Q: Reverse Mortgages versus Home Equity Loans A: Both a reverse mortgage and a home equity loan use the equity you have built up in your home to provide you with readily available cash. They differ in that with a home equity loan, you must qualify based on your income and credit history and make regular monthly payments of principal and interest. With a reverse mortgage, you do not have to repay the loan for as long as you maintain the home as your primary residence.