Quick answer
A "reverse HELOC" is not an official product. It usually means a reverse mortgage line of credit. Like a HELOC, you draw when you need funds and pay interest only on what you use. Unlike a HELOC, no monthly mortgage payment is required, you must be at least 62 for a HECM (55 for some non-FHA programs, where state law allows), the unused line can grow over time, and upfront costs are higher. You must still pay property taxes and insurance and live in the home.
What people mean by "reverse HELOC"
A HELOC is a line of credit secured by your home with a required monthly payment. A reverse mortgage is a loan for older homeowners with no required monthly mortgage payment; the balance is repaid when the home is sold or the last borrower leaves. Put the two ideas together, a line of credit with no monthly payment, and you get what most people call a reverse HELOC: the reverse mortgage line of credit.
The most common version is the federally insured Home Equity Conversion Mortgage (HECM). Some private (non-FHA) reverse mortgages also offer a line of credit.
HECM line of credit vs. HELOC, side by side
| Item | HELOC | HECM line of credit |
|---|---|---|
| Minimum age | 18 | 62 (some non-FHA programs from 55, where state law allows) |
| Monthly mortgage payment | Required. Often interest-only during the draw period, then principal and interest. | None required. You may pay if you choose. |
| Qualifying | Income, credit score and debt-to-income | Financial assessment focused on paying taxes and insurance; counseling required |
| Draw window | Usually a 10-year draw period, then repayment | Open as long as you live in the home and meet the loan terms |
| Unused line | Stays the same; a lender can freeze or reduce it if conditions change | Grows over time, and cannot be reduced while you meet the loan terms |
| Upfront cost | Low; sometimes little or nothing | Higher: FHA mortgage insurance of 2% of the home value counted, plus closing costs |
| Home value counted | Up to the program's CLTV limit | Up to $1,249,125 for a HECM in 2026 |
| When it is repaid | Monthly, over the repayment period | When you sell, move out or pass away |
| Owing more than the home is worth | You are responsible for the balance | Non-recourse: you or your heirs never owe more than the home is worth when it is sold |
Summary as of October 2026. Program terms vary; non-FHA programs set their own rules.
The feature a HELOC does not have: line growth
The unused part of a HECM line of credit grows each month at the same rate being charged on the loan balance. That is not interest paid to you. It is an increase in how much you can borrow later.
Example: a $200,000 unused line growing at an illustrative 7% a year would be about $280,000 after five years and about $393,000 after ten, if nothing is drawn. Example only; the actual growth rate moves with your loan's interest rate.
This is why some retirees open a HECM line early and leave it untouched as a standby reserve. More in how the reverse mortgage line of credit grows.
Which one fits you?
A HELOC tends to fit if you:
- Are under 62 (or under 55), or still working with solid income.
- Can comfortably make a monthly payment.
- Want the lowest upfront cost and plan to repay within a few years.
A reverse mortgage line tends to fit if you:
- Are 62 or older (55 or older for some non-FHA programs) and plan to stay in the home.
- Want access to equity without adding a monthly payment in retirement.
- Want a line that cannot be frozen in a downturn and that grows while unused.
- Are comfortable with higher upfront costs in exchange for those features.
We originate both, so the comparison is not a sales pitch for one side. See HELOC vs. reverse mortgage for the full comparison, the reverse mortgage requirements, or run your numbers on the HECM calculator.
What you still owe on a reverse mortgage
"No monthly payment" does not mean no obligations. With any reverse mortgage you must:
- Live in the home as your primary residence.
- Pay property taxes, homeowners insurance and any HOA dues on time.
- Keep the home in reasonable repair.
Falling behind on these can put the loan in default, the same way missing payments would on a HELOC. Interest also adds to the balance over time, which reduces the equity left for you or your heirs.
FAQ
Is there such a thing as a reverse HELOC?
Not by that name. The term usually refers to a reverse mortgage line of credit, most often the FHA-insured Home Equity Conversion Mortgage (HECM). It lets homeowners 62 and older draw on home equity as needed with no required monthly mortgage payment.
What is the difference between a HELOC and a HECM?
A HELOC requires monthly payments, qualifies you on income and credit, and usually has a 10-year draw period. A HECM is a reverse mortgage for homeowners 62 and older with no required monthly mortgage payment, an unused line that grows over time, higher upfront costs including FHA mortgage insurance, and repayment when you sell, move out or pass away.
Can a reverse mortgage line of credit be frozen?
A HECM line of credit cannot be reduced or frozen because of market conditions as long as you meet the loan terms: living in the home and keeping up with property taxes, insurance and maintenance. A HELOC can be frozen or reduced by the lender if home values fall or your finances change.
Can I have a HELOC and a reverse mortgage at the same time?
Generally no. A reverse mortgage must be in first lien position, so an existing mortgage or HELOC is paid off at closing, usually from the reverse mortgage proceeds.
Talk to a licensed HELOC lender
Get a rate estimate or ask a question — direct answer from Audi Garner, Branch Manager & Broker (NMLS #190235). No sales pitch. No hard credit pull.
Get a 60-second rate estimate
Soft pull only. Written quote emailed within 1 business day.
Ask Audi a HELOC question
Direct answer from a licensed originator. Usually within 1 business day.
Keep reading
HELOC vs. Reverse Mortgage
The full comparison, including costs and heirs.
How the Reverse Mortgage Line Grows
The growth feature explained with examples.
Reverse Mortgage Requirements
Age, equity, property and counseling rules.
HECM Calculator
Estimate what a reverse mortgage could provide.
HELOC for Seniors
Qualifying on retirement income.
Open a HELOC Before You Retire?
Why timing matters for qualifying.