage. In fact, in some situations, it’s illegal to require you to buy other products to get a reverse mortgage.

Reverse mortgages are complicated and not for everyone; a reverse mortgage may or may not be right for you.

Before you get a reverse mortgage, make sure you understand two important factors:

• Your financial needs now and into the future
• Your age, the value of your home, and the size of your current mortgage

To help you evaluate these factors for yourself and your own circumstances, we recommend the following websites:

• US News
• Forbes

It pays to understand how the federal government regulates reverse mortgage lending to protect consumers.

Many reverse mortgage programs will require you to meet with a reverse mortgage counselor that’s been approved by the U.S. Department of Housing and Urban Development (HUD); the counselor will make sure you understand all eligibility requirements, and financial implications and alternatives to obtaining a reverse mortgage, particularly a FHA-approved home equity conversion mortgage.

HUD also publishes a list of all approved reverse-mortgage lenders.

You can find HUD’s list of approved lenders, approved reverse mortgage counselors, and other resources here.

There may be better ways to get cash out of your house, as a senior, rather then getting a reverse mortgage.

Before you dive into a reverse mortgage, consider these as possible, better alternatives as outlined by Forbes:

• Cash-out refinance
• Home equity loan
• Home equity line of credit
•  Sell your home

Investopedia recommends:

American Advisors Group (AAG)
Finance of America Reverse
Liberty Reverse Mortgage
Longbridge Financial
Quontic Bank
Reverse Mortgage Funding

Caring.com recommends: 

All Reverse Mortgage, Inc.
American Advisors Group (AAG)
Fairway Independent Mortgage
Finance of America Reverse
Liberty Home Equity Solutions
Longbridge Financial
Quontic Bank FSB
Retirement Funding Solutions
Reverse Mortgage Funding

* We’re not crazy about Caring.com’s advertising disclosure, but in spite of that it appears they have done a fair job of evaluating different lenders.