There are different types of reverse home loans, and every one fits a different financial requirement - what is the interest rate today on mortgages. The most popular type of reverse home mortgage, these federally-insured home mortgages generally have greater upfront costs, but the funds can be used for any purpose. Although commonly available, HECMs are just offered by Federal Housing Administration (FHA)- approved lending institutions, and prior to closing, all debtors must get HUD-approved counseling.You can generally get a larger loan advance from this type of reverse home mortgage, especially if you have a higher-valued home. This home mortgage is not as typical as the other 2, and is typically provided by nonprofit organizations and state and regional government agencies. Customers can only use the loan (which is typically for a much smaller sized quantity) to cover one particular purpose, such as a handicap accessible remodel, explains Jackie Boies, a senior director of real estate and insolvency services for Money Management International, a not-for-profit debt therapist based in Sugar Land, Texas.