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Reverse mortgage 101: single-purpose reverse mortgages

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Business and Finance 101 Examiner

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According to the Federal Trade Commission, single-purpose reverse mortgages are the least expensive type of reverse mortgage, but they do come with strings attached. Because they are offered by state and local governments as well as nonprofit organizations, they are not available everywhere and can only be used for one purpose specified by the nonprofit or government entity. For example, the lender might restrict the money from the reverse mortgage so that is can only be used for property taxes, or home repairs, not vacations or a new car. These types of reverse mortgages can be obtained by most homeowners with low or mid-range income levels.

For more info: 

ReverseMortgage.net

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, Business and Finance 101 Examiner

Andy Samuels is an Examiner.com intern and Cherry Creek High School (Denver) student who's won a state award for his opinion writing on business and financial matters. He is the Editor-in-Chief of his high school paper which recently won first place for the 5A division of high school newspapers...

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