| HECM (Reverse Mortgage) | HELOC (Home Equity Line Of Credit) |
| Lien on Property | Lien On Property |
| Borrower Retains Ownership | Borrower Retains Ownership |
| Minimum Age 62 No Income or credit Qualification | All Ages But Must Meet Income And Credit Worthiness |
| Insured Loan Through FHA With Capped Variable Interest Rate | Private Sector Products With Uncapped and Capped Adjustable Interest Rate |
| Protection From Other Assets Being Attached in Case of Inadequate Equity at End Of Loan | No Protection |
| If Option Chosen – Could Receive Income For Life – As Long As Borrower Lives In Primary Residence | Limited Income |
| No Repayment Required As Long As Borrower Remains In Home. | Monthly Repayment Required If Not Made – Possible Default Or Worse Foreclosure |
| Unused Funds Grow in a Line Of Credit | Unused Funds Remain Stagnant No Growth |
| Has Built In Customer Protection Program That Requires Counseling | No Consumer Protection Program |
| Extremely Flexible Program | The Low Cost can be attractive but be aware of the limitations of most HELOCs |