There are different kinds of reverse home loans, and every one fits a different financial need - what is the best rate for mortgages. The most popular kind of reverse home mortgage, these federally-insured home loans usually have greater upfront costs, but the funds can be used for any function. Although widely available, HECMs are only provided by Federal Housing Administration (FHA)- authorized lenders, and prior to closing, all customers should receive HUD-approved counseling.You can generally receive a larger loan advance from this type of reverse mortgage, particularly if you have a higher-valued home. This home mortgage is not as common as the other two, and is typically used by nonprofit organizations and state and regional federal government firms. Debtors can only use the loan (which is generally for a much smaller quantity) to cover one particular function, such as a handicap available remodel, describes Jackie Boies, a senior director of real estate and insolvency services for Finance International, a not-for-profit debt therapist based in Sugar Land, Texas.