The reverse mortgage has greater flexibility than any other loan currently being offered such as equity loans or HELOC's.  It also requires that borrowers pay FHA (HUD) mortgage insurance on the HECM program.  A HELOC or Home Equity Line of Credit is a bank product that is relatively inexpensive and quick to obtain.  However, like most loans, there is a tougher standard to qualify for the loan underwriting and it is not as friendly for seniors on a fixed budget. Borrowers must qualify for a HELOC with traditional income and debt ratios that often require them to make monthly payments of at least interest only early in the term of the loan and then may increase up to three times the amount of the early payment to include principal payments as well later in the loan during the repayment period. It is at this time that the lender may no longer allow borrowers to take additional draws from the line of credit and as is the case with senior borrowers especially, their income may have decreased from the time they originally obtained the loan making it even harder to repay it in the remaining term.  The lender can also freeze, lower the amount available or close the HELOC at any time according to their own discretion. The reverse mortgage is also available as a line of credit, but the line is guaranteed by HUD.  The lender cannot lower or close it at will.  In fact, the line of credit grows on the unused portion monthly and borrowers can receive more funds available later when needed rather than less at the lender’s discretion. Since the loan is insured, if anything were ever to happen to the lender, the loan would be assigned to a new lender or HUD and the loan would remain in effect as written.