There are various types of reverse home loans, and each one fits a different financial requirement - what are the main types of mortgages. The most popular kind of reverse mortgage, these federally-insured home loans typically have greater upfront expenses, but the funds can be utilized for any function. Although commonly readily available, HECMs are just used by Federal Real estate Administration (FHA)- approved lending institutions, and before closing, all debtors need to receive HUD-approved therapy.You can normally receive a bigger loan advance from this type of reverse mortgage, specifically if you have a higher-valued house. This home loan is not as common as the other two, and is generally used by nonprofit organizations and state and city government firms. Debtors can just use the loan (which is normally for a much smaller quantity) to cover one particular purpose, such as a handicap available remodel, discusses Jackie Boies, a senior director of housing and personal bankruptcy services for Money Management International, a not-for-profit financial obligation counselor based in Sugar Land, Texas.