Listen To This Article
Here’s a quick exercise I often use with industry professionals: Ask a room full of loan originators, “How long can a borrower be away from their home before a reverse mortgage becomes due?”
The answers come quickly and confidently: six months, 183 days, more than half the year, twelve months, twelve consecutive months. And yet, none of those answers are technically correct.
The answer is: it depends. Occupancy is one of the most misunderstood aspects of the reverse mortgage program. Unfortunately, that confusion often spills over to homeowners, many of whom are incorrectly told that extended travel, seasonal living, or time away from home will automatically trigger loan maturity. The truth is more nuanced, and far more flexible, than most people realize.
WHAT DOES “OCCUPANCY” MEAN?
A reverse mortgage, specifically the FHA-insured Home Equity Conversion Mortgage (HECM), is only available on a borrower’s principal residence. HUD defines a principal residence as the home where the borrower maintains a permanent place of abode and typically spends the majority of the calendar year.
That single word “typically” matters. A lot. HUD does not require borrowers to be in their home every day, nor does it impose a rigid “six-month rule,” despite how often that phrase gets repeated. What matters is intent, pattern, and documentation—not arbitrary day-counting.
Each year, borrowers must complete an occupancy certification confirming the home remains their principal residence. As long as at least one borrower continues to meet that requirement, the loan remains in good standing. Temporary absences for travel, visiting family, or even medical care do not automatically cause the loan to mature.
THE 2-MONTH RULE
Where borrowers can get into trouble isn’t travel. It’s silence. HUD guidelines require borrowers to notify their loan servicer if they plan to be away from the home for more than two consecutive months. This communication requirement exists to prevent misunderstandings about whether the borrower’s principal residence has changed. In practice, many occupancy issues arise not from being gone, but from failing to inform the servicer.
THE 12-MONTH RULE
A rule that is frequently misapplied is the 12-month absence guideline. This standard ONLY applies when a borrower is absent due to physical or mental illness such as living in a nursing home or assisted living facility.
If the last occupying borrower fails to reside in the home for more than 12 consecutive months for health-related reasons, the loan will typically become due and payable. This rule does not apply to healthy borrowers who are traveling, volunteering, or living seasonally elsewhere. But it does call into question whether the home is the borrower’s principal residence.
ADVISING HOMEOWNERS THE RIGHT WAY
For snowbirds, RV travelers, and retirees pursuing extended service or volunteer opportunities, the guidance is consistent and practical: maintain the home, pay property charges, avoid establishing another principal residence, and keep the servicer informed.
When managed properly, a reverse mortgage is designed to support, not restrict, an active and flexible retirement.
Here’s the messaging I recommend for homeowners planning extended travel:
- Notify your servicer of travel plans exceeding two months
- Provide a written letter of explanation
- Arrange ongoing property maintenance
- Establish an alternate contact for emergencies
- Avoid establishing another principal residence
- Ensure all property charges are paid on time
- Forward and return annual occupancy certifications promptly
I think you’ll find that understanding the true occupancy requirements will allow homeowners to separate myth from fact and use their home equity with confidence, clarity, and peace of mind.