A reverse mortgage isn’t always the best option for a senior, but there are at least 10 scenarios when taking out the federally-insured loan should be considered, says the Mortgage Professor in a recent column.

Scenarios where seniors should reject a home equity conversion mortgage (HECM) include when there are plans to pass on a debt-free house to their estate or a desire to have a spouse or child continue living in a home after the borrower passes away, writes Jack Guttentag, aka “The Mortgage Professor.”

But there are many other scenarios where a reverse mortgage could be the best strategy. 

“Senior homeowners who would not endanger their goals might improve their lives by taking a HECM,” he says.

A reverse mortgage should be considered in 10 different situations for seniors:

1. Whose incomes drop when they retire, but still have to make mortgage payments
2. Retiring before 65 who want to delay applying for Social Security benefits
3. Living on Social Security or small pensions who want to supplement their incomes
4. Who have retired with a nest egg but are worried their money won’t last
5. Seeking protection against a sudden drop in income, whether a spouse dies or pension is terminated
6. Wanting to buy a house without the monthly payment
7. Looking for an effective way to manage fluctuating incomes
8. In need of resources to meet occasional expenses 
9. Planning to sell their homes in a few years, but need supplemental income in the meantime
10. With multiple needs requiring multiple payment options 

Read more at The Mortgage Professor.  

Written by Alyssa Gerace