A Single-Purpose Reverse Mortgage is a specialized financial product designed to help senior homeowners meet specific needs, such as home repairs or property tax relief. Unlike Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgages, which offer more flexibility, Single-Purpose Reverse Mortgages are typically offered by state or local government agencies and nonprofit organizations. Here’s what you need to know about them:

Eligibility Requirements

Eligibility criteria for Single-Purpose Reverse Mortgages may vary depending on the organization providing the loan. However, some common requirements include:

  • Age: You must be at least 62 years old.
  • Income Limits: Some programs have income restrictions.
  • Homeownership: You must own your home outright or have a significant amount of equity.
  • Property Type: These loans may be restricted to specific property types, such as single-family homes.

Purpose of Funds

As the name suggests, Single-Purpose Reverse Mortgages are intended for a single, specific purpose. These purposes may include:

  1. Home Repairs and Renovations: Many homeowners use Single-Purpose Reverse Mortgages to make necessary repairs or improvements to their homes, ensuring they remain safe and comfortable.
  2. Property Tax Relief: Some seniors use these loans to cover property tax payments, preventing tax-related issues that could lead to foreclosure.
  3. Energy Efficiency Upgrades: In some cases, funds can be used to make energy-efficient upgrades to a home, which can lead to cost savings over time.

Payment Options

Single-Purpose Reverse Mortgages typically offer limited payment options. The funds are often disbursed as a lump sum, directly covering the specific expense for which the loan was obtained.

Loan Limits and Costs

Loan limits and costs associated with Single-Purpose Reverse Mortgages vary depending on the program and lender. It’s essential to understand the terms and fees associated with these loans before proceeding.


Similar to other types of reverse mortgages, repayment of a Single-Purpose Reverse Mortgage is not required as long as you live in your home. However, the loan becomes due and payable when:

  • You move out of the home.
  • You sell the home.
  • You pass away.

At that time, the loan balance, along with any accrued interest and fees, is repaid from the sale proceeds. Any remaining equity belongs to you or your heirs.

Is a Single-Purpose Reverse Mortgage Right for You?

Deciding whether a Single-Purpose Reverse Mortgage is the right choice for your needs depends on your specific circumstances and financial goals. These loans can provide valuable assistance for addressing particular expenses, but they may have limitations in terms of flexibility compared to other types of reverse mortgages.

At Senior Security Mortgage, we can help you explore your options, understand the eligibility criteria, and guide you through the application process for Single-Purpose Reverse Mortgages. Contact us today to learn more about how this unique financial tool can benefit you.