The benefits of HECM Reverse Mortgage vs HELOC

What is the difference between a HELOC and a HECM Loan?

The Ideal HELOC Substitute for Seniors

If you're 62 or older, plan on living in the same home for several years, and are interested in keeping more money in your pocket, a Home Equity Conversion Mortgage (HECM) may be a great option for you. Not only do HECM Loans provide eligible borrowers with the option to never make monthly mortgage payments, but they also offer low interest rates, flexible terms, no annual fees, and more. Check out the details below to learn more about HECM Loans and how they compare to Home Equity Line of Credit (HELOC) Loans.




No monthly mortgage payments are required

Monthly mortgage payments are required

Receiving Money

Money can be received through a credit line, lump sum, a steady stream of monthly payments, or a combination

Money can be received through a credit line only

Future credit line

Future credit line is guaranteed, credit line increases over time

Credit line may be cut or suspended by the lender, never increases regardless

Non-recourse loan protection

Non-recourse loan protection in place (meaning the borrower will never owe more than the home is worth)

No non-recourse feature

Lifetime rate cap

5-10% above initial rate

Up to 24% above the initial rate

If you are interested in learning more about a Home Equity Conversion Mortgage, just fill out some simple information in the form below and we’ll have a qualified Veritas Funding HECM specialist reach out to you as soon as possible.

We don't sell your information and it will be a one-on-one conversation between you and a licensed Veritas Funding Loan Officer.