How Many Types of Reverse Mortgages Are There? (20+ Options Explained)

There are more than 20 different reverse mortgage programs available today, and for the first time, proprietary reverse mortgages now account for a larger share of the market by dollar volume than FHA-insured HECMs. Most homeowners have only ever heard of one or two options — usually whichever program the first lender they called happens to offer. In this post, I'll break down how these programs differ, what's driving the shift toward proprietary products, and how to figure out which type of reverse mortgage may fit your situation. You can also watch the companion Short on the videos page.

▶

FHA (HECM) vs. Proprietary Reverse Mortgages

For years, the FHA-insured Home Equity Conversion Mortgage (HECM) was the default reverse mortgage most homeowners encountered. HECMs are federally insured, standardized, and subject to FHA lending limits.

Proprietary reverse mortgages — sometimes called "jumbo" reverse mortgages — are privately offered by individual lenders rather than insured by FHA. Because each lender designs its own program, proprietary options can vary meaningfully from one lender to the next:

• Interest rates — some proprietary programs offer lower rates than a comparable HECM
• Available proceeds — some provide more access to home equity, particularly for higher-value homes above FHA lending limits
• Closing costs — some carry lower upfront costs than a standard HECM
• Loan structure — some are fixed-rate, some adjustable, and terms vary by lender

That variation is exactly why proprietary reverse mortgages have grown so quickly: they let lenders compete on terms in a way a standardized FHA product can't. That competition is also why proprietary programs now outsell FHA reverse mortgages by dollar volume — a shift that's relatively recent and one most homeowners haven't caught up with yet.

What Is a Reverse Mortgage Second?

One of the newer and less understood options is a reverse mortgage second. Unlike a traditional reverse mortgage, which typically replaces your existing mortgage, a reverse mortgage second may allow you to access home equity while keeping your current first mortgage in place — including a low rate you may have locked in years ago.

This can be a meaningful option for homeowners who don't want to disturb a first mortgage with favorable terms but still want access to equity. It's not the right fit for everyone, but it's a good example of why "reverse mortgage" isn't a single product — it's a category with very different tools inside it.

Why Reverse Mortgage Programs Differ by Lender

If you call a single lender directly, they can only tell you about their own program. That's true whether it's a bank, a credit union, or a national reverse mortgage company — each one is going to present the option they offer, not necessarily the option that's best for you.

With more than 20 reverse mortgage programs on the market and 10+ active wholesale lenders, the differences between programs can add up to real money and real flexibility — or the lack of it — over the life of the loan. Two homeowners with similar homes and similar goals can end up with very different recommendations once you factor in age, home value, existing mortgage balance, and what they actually want the funds for.

How to Compare Reverse Mortgage Options

Because I work through the wholesale market rather than originating for a single lender, I'm able to compare programs across 10+ lenders and match a homeowner's situation against the full range of what's available — FHA and proprietary, including reverse mortgage second options where appropriate.

Just as important: part of that process is being honest when a reverse mortgage isn't the right move yet. My job isn't to place you into a loan — it's to help you understand the options well enough to make the right decision, even if that decision is to wait.

Get the Free Guide

I've put together a free guide that walks through the different reverse mortgage options, what makes them different, and who each one may be best suited for. There's no obligation and no pressure.

Get the Free Guide →

Frequently Asked Questions

How many types of reverse mortgages are there?

There are more than 20 reverse mortgage programs available across the market, including FHA-insured HECMs and a growing number of proprietary (non-FHA) programs offered by individual lenders.

What is the difference between FHA and proprietary reverse mortgages?

FHA reverse mortgages (HECMs) are federally insured and standardized, while proprietary reverse mortgages are privately offered by individual lenders and can differ in interest rates, available proceeds, and closing costs. Proprietary reverse mortgages now account for a larger share of the market by dollar volume than FHA reverse mortgages.

What is a reverse mortgage second?

A reverse mortgage second is a program that may allow a homeowner to access home equity while keeping their existing first mortgage in place, rather than replacing it.

Why do reverse mortgage terms vary so much between lenders?

Because proprietary reverse mortgages aren't standardized by FHA, each lender designs its own program — which is why rates, proceeds, and closing costs can differ significantly depending on which lender you work with.

Jay Zayer is a Certified Reverse Mortgage Professional (CRMP) and Certified Housing Wealth Advisor with ZING Reverse Mortgage Advisors, licensed in California and Arizona (NMLS #307713). This article is for educational purposes and is not a loan commitment or offer to lend. Terms vary by lender and program; not all applicants will qualify. Equal Housing Opportunity.

This material is not from HUD or FHA and has not been approved by HUD or any government agency. All reverse mortgage loans are subject to credit and property approval.