The 5 Ways to Receive Your Money
Lump Sum, Monthly, Line of Credit, or a Mix
JP Dauber · Licensed HECM Specialist
NMLS# 386298 · Published August 5, 2026
Option 1: the lump sum
A single lump sum gives you all your available proceeds at once. It is only available on a fixed-rate HECM, and it is best when you have a specific large need — paying off an existing mortgage, funding a major expense, or clearing debt.
The downside: interest accrues on the full balance from day one, and you lose the flexibility and growth of a line of credit.
Option 2: tenure payments
Tenure pays you an equal amount every month for as long as at least one borrower lives in the home as a primary residence. It functions like a personal pension funded by your equity.
The payments do not stop because you have borrowed a certain amount — they continue as long as you meet the occupancy and loan terms.
Option 3: term payments
Term pays equal monthly amounts for a fixed number of years that you choose. Because the payout is compressed into a shorter window, the monthly amount is larger than tenure.
Term is useful for bridging a specific gap — for example, covering income until you delay Social Security to a higher benefit.
Key fact
Tenure payments last as long as you live in the home — they do not run out. Term payments stop at the end of the period you chose. Tenure trades a smaller monthly check for lifetime security; term trades a larger check for a fixed end date.
Option 4: the line of credit
With a line of credit, you take money only when you need it and only pay interest on what you have drawn. The unused portion grows every year, which means waiting can increase your future borrowing power.
This is the most popular choice on adjustable-rate HECMs, and it is the foundation of the standby reserve strategy financial planners recommend.
Option 5: a modified plan
A modified plan combines a line of credit with monthly tenure or term payments. You get steady income plus a reserve you can tap for surprises.
Which option fits depends on your goals — predictable income, a flexible reserve, or a one-time need. Run the numbers or reach out and I will model each payout for your situation.
Keep reading
HECM Line of Credit Growth Rate Explained →
Why your unused credit line grows
Fixed vs. Adjustable Rate Reverse Mortgage →
Why most borrowers choose adjustable
Using a HECM Line of Credit as a Safety Net →
The standby reserve strategy
Delay Social Security With a Reverse Mortgage →
Bridge income to a higher benefit
The complete guide
How a Reverse Mortgage Works →
Tenure vs. Term Payments: Choosing Your Monthly Option →
Tenure pays you for life but smaller; term pays more but stops. Here's how to choose between the two monthly reverse mortgage payment plans.
What Happens During HECM Counseling →
Every reverse mortgage requires independent HUD-approved counseling before you apply. Here's what the session covers, what it costs, and how to prepare.
What Actually Happens at a Reverse Mortgage Closing →
From signing to the 3-day right of rescission to receiving your funds — here's exactly what happens at a reverse mortgage closing and when the money arrives.
Documents Needed for a Reverse Mortgage Application →
Less paperwork than a traditional mortgage. Here's exactly what you'll need.