However, if you do not stay in the house for most of the year-- or if you're out of the residence for greater than 12 successive months because of a clinical concern-- your financing might come due. With a non-FHA-insured reverse home loan, lending institution terms might be different as well as could not provide as much protection. When you sell the house, you're expected to use the earnings to pay off your continuing to be financing equilibrium. However, if the residence costs more than you owe, you can keep the distinction and also utilize it for something else. FHA mortgage insurance coverage covers any distinction in between the prices of the residence and what you owe-- as long as the residence costs 95% of its evaluated value. So, also if your house costs much less than you owe, you don't have to worry about it as long as the prices is within the federal government's borders.