Single-Purpose Reverse Mortgage in Hawaii
Learn how single-purpose reverse mortgages work in Hawaiʻi. Low-cost options for home repairs or taxes, plus eligibility and ʻohana-friendly guidance.
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A Low-Cost, Limited-Use Option for Kupuna
A Single-Purpose Reverse Mortgage is a special type of reverse mortgage offered by some local government agencies and nonprofits. While not common in Hawaiʻi, it can be a helpful, low-cost solution for kupuna who need support with specific home-related expenses.
This guide explains how it works, who it helps, and how it compares to HECM and jumbo reverse mortgages, all in clear, simple language.
What Is a Single-Purpose Reverse Mortgage?
A Single-Purpose Reverse Mortgage allows homeowners 62+ to borrow money only for one specific purpose, such as:
- Home repairs or renovations
- Property taxes
- Essential home improvements
- Accessibility updates
- Roof, plumbing, electrical, or safety repairs
Because the funds must be used for a designated purpose, these loans are often:
- Low interest
- Low fees
- Easier to qualify for
- Designed to help seniors stay safely in their homes
Are Single-Purpose Reverse Mortgages Available in Hawaii?
- County
- Local government programs
- Nonprofit housing organizations
- Home repair grants or loans
- Property tax relief programs
- Senior housing improvement programs
However, programs may change year to year, and many kupuna discover that HECM or jumbo options provide more flexibility and larger support.
Single Purpose Reverse Mortgage Calculator
Estimate loan amounts for property tax deferral, home repair, or accessibility improvement programs.
Note: This is an estimate. Your actual eligibility and loan amount will depend on a full financial review and HUD counseling.
Who Is a Single-Purpose Reverse Mortgage For?
This option is ideal for Hawaiʻi homeowners who:
- Need specific repairs or safety upgrades
- Want to lower property tax burden
- Have limited income
- Don’t need ongoing monthly funds
- Only require small financial support
If you need flexible or ongoing payouts, HECM or jumbo loans may be better options.
Single-Purpose Reverse Mortgage Benefits
Lower cost (often subsidized)
- Simple to qualify
- Perfect for repairs or taxes
- Helps kupuna age in place
- May not require high credit or income
This makes it a good fit for seniors who need targeted help.
Ready To Take Control Of Your Retirement?
Ensure you make informed financial decisions by consulting with a trusted reverse mortgage advisor familiar with Hawaii’s unique real estate landscape and financial conditions.
Single-Purpose vs. HECM vs. Jumbo
| Feature | Single-Purpose Reverse Mortgage | HECM (FHA-Insured) | Jumbo (Proprietary) |
| Best for | Small, specific needs | Most homeowners | High-value homes |
| Use of funds | One purpose only | Flexible | Flexible |
| Loan amount | Small | Moderate | Very large |
| Source | Gov./nonprofit | FHA | Private lenders |
| Cost | Low | Moderate | Varies |
| Condo/leasehold | Limited | Many qualify | Flexible |
| Age requirement | 62+ | 62+ | 60–62+ |
If you need flexibility, larger payouts, condo support, or long-term planning, HECM or jumbo loans are often better choices.
Eligibility Requirements
Eligibility depends on the organization offering the program, but generally includes:
- Age 62 or older
- Hawaiʻi primary residence
- Purpose must match the approved use
- Some income limits may apply
- Home must meet safety and property guidelines
- Funds cannot be used for unrelated expenses
Because eligibility rules vary, your best first step is to check availability.
Examples of Single-Purpose Uses in Hawaiʻi
Kupuna commonly use this program for:
- Roof repair or replacement
- Electrical upgrades
- Plumbing repairs
- Termite or pest treatment
- Accessibility improvements (ramps, grab bars, walk-in shower)
- Home hazard correction
- Property tax payments
Get Your Personalized Hawaiʻi Reverse Mortgage Estimate
FAQs: Single-Purpose Reverse Mortgage Hawaiʻi
1. What makes a single-purpose reverse mortgage different from other types?
Unlike HECM or jumbo reverse mortgages, single-purpose programs allow you to borrow money only for one approved use, such as home repairs or property taxes. Funds cannot be used for personal or general expenses.
2. Are single-purpose reverse mortgages available in every Hawaiʻi county?
No. Availability varies by county and year. Some counties may offer senior repair loans or property tax relief, while others may not provide any reverse mortgage-specific programs. Eligibility depends on local government budgets and nonprofit programs.
3. What can the funds be used for?
Eligible uses typically include:
- Home repairs
- Electrical, plumbing, or roofing fixes
- Property taxes
- Accessibility upgrades
- Health and safety improvements
The funds cannot be used for non-home-related expenses.
4. Do I have to repay a single-purpose reverse mortgage?
Yes, but repayment works similarly to a HECM. You typically repay the loan when:
- You move out of the home
- You sell the property
- Or you pass away
There are no monthly mortgage payments while you live in the home.
5. What are the age requirements?
Most single-purpose programs require borrowers to be 62 or older, similar to HECM and jumbo reverse mortgages.
6. Are single-purpose reverse mortgages easier to qualify for?
Often, yes.
These programs may have:
- Lower credit requirements
- Lower costs
- More flexible underwriting
- Income requirements for low- or moderate-income kupuna
However, availability is limited in Hawaiʻi.
7. How much money can I receive?
Single-purpose programs typically offer smaller loan amounts, usually enough to cover:
- Moderate repairs
- Accessibility improvements
- Delinquent property taxes
- Safety upgrades
For larger funds or flexible use, HECM or jumbo options are better.
8. Can I use a single-purpose reverse mortgage to pay off my existing mortgage?
No.
Single-purpose reverse mortgages cannot be used to pay off a traditional mortgage. They are strictly for the approved purpose set by the agency or nonprofit.
9. Is a single-purpose reverse mortgage safe?
Yes.
These programs are usually run by:
- County senior services
- Local housing agencies
- Nonprofit organizations
They exist to help kupuna stay in their homes and are typically low-risk, low-cost, and consumer-friendly.
10. How do I know whether a single-purpose reverse mortgage or HECM is right for me?
If you only need help with one specific issue—like fixing your roof or paying property taxes—a single-purpose loan might be ideal.
If you want more flexibility, larger payouts, or help with monthly expenses, a HECM or jumbo reverse mortgage may provide better support.
Your best first step is to compare your options with a quick estimate.
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AI Reverse Mortgage Hawaii
Clear Reverse Mortgage Guidance for Hawaii Seniors
Percy Ihara
Reverse Mortgage Specialist
NML#: 582944
Phone: +1(808)234-3117
Email: percy@c2hawaii.com
Address: Pauahi Tower, 1003 Bishop St Suite 2700-42, Honolulu, HI 96813
Serving ALL Hawaiian Islands: Kauai, Oahu, Molokai, Lanai, Maui, and Big Island