There are various types of reverse mortgages, and each one fits a different financial requirement - mortgages or corporate bonds which has higher credit risk. The most popular kind of reverse mortgage, these federally-insured home mortgages normally have higher in advance expenses, however the funds can be used for any purpose. Although commonly offered, HECMs are only used by Federal Housing Administration (FHA)- approved lenders, and before closing, all debtors need to receive HUD-approved counseling.You can normally receive a larger loan advance from this kind of reverse mortgage, particularly if you have a higher-valued home. This mortgage is not as typical as the other two, and is usually offered by nonprofit organizations and state and city government agencies. Borrowers can just utilize the loan (which is normally for a much smaller sized amount) to cover one particular function, such as a handicap available remodel, discusses Jackie Boies, a senior director of real estate and bankruptcy services for Finance International, a not-for-profit financial obligation counselor based in Sugar Land, Texas.