These kinds of reverse mortgages are a lot like Home Equity Conversion Mortgages in that you can do whatever you want with the money, but they differ in who offers them – these are offered by private companies and are really private loans. Again, more expensive than the single purpose reverse mortgage, but in turn you get the freedom to do whatever you want with the funds.
Some other differences are that HECMs will usually offer larger loans at a cheaper cost compared to the proprietary loans but proprietary loans will be more likely be larger overall. If you need the most amount of money and you’re less concerned with cost, a proprietary reverse mortgage will be more in line with what you want.