There are different types of reverse home loans, and each one fits a various financial requirement - how common are principal only additional payments mortgages. The most popular kind of reverse home mortgage, these federally-insured home mortgages typically have greater upfront costs, but the funds can be used for any function. Although extensively offered, HECMs are just offered by Federal Real estate Administration (FHA)- approved lenders, and before closing, all customers must get HUD-approved counseling.You can generally receive a larger loan advance from this type of reverse home loan, especially if you have a higher-valued house. This home loan is not as typical as the other two, and is typically offered by not-for-profit companies and state and city government firms. Customers can just utilize the loan (which is generally for a much smaller sized amount) to cover one specific function, such as a handicap available remodel, explains Jackie Boies, a senior director of housing and bankruptcy services for Money Management International, a not-for-profit debt counselor based in Sugar Land, Texas.