NatEquity Analysis Compares Senior Home Equity Products

NatEquity Inc. released an analysis this week comparing various home equity products available to homeowners aged 62 and older. The analysis, intended for mortgage industry professionals and shared with Reverse Mortgage Daily (RMD), examines traditional reverse mortgages, senior home equity lines of credit (HELOCs), home equity investments (HEIs), and NatEquity's proprietary HouseMoney product. It details differences in product structures, costs, repayment terms, servicing, investor considerations, and long-term viability.

The analysis comes as lenders and investors increasingly explore alternatives to federally insured Home Equity Conversion Mortgages (HECMs). Proprietary products surpassed HECMs in funded volume during the first quarter of 2026. According to the analysis, conducted by NatEquity CEO Peter Mazonas, HECMs, introduced in the late 1980s and administered by the U.S. Department of Housing and Urban Development (HUD), remain the most established senior home equity product.

Senior HELOCs and HEIs gained prominence after the 2008 financial crisis, offering homeowners ways to access housing wealth outside of federal programs. The comparison highlights how each product allows access to equity. HECMs typically provide access through a lump sum, monthly payments, or a line of credit, with repayment deferred until the borrower's death or permanent departure from the home. Senior HELOCs offer revolving credit access, often with variable interest rates.

Home equity investments generally provide an upfront payment in exchange for a share of future home price appreciation. NatEquity's HouseMoney product combines an upfront advance with monthly payments that are adjusted based on changes in the cost of living. Mazonas noted that these product structures can influence the amount of equity remaining for borrowers and their heirs over time.