Reverse mortgages are divided into three types which are:

Single purpose reverse mortgage given by local government agencies, some state and non profit organizations. Their costs are normally low and not available in all places. The borrower has to stumpy to moderate income and a particular use for the fund like property taxes, health expenses and home development.

Home equity exchange mortgages (HECM): They are backed by the US Department of Housing and Urban Development (HUD). The initial requirement is for you to meet with a counselor from sovereign government accepted housing analysis agency. The HECM loans might be costly due to up-front if you opt to stay in your house for a short time.

Proprietary reverse mortgages are the personal loans that only the company that develops them backs them. The condition here is that you have to stay in your personal home and they are normally tax free. They don’t tamper with your medical benefits or social security.

A balance sheet is basically a financial statement listing the nature and amount of a company’s assets, liabilities and equity at any given time. Every type of business requires the preparation off a balance sheet; therefore it is important to know the most important terms referred to in a balance sheet.

Assets and liabilities refer to the items that belong to the company and those that are likely to incur the company expenses. There are also non-current assets which are those assets bought with the intention of remaining in use over a long period of time. Capital is usually the company shares; either preference or ordinary, while reserves are profits made by the business but have not been shared among shareholders.
Other common terms are income and expenses where income is any money coming into the company, while expenses are the total amount that the company spends in their daily routine of operations.