Principal Residence (applicable to HECMs only)

Principal Residence (applicable to HECMs only)

Principal Residence refers to the dwelling where the Borrower and, if applicable, an NBS maintain their permanent place of abode, and typically spend the majority of the calendar year. A person may have only one Principal Residence at any one time and the Property is considered to be the Principal Residence: • of any Borrower who is temporarily in a health care institution provided the Borrower’s confinement to a health care institution does not exceed 12 consecutive months; • of any NBS who is temporarily in a health care institution, as long as the Property is the Principal Residence of their Borrower spouse, who physically resides in the Property; • of any NBS who occupies the property as their Principal Residence, when the Borrower resides in a health care institution for a length of time; and • during a Deferral Period of the NBS, who is temporarily in a health care institution, provided the Eligible NBS physically occupied the Property immediately prior to entering the health care institution and such confinement does not exceed 12 consecutive months.