With a home equity loan, you receive the money up-front and pay it back in monthly installments. With a reverse mortgage, you can receive the money as a lump sum or in monthly payments, and then you must pay it back once you sell the home, move or pass away.
These loans also have different requirements to qualify. For example, there is no minimum credit score required for a reverse mortgage. However, with both loan types, you’ll be required to pay your property taxes and insurance.