There are different kinds of reverse home mortgages, and each one fits a different monetary requirement - percentage of applicants who are denied mortgages by income level and race. The most popular type of reverse home mortgage, these federally-insured home loans typically have greater in advance costs, however the funds can be utilized for any purpose. Although commonly offered, HECMs are just used by Federal Real estate Administration (FHA)- approved lenders, and before closing, all borrowers must receive HUD-approved therapy.You can normally receive a larger loan advance from this type of reverse home mortgage, particularly if you have a higher-valued home. This home loan is not as common as the other 2, and is usually used by not-for-profit organizations and state and local federal government agencies. Borrowers can only utilize the loan (which is typically for a much smaller amount) to cover one particular function, such as a handicap accessible remodel, describes Jackie Boies, a senior director of housing and bankruptcy services for Money Management International, a nonprofit debt counselor based in Sugar Land, Texas.