When it comes to a reverse morgage, the biggest misconception is that there is only one type available. However this is far from the truth as there are actually three types of which the standard FHA reverse morgage is the most popular choice comprising of about 90%.

Basically what you have are the FHA, the Home Keeper as well as the Jumbo. The concept of the reverse morgage while it may seem to be the same as a straight mortgage there are many things that differentiate it; other then the fact that it is done in reverse. Basically with the reverse morgage, the lender pays you as the homeowner for the house until you are no longer living there and once this occurs they will take possession of the home irregardless as to whether the amount has been paid in full or not.

The FHA reverse morgage is the only one of the three that are federally insured which is the biggest reasons why so many choose it even though it may not exactly be the best option for you. However, the bonuses associated with the federally insured FHA reverse morgage is that even if you live past the date of full loan payment, you will still receive the monthly payments based on the initial mortgage.

While there are many limitations to the reverse morgage loan, there are many more beneficial reasons to choose it especially if you plan on outliving the term of the loan.