Hi Donna,

The short answer is yes, but with real limitations - and in your situation, an actual physical inspection would be unusual.

What the loan documents say

Standard HECM loan documents do include an inspection provision.  The lender or its agent may enter and inspect the property, but only after giving you reasonable advance notice and stating a purpose related to their interest in the property.  They cannot show up unannounced.  They cannot inspect without a stated reason.  And the inspection must be conducted reasonably at a reasonable time.

The rules are different if a property is vacant or abandoned, or if the loan is in default.  In those situations, the lender can take steps to protect and preserve the property without the same notice requirements.  That does not apply to your situation.

What this looks like in practice

For an occupied, well-maintained home with current taxes and insurance, lender contact regarding occupancy is usually just a letter or a phone call asking you to confirm you still live there.  HECM borrowers are required to certify occupancy in writing once a year, and servicers will occasionally reach out to verify that.  A physical inspection of a home in good standing like yours would be uncommon.

If a lender or servicer is requesting access to your home, you have every right to ask in writing what the specific purpose is before agreeing to anything.  Once they provide a valid reason, you can work with them to schedule a time that is convenient for you.

If you received a request and are not sure what prompted it, start by calling your servicer directly.  It is likely a routine occupancy check and nothing more.

Reference: HUD Handbook 4000.1, Section VI - HECM Servicing requirements and borrower obligations.