There are different types of reverse home loans, and each one fits a various financial need - what are the main types of mortgages. The most popular type of reverse home mortgage, these federally-insured home mortgages usually have greater upfront expenses, but the funds can be utilized for any purpose. Although extensively available, HECMs are only provided by Federal Real estate Administration (FHA)- approved lenders, and before closing, all debtors need to receive HUD-approved therapy.You can normally receive a larger loan advance from this type of reverse home mortgage, particularly if you have a higher-valued home. This mortgage is not as typical as the other two, and is typically used by not-for-profit organizations and state and local federal government firms. Debtors can only utilize the loan (which is generally for a much smaller sized amount) to cover one specific function, such as a handicap accessible remodel, explains 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.