Home Equity Conversion Mortgages (HECMs)
The most common type of reverse mortgage available today, these loans are backed by the U.S. Department of Housing and Urban Development (HUD) and can be used for any purpose.
Proprietary reverse mortgages
Private loans that are insured by the mortgage companies offering them. They are not subject to all the same regulations as HECMs, but most companies have adopted similar consumer protections.
Single-purpose reverse mortgages
The least expensive option, these are offered by state and local government agencies, as well as non-profit organizations. These loans may be used for only one purpose, which the lender specifies, such as home improvements or taxes.
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