Single-Purpose Reverse Mortgage

This kind of mortgage is not as common as the two reverse mortgages, it is also known as a property-tax deferral program. It is an agreement that is normally offered by nonprofit organizations and state and local government agencies.

The single-purpose loan allows the homeowners to access part of their home’s equity to pay for a lender-approved expense. It only means that the borrowers can only use the loan to cover one specific purpose, typically property taxes or necessary home repairs.

Usually, single-purpose reverse mortgages are offered only for senior citizens with low or very low incomes.