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    A single-purpose reverse home loan is provided by government firms at the state and local level, and by not-for-profit groups too. It's a kind of reverse mortgage that puts rules and constraints on how you can utilize the cash from the loan. (So you can't invest it on an expensive trip!) Generally, single-purpose reverse mortgages can only be used to make real estate tax payments or spend for home repair work.

    The important things to keep in mind is that the lending institution has to approve how the cash will be utilized prior to the loan is given the OK. These loans aren't federally insured either, so lenders don't need to charge mortgage insurance coverage premiums. However since the cash from a single-purpose reverse home mortgage has actually to be utilized in a particular method, they're normally much smaller in their quantity than HECM loans or exclusive reverse mortgages.


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