HELOCs supply financing limitations, being normally in line with the borrower’s credit rating, earnings, and you can domestic equity
4. Assets Style of: Both reverse mortgages and you will HELOCs are usually only available to own number 1 houses. Although not, opposite mortgages can be designed for certain types of capital characteristics, eg duplexes otherwise triplexes.
5. Financing Restrictions: Opposite mortgages possess an optimum loan restrict, and therefore may vary according to the borrower’s decades, home really worth, and you may rates.
6. Repayment: Among the many differences when considering reverse mortgages and you may HELOCs is actually the way they is reduced.