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Homeowners who have spent years paying for their houses may have their houses pay for them. That is the idea behind a reverse mortgage which enables struggling seniors to get equity out of their home in one lump sum, regular monthly payments or a revolving line of credit.

While the homeowner needs to demonstrate a level of need, Jason Levy, the chief executive officer of Guardian First Funding, says a reverse mortgage is not a sign of failure.

"An ideal candidate is someone who is having a hard time making ends meet, so to speak, but has the equity in their home," says Levy. "It's not a coincidence that that equity is there. They built it over time and that's an act of success."

Seniors must continue to pay their taxes, maintain homeowners insurance and keep the house in good shape. Unlike a home equity line of credit, they don't have to make any payments on the reverse mortgage.

Once the homeowner passes away, or sells the house, the loan is repaid out of the sale of the home. It will decrease the value of the estate, but Levy says it is a matter of priorities.

"Is your priority to have more equity at the end of the day but struggle to heat yourself in the winter or have air conditioning in the summer?" says Levy "It gives that senior the discretionary income that they need to live a much better lifestyle."

While for some seniors a reverse mortgage may be key to staying in their home, there are things to consider, like interest which continues to accrue. Unlike a regular mortgage, where homeowners pay a balance down, the reverse mortgage starts at a certain amount and then the balance goes up.

In addition, there are fees. With government insured loans, known as HECMs, a lender can charge up to three percent of the home value, up to $6,000, in origination fees. The FHA also charges an additional two percent for the mortgage insurance premium. There may also be a monthly servicing fee of up to $35 a month, which again, is not paid by the homeowner, but instead gets wrapped into the balance of the loan.

Over time, all of this can add up, and while that may not effect you, Josh Zinner, the co-director of the Neighborhood Economic Development Advocacy Project, says it could impact any adult children who may wish to remain in the house.

"It's very hard for any heirs to the property, when that senior passes away, to stay in the home, because what they have to do is pay off that very high mortgage balance in order to stay in the home," he says.

To ensure seniors are protected, the federal government requires borrowers get counseling from a nonprofit agency. To find a lender or counselor, visit the Web site of the Department of Housing and Urban Development at www.hud.gov.