Mortgage for Home Equity Conversion The most typical kind of reverse mortgage is a home equity conversion mortgage (HECM). These mortgages are protected by Federal Housing Administration insurance (FHA). Due to different costs and fees, HECMs are often more expensive than conventional house mortgages.  Exclusive Reverse Mortgage Reverse mortgages that are made outside of the FHA-insured HECM program are known as proprietary reverse mortgages. The majority of the time, private loans are used on properties with equity that is higher than what is permitted under the FHA program because they lack federal insurance.  Reverse mortgage for a single purpose The least expensive option among the three is a reverse mortgage with a specific purpose. State, local, and charitable organizations provide reverse mortgages that are only used for that purpose. With this kind of reverse mortgage, the agency outlines its intended use and stipulates that the loan funds cannot be utilized for any other reason