Single-Disbursement Lump-Sum Payment Plan

In a reverse mortgage, an aging homeowner uses the equity they've built up in their house to secure money for retirement. The typical structure of these plans involves the homeowner receiving regular income. The goal here is to get monthly checks to help pay for regular retirement expenses (food, medicine, bingo, etc.).

The single disbursement lump sum payment works differently. Instead of regular income, the person receives a big chunk all at once. Just one large payment.

The setup doesn't provide regular income like a normal reverse mortgage. However, the structure is useful in situations where the homeowner has large debts to pay off, or other situations where getting a large amount of money all at once would be helpful...like impressing all the newly-widowed honeys down at the nursing home, by piling on the bling and driving the brand-new golf cart over to the early-bird special.