1. Home Equity Conversion Mortgage (HECM):
    • Description: HECM is the most common and federally insured reverse mortgage program. It allows homeowners aged 62 and older to access their home equity while retaining ownership of their homes. HECMs offer flexible disbursement options, including lump sum, monthly payments, line of credit, or a combination.
  2. Single-Purpose Reverse Mortgage:
    • Description: Single-Purpose Reverse Mortgages are typically offered by state or local government agencies or nonprofit organizations. These loans are designed for specific purposes, such as home repairs, property tax relief, or energy-efficient upgrades. They are often associated with lower upfront costs.
  3. Proprietary Reverse Mortgage:
    • Description: Proprietary Reverse Mortgages are private loans offered by private lenders. They are designed for homeowners with high home values and provide access to larger loan amounts compared to HECMs. Proprietary reverse mortgages offer flexibility in disbursement options and eligibility criteria.
  4. Reverse Mortgage for Purchase (H4P):
    • Description: H4P is a specialized reverse mortgage program that allows seniors to purchase a new primary residence using a reverse mortgage. It eliminates the need for monthly mortgage payments and provides additional income during retirement. Borrowers must be at least 62 years old and attend a HUD-approved counseling session.
  5. HECM for Purchase (H4P):
    • Description: HECM for Purchase is a variation of the HECM program designed for homebuyers. It enables seniors to buy a new home using a reverse mortgage while avoiding monthly mortgage payments. Similar to H4P, borrowers must be at least 62 years old and attend counseling.