Reverse Mortgage: Single Purpose Reverse Mortgage

A single-purpose reverse mortgage is one of the three main types of reverse mortgages and they are offered by state and local government agencies and non-profit organizations. The benefits of single purpose reverse mortgages are that it’s generally very cheap in terms of costs but they’re not available everywhere and can only used for the one purpose specified by the organization that offers the reverse mortgage. For example, some of them specify that you can only use it for repairs or improvements while others say you must use it for taxes. Another knock against single purpose reverse mortgages is that you can only qualify if you have moderate to low income.