Single-Purpose Reverse Mortgage

Considered as not as common reverse mortgages that can be available from government agencies and nonprofit groups.

From the word itself, the funds that the borrower might receive may be used for a single purpose only which is outlined by the lender. In an instance, the funds can be used to tackle home expenses such as paying property taxes or home maintenance repairs.

Generally, single-purpose reverse mortgage offers only for retirees with low or very low income because it provides the lowest-cost option among the categories.