There are several benefits associated with the reverse mortgage.

First, there are no income or credit requirements when qualifying for this loan. Second, the money received from this loan is not taxable as income. Third, the borrower has no repayment obligations until the property is no longer his residence. Thus, the borrower may live in the property until his/her death without ever making a payment back to the loan. Another significant benefit of this loan is the security of knowing that reverse mortgages are fully insured under the federal government's Federal Housing Administration's mortgage insurance program.