Many states and cities offer deferred payment loan (DPL) programs. These programs provide loans to eligible persons typically for a restricted purpose such as payment of taxes or special assessments, home repairs or updates (especially energy efficiency updates), or to help fund closing costs for first time homebuyers.

Program eligibility and terms vary widely from jurisdction to jurisdiction. Typically, funds are loaned at a low (or zero) interest rate with principal and interest payment deferred until the home is sold or the borrower dies. While amounts available generally will be less than what can be obtained through a reverse mortgage, these programs are worth looking into as an alternative. Closing costs are minor compared to a standard reverse mortgage and if your needs are specific, a DPL may be the better choice.

Contact your city or county housing department, area agency or county office on aging, or the nearest community action or community development agency. Also contact your state housing finance agency. If these agencies don’t offer DPLs, they may know where to find them, or they may offer other low-cost home repair loans with easily affordable monthly payments.

A Few More Related Articles of Interest:

HECM Line of Credit Gains in Popularity Among Reverse Mortgage Borrowers

Reverse Annuity Mortgage - Clarifying the Term

More From Fidelity: Reasons Why Retirees Avoid Guaranteed Income Options

Reason 1: HELOC’s Require a Monthly Payment; Reverse Mortgages Don’t

How the new housing bill affects reverse mortgages.