What is the difference between a Mortgage and a Reverse Mortgage? Difference between a mortgage and a reverse mortgage loan are as follows – A mortgage loan provides finances against the mortgage of an immovable asset. A reverse mortgage loan provides funds against a residential property’s equity build-up. The regular mortgage loan can be availed by mortgaging either a residential or a commercial property or machinery. But only a residential property, where the borrower resides, can be used for reverse mortgaging.