There are different kinds of reverse mortgages, and each one fits a different financial need - hawaii reverse mortgages when the owner dies. The most popular type of reverse mortgage, these federally-insured home mortgages generally have higher upfront costs, however the funds can be used for any function. Although commonly readily available, HECMs are only provided by Federal Real estate Administration (FHA)- approved lenders, and prior to closing, all debtors need to get HUD-approved therapy.You can generally get a bigger loan advance from this type of reverse mortgage, particularly if you have a higher-valued house. This mortgage is not as common as the other two, and is typically offered by not-for-profit organizations and state and local government firms. Customers can just use the loan (which is generally for a much smaller amount) to cover one specific function, such as a handicap available remodel, describes Jackie Boies, a senior director of real estate and personal bankruptcy services for Money Management International, a nonprofit financial obligation therapist based in Sugar Land, Texas.