What Does “Primary Residence” Mean When Getting a Reverse Mortgage?
When exploring a reverse mortgage, one requirement matters more than almost any other: the home must be your primary residence.
This question comes up often for homeowners who own more than one property, have recently inherited a home, or split time between locations. Understanding how primary residence is defined can help avoid confusion and delays during the reverse mortgage process.
For a reverse mortgage, your primary residence is the home where you:
Live most of the year
Maintain your permanent residence
Intend to continue living going forward
You must be able to prove that you occupy the home as your primary residence at the time of application and again at closing. Borrowers are also required to sign an Occupancy Certification confirming this.
Reverse mortgages are not available for:
Second homes
Vacation properties
Investment or rental properties
If a borrower is not living in the home when applying or at closing, the loan cannot proceed under reverse mortgage guidelines.
Why Occupancy Proof Is Required
Owner occupancy is a foundational rule of reverse mortgages and is closely reviewed by lenders. Residency issues are the most common source of loan denials and delays, which is why underwriters require clear documentation showing that the borrower actually lives in the home.
This is not meant to be burdensome. It protects borrowers and ensures the program is used as intended.
Documents Commonly Used to Verify Occupancy
To confirm primary residence, lenders typically require at least three documents that show the subject property address. These may include:
Driver’s license
Social Security award letter
Social Security Administration record reflecting the current address
Most recent two months of bank statements
Most recent tax return or tax statement
Current mortgage statement
Homeowners insurance policy showing the home as owner-occupied
Auto insurance policy
Most recent two months of utility bills
Voter registration card or vehicle registration
Cable or phone bill
Proof of Homestead exemption for the property
The lender may request additional documentation if needed to fully confirm occupancy.
What About Temporary Absences?
Temporary absences, such as medical stays or short-term travel, are generally acceptable as long as there is clear intent to return and continue living in the home as the primary residence. Long-term or indefinite absences may require additional review.
The Bottom Line
The home must be your primary residence
Proof of occupancy is required at application and again at closing
Second homes and investment properties are not eligible
Clear documentation helps prevent delays
If your living situation is changing or you are unsure whether a property qualifies as your primary residence, it’s best to address that early in the conversation. Clarity upfront makes the process smoother for everyone involved.
What to Do When You Have a Client or a Case?
- Go to www.HousingWealthPro.com and request a Housing Wealth Illustration. Give Details in the “Notes” Section including the clients’ phone # if they would like a Housing Wealth Assessment. You can also
- Schedule a Time to Speak with Me: Click Here
Related Articles:
- How Did Reverse Mortgages Get Such a Bad Reputation?
- 37 Frequently Asked Questions About Reverse Mortgages
- Why Waiting to Secure a Reverse Mortgage Could be a Costly Mistake
The content of this blog is for financial advisors and professionals only and is not intended for consumer use. Names, cases, and scenarios are fictionalized for illustrative purposes. The opinions expressed here are those of the author alone and do not reflect the views of any affiliated entities or individuals. Don Graves, NMLS #142667.
