What are my options for receiving the loan proceeds?
In selecting how you will receive funds from your reverse mortgage, you have several options: • Lump Sum Payment: You can receive the maximum allowable balance all at once in a lump sum payment. Beware of using this option if you are on Medicaid, as it could create an asset that counts against Medicaid eligibility if not spent immediately. • Fixed Monthly Payments: Your banker or broker can set you up to receive a fixed monthly sum that can supplement other forms of income, giving you extra spending money each month. You have the option of a fixed monthly sum that lasts for a specific amount of time or, alternatively, a different amount for however long you live in the home. • Line of Credit: This tends to be the most popular option, which allows you to draw on your reverse mortgage on your own schedule— dry powder for when you need extra cash. • Combination: You can set up your loan to use any combination of the above options.
