Among the benefits of a reverse mortgage are that it can give you a steady source of income without having to sell your home. Moreover, since the loan doesn't count as income for federal tax purposes, it won't affect your social security and Medicare payments. Nonetheless, it's important to remember that some people have lost their homes because they could not pay monthly fees. In the same way, it could cost your heirs if you fail to pay your monthly fees.

A single-purpose reverse mortgage allows older homeowners to borrow against the equity in their home. In return, you'll need to use the money for one specific purpose - paying property taxes or performing maintenance and upkeep on the home. While these programs are generally more affordable than other reverse mortgages, they may be harder to obtain. The pros and cons of single-purpose reverse mortgages differ by lender and purpose.