Single Purpose Reverse Mortgage

A single-purpose reverse mortgage allows homeowners that are 62 years of age or older to tap into their property’s equity to pay for expenses that are lender-approved. Lender-approved expenses that are typically covered by a single-purpose reverse mortgage are property taxes, significant home repairs and renovations, and home insurance premiums.

This can be beneficial for senior homeowners looking to receive a steady source of income to cover these costs if their retirement savings are not enough. Single-purpose reverse mortgages are also known as property tax deferral programs and deferred payment loans.