You will have three business days after signing to cancel the loan. (This is known as your "Right of Rescission" period.)
When the three business days expire, the loan funds are disbursed. You may then access your funds in the form of whatever payment option you decided. All existing debt on your home is paid off and a new lien is placed on the home. You can now use your loan proceeds for whatever you want.
The only exception to a right of rescission is the HECM for Purchase reverse mortgage. There is no rescission option on a purchase of a new home.
You can choose to receive the money from a reverse mortgage all at once as a lump sum, in fixed monthly payments either for a set term or for as long as you live in the home, as a line of credit, or as a combination of these.
If you select fixed payments, you loan Servicer will disburse them on the first business day of each month.
You have the right to change your payment plan at any time. Just request a new Payment Plan Agreement form from the Servicer. Changes usually have a small administrative fee of no more than $20. Once the agreement is executed, the new payment plan will go into effect the first business day of the next month.
Springwater Capital does not service your loan nor handle disbursements. You will receive documentation by mail from the servicer about how to make changes or request funds.