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What Are the Options a Borrower Has For Drawing Funds on a HECM?
What Are the Options a Borrower Has For Drawing Funds on a HECM?

They can draw cash at closing, they can receive a monthly payment for a specified period or for as long as they reside in the house, and they can take a credit line upon which they can draw at their discretion at any future time. In addition, they can combine options, such as a cash withdrawal plus a monthly payment. They can also switch from one option to another, converting a monthly payment plan into a credit line, for example, or the reverse.

This flexibility allows HECMs to be used to meet a large variety of senior needs, as indicated in Step 2.