well, I don't know...actually I do.
Most reverse mortgages, or the most popular reverse mortgages are the FHA HECM (home equity conversion mortgage).
They are insured by the FHA (US gov) and have a very distinct and powerful option, that being the guaranteed, and growing equity line of credit which is an available option.
so what is a proprietary reverse mortgage?
in essence it is a reverse mortgage offerred by a private investor, and not government insured. Also in most cases there isn't an equity line available.
so what are the benefits you may be wondering? there are several, and i will mention a few, although probably not all.
a proprietary revrese, in most cases have higher loan limits, often into the millions of $$$
they also do not charge the FHA insurances, which while i personally do not believe they are expensive, they are significant. (Dad use to say you get what you pay for)
they are also much more condiminium friendly, as the investors decide the community approval process.
and they may allow the borrower to captue more $$$ or require a lower intial investment (down payment) if it is a purchase.
now to show you how creative some of the reverse mortgage lenders are becoming; you can now acquire a true reverse 2nd mortgage, and leave your current first mortgage in place.
or one investor has lowered the initial qualifying age to 60 years old instead of 62.
so what's the conclusion you may be wondering?
well, we now have more choices, which I feel is a good thing...but beware in making your choice that you feel comfortable that you are making the right choice, and...
Make sure, make very sure that you are dealing with a professional, well trained Reverse Mortgage Planner who you can TRUST!