About Retirement Planning has a step-by-step walkthrough of the reverse mortgage process. If you haven't paid attention, you have a ton of flexibility in deciding how you will get the proceeds. Be very careful since some decisions may affect your eligibility in certain government assistance programs.

1. When applying for a reverse mortgage, all owners must apply and sign the papers. The applicants must be at least 62 years old, own the home, and must generally live in the dwelling. One note though, mobile homes are usually not eligible for reverse mortgages.

2. A borrower must seek counseling from a HUD approved counceling agency prior to applying for a reverse mortgage. This counseling is mandatory. During this meeting, the process is explained and a determination of eligibility is made.

3. A borrower can request regular monthly payments, a credit line, or a lump sum distribution of cash. A combination of these payment plans can also be requested.

4. Typically, a reverse mortgage loan requires no repayment for as long as you live in your home. If the home is sold, the borrower moves, or the last living borrower dies, the loan must be repaid. Usually the home is sold to repay the mortgage.