By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed November 20, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: A tenure payout pays you equal monthly amounts for as long as you live in the home and keep the loan in good standing. A term payout pays larger equal monthly amounts for a set number of months that you choose. Either can be paired with a line of credit, called modified tenure or modified term. With an adjustable-rate HECM, you can usually switch plans later for a small fee.
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Federal rules (24 CFR 206.19) define five payout plans: term, tenure, line of credit, and modified term or modified tenure, which pair monthly payments with a line of credit. Borrowers can also take a lump sum at closing. Fixed-rate HECMs are generally lump-sum only.
Tenure payments continue as long as at least one borrower lives in the home as a primary residence and meets the loan obligations, even if the balance eventually exceeds the home’s value. They work much like an annuity backed by your home equity. Because they’re spread over a potentially long time, tenure payments are smaller than term payments.
Term payments are larger and end after the number of months you choose. People use them to bridge a gap, such as delaying Social Security, paying for a few years of care or covering the years before a pension starts. When the payments end, the loan stays in place and you keep living in the home.
A modified plan sets aside part of your money as a line of credit and pays the rest monthly. The unused line can grow over time (line of credit growth). It’s a popular middle ground: steady income plus a cushion for surprises.
Ask yourself three questions. Do I need steady income for life, or a lot of help for a few years? How much do I want in reserve for emergencies? Do I plan to stay in this home for the long haul? Your HUD counselor will go over the plans with you, and we’ll show you estimates for each one. If benefits like SSI matter to you, see our benefits guide.
The CFPB notes that adjustable-rate borrowers can change their payout plan for a nominal fee, for example by turning part of the remaining line into monthly payments. That flexibility is one reason many people start with a line of credit.
Whatever your question, these basics apply. A Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage most homeowners use. The youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity. Any existing mortgage is paid off at closing. Counseling with an independent HUD-approved counselor is required before you apply (HUD counselor search). The lender then reviews your income, credit and history of paying property charges.
No monthly mortgage payment is required. Interest and mortgage insurance are added to the loan balance, so it grows over time and your equity shrinks. You keep title, and you must keep paying property taxes, homeowners insurance and HOA dues and maintain the home. The loan is repaid when the last borrower, or an eligible non-borrowing spouse, sells, moves out permanently or passes away. A HECM is non-recourse: neither you nor your heirs will ever owe more than the home is worth when it is sold (CFPB). For higher-value homes, a proprietary jumbo reverse mortgage may be an option, but it isn’t FHA-insured and its terms differ. See how reverse mortgages work for a full walkthrough.
Bring this list to your HUD counseling session and to your call with Steven at (858) 775-1005.
Hyde Funding is a San Diego mortgage lender founded in 2015, with an office at 8996 Miramar Rd. Suite 250. Steven Hyde (NMLS #391380) will walk you through which payout plan matches your goals in plain English and compare HECM and proprietary reverse options. Your family or advisor is welcome on the call. Every HECM borrower first completes independent HUD-approved counseling (find a counselor on HUD.gov). Start with a free reverse mortgage consultation, read the reverse mortgage hub, or see reverse mortgages in San Diego.
Equal monthly payments for as long as you live in the home and meet the loan terms.
Equal monthly payments for a set number of months that you choose. They’re larger than tenure payments.
On an adjustable-rate HECM, usually yes, for a small fee, as long as funds remain.
No. They continue as long as you live there and meet the loan obligations.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.