There are 3 basic types of Reverse Mortgages available.

Private companies offer proprietary reverse mortgages. These are typically more expensive, and the amount you receive is based on a formula that evaluates a variety of factors, including your current home equity and your (and spouses) age.

HECM reverse mortgages are federally insured, backed by the Department of Housing and Urban Development, and which place no limits on what you can do with the funds. Amount available also depends on a formula including current home equity and your (and spouses) age.

Single-purpose reverse mortgages, which are offered by government agencies and nonprofits in some areas, are the least expensive option but use of funds is restricted.