how hecms work

HECM Payment Plans

You can have the money from a HECM paid to you through one of six payment options. Which of these is a payment arrangement you can choose?

1. Tenure - Receive monthly payments as long as you or another owner lives in the home as a principal residence.
2. Term - Receive equal monthly payments for a fixed number of months.
3. Line of Credit - Receive unscheduled payment installments as you need them until the loan monies are used up.

ALL of these are possible payment methods. You also may select a “modified tenure” payment plan, which combines a line of credit with scheduled monthly payments for as long as you live in the home. Or you may choose a “modified term” payment plan, which combines a line of credit with monthly payments for a fixed period of time. You may also choose a Single Lump Sum Payment option.