Most people don't realize that President Reagan was instrumental in creating today's Reverse Mortgage.  While President, he was smart enough to see that Social Security was not going to be the answer for providing seniors the cash they would need to meet their expenses.  The reverse mortgage used prudently and in the right situation can create a very beneficial situation.  The good news it can now be used on home purchases vs just on your existing home.  Here is an January, 2010 Washington Post article that get much more specific. http://www.washingtonpost.com/wp-dyn/content/article/2010/01/21/AR2010012105405.html