Both let you access home equity — but they work very differently, qualify differently, and fit different situations. Here's how to think through which one actually fits yours.
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| Feature | Reverse Mortgage (HECM) | HELOC |
|---|---|---|
| Who it's for | Qualifying homeowners generally age 62+ | Any qualifying homeowner, no age requirement |
| Primary residence | Required for HECM | Not always required |
| Monthly payment | No traditional P&I payment required while obligations are met | Payments generally required during draw/repayment periods |
| Loan balance over time | Generally grows as proceeds and interest accrue | Balance reflects what you've drawn and repaid |
| Qualification basis | Age, home equity, financial assessment | Relies more heavily on income, credit, and debt obligations |
| Required counseling | Mandatory HUD-approved counseling | Not required |
| Repayment trigger | Sale, permanent move-out, or death of last borrower | Per loan terms — draw period, then repayment period |
Neither option is universally better. The right fit depends on your age, income, credit, monthly cash flow, how much equity you have, any existing mortgage balance, what you plan to use the funds for, and your long-term housing plans. A HELOC can offer lower upfront costs and flexibility for homeowners who want to keep making payments; a reverse mortgage can offer payment relief for eligible homeowners who want to stay in place long-term. This is exactly what a personal conversation with Trevor is for.
Trevor walks through both options against your actual numbers — no automated emails, no sales pressure.