In the context of a reverse mortgage insured by the FHA, what does "permanently leaves home" imply?

In the context of a reverse mortgage insured by the Federal Housing Administration (FHA), the phrase "permanently leaves home" specifically refers to a situation where the homeowner has been absent from the property for 365 consecutive days. This definition is critical because one of the stipulations of a reverse mortgage is that the homeowner must continue to occupy the home as their principal residence.

If a homeowner leaves the property and does not return for a full year, the reverse mortgage lender may consider this as the homeowner having permanently left the home. This can trigger the due and payable clause of the reverse mortgage, resulting in the loan balance becoming due. The 365-day timeframe provides a clear, unambiguous marker to determine when a homeowner is no longer residing in the home, which is essential for loan servicing and management. Understanding this timeframe helps borrowers recognize the importance of maintaining residence in the property to avoid complications with their reverse mortgage arrangement.