The #1 FHA Reverse Mortgage Lender in Florida

The Florida HECM program offers significant benefits to numerous Florida homeowners. The borrower can leverage the program's advantage by meeting the FHA reverse mortgage loan criteria, allowing them to utilize their home's equity value as per their preferences.

Qualifying Requirements for an FHA Reverse Mortgage

Similar to other reverse mortgage loans, FHA HECM also mandates that borrowers be at least 62 years old. Moreover, they must either fully own their home or possess a small remaining balance to enable FHA HECM to pay off the remaining amount after approval of the HECM loan.

The property, whether a single or family unit, must have at least one unit occupied by the borrower, while most homes qualify provided they meet FHA requirements.

Distinct from traditional reverse mortgages, FHA HECM necessitates that the borrower undergo financial counseling from a designated counselor. One of the primary advantages of FHA HECM is its applicability to both FHA and non-FHA mortgage loans.

Nonetheless, borrowers cannot receive more than the home's total value, with the loan amount sanctioned based on the current interest rates, property's appraised value, and credit report.

It is vital to ensure that the lender is FHA approved and that all remaining balance is settled during the closing time of the new loan before applying for FHA HECM loan.

Florida Reverse Mortgage Facts

A reverse mortgage is a type of loan that allows homeowners who are 62 years of age or older to borrow against the equity in their home. Unlike traditional mortgages, where the borrower makes monthly payments to the lender, a reverse mortgage pays the homeowner.

This loan can be a useful tool for those who need additional income to support themselves in retirement, pay for healthcare expenses, or make home repairs.

According to data from the Mortgage Bankers Association as of December 2022, Florida is a popular state for reverse mortgages, with Miami, The Villages, Hialeah, Port Saint Lucie, Ocala, Saint Petersburg, Orlando, Boynton Beach, Boca Raton, and Jacksonville being the top ten cities for reverse mortgages in the state.

In Florida, there are 1,695,810 homeowners aged 62 and over who may be eligible for a reverse mortgage.

Over the last 12 months, 4,273 reverse mortgages were closed in the state, including 285 purchase reverse mortgages. This suggests that homeowners in Florida are taking advantage of this financial option to support their retirement lifestyle.

There are 339 lenders in Florida that provide reverse mortgage options to homeowners, giving borrowers a range of options to choose from. The average home value in Florida is $392,700, which can impact the amount that homeowners are eligible to borrow.

Overall, reverse mortgages can be a helpful tool for those looking for additional income in their retirement years, but it's important to carefully consider the pros and cons before making a decision.

HUD Approved Direct Lender

MakeFloridaYourHome is a reverse mortgage lender approved with the Department of Housing and Urban Development (HUD) to originate, underwrite and close the HUD Home Equity Conversion Mortgage (HECM). The HECM is HUD’s acronym for their reverse mortgage loan.

MakeFloridaYourHome originates in Florida and offers refinance loans, where borrowers already own their home and are looking to either pay off their existing loan and have no more monthly mortgage payment; or can help borrowers utilize their equity for other purposes if they have no existing loan or possibly a combination of both.

The team at MakeFloridaYourHome has extensive experience in jumbo or proprietary loan programs as well, and they are always looking for new products to offer to borrowers of high valued homes in the higher home priced markets that the HUD HECM may just not serve as well.

However, not all borrowers are better served with the jumbo programs as they typically offer much lower Principal Limits as they relate to values.

A seasoned originator can readily inform borrowers which program will best suit their needs and the positives and negatives of each so that the borrower can make an informed decision.

Homeowners aged 62 and above in all markets have seen that the reverse mortgage can be a very solid financial tool, and many are now seeking the reverse mortgage to augment their retirement plans and not so much the mortgage of last resort.

MakeFloridaYourHome offers a range of reverse mortgage options, from the elimination of existing mortgage payments to the line of credit that grows, to help borrowers utilize their homes to not only live comfortably in their family home, but to plan for their future as well.

Florida Lending Limits

Reverse mortgage lending limits are an important consideration for homeowners aged 62 and older who are considering this financial tool to enhance their retirement years. In Florida, there are over 1.5 million homeowners in this age group, making it a significant market for reverse mortgages.

The lending limit for the Home Equity Conversion Mortgage (HECM), the most popular type of reverse mortgage, is set by the Federal Housing Administration (FHA).

The HECM lending limit varies based on the county where the property is located, and in high-cost areas, the lending limit can be as high as $1,089,300. However, the average home value in Florida is $392,700, which is significantly lower than the HECM lending limit.

This means that for many homeowners in Florida, the HECM reverse mortgage may not provide enough access to their home equity to meet their financial needs.

However, there are other options available, such as proprietary reverse mortgages, which are not subject to the same lending limits as HECMs.

Proprietary reverse mortgages are offered by private lenders and may be suitable for homeowners with higher home values who need more access to their home equity.

When considering a reverse mortgage, it is important to work with a reputable lender who can help evaluate all available options and determine the best fit for each individual borrower's unique financial situation.

A knowledgeable lender can help homeowners understand the pros and cons of each type of reverse mortgage and make an informed decision about which one is right for them.

Who Is Eligible for a Reverse Mortgage?

There are certain criteria that need to be met in order to qualify. The first requirement is that at least one homeowner must be 62 years of age or older.

This is a fundamental aspect of a reverse mortgage, as the borrower is expected to have enough equity in their home to make it worthwhile to them.

Another key requirement is that the home must be owned and used as the primary residence of the borrower. This is because the home serves as collateral for the reverse mortgage, and the lender needs to ensure that the borrower is living in the home in order to repay the loan.

Additionally, there are minimal income and credit requirements that must be met, although these tend to be more flexible than traditional loans.

It is worth noting that the government has implemented regulations to protect seniors who opt for reverse mortgages. This means that there are guidelines in place to ensure that lenders are not taking advantage of borrowers.

Furthermore, research has shown that reverse mortgages can be a useful tool when planning for retirement. When used responsibly, a reverse mortgage can help extend the life of assets and provide a steady stream of income during retirement years.

In conclusion, to be eligible for a reverse mortgage in Florida, homeowners must meet certain criteria. They must be aged 62 or older, own and use the home as their primary residence, and meet minimal income and credit requirements.

Reverse Mortgage Payoff Options

A reverse mortgage provides borrowers with a unique set of repayment options. While there's no set timeline for repayment, it's important to understand the triggers that can initiate the process.

These triggers include selling the home, making another property your primary residence, or passing away. In the event of the borrower's death, the estate and heirs will be responsible for repaying the loan. Typically, they have up to 12 months to repay the loan, which can often be done by selling the home.

Many reverse mortgage contracts also include a provision that limits the amount due to the home's appraised value, even with interest, to protect heirs from having to pay more than the home is worth.

However, this provision only applies to HECM loans, which make up the majority of reverse mortgages. In addition to selling the home, borrowers also have other repayment options available to them.

One option is to refinance the reverse mortgage into a traditional mortgage. Another option is to take out a completely new mortgage to pay off the remaining balance. In some cases, borrowers may choose to provide a deed in lieu of foreclosure to avoid the foreclosure process.

It's important to note that each of these repayment options has its own set of pros and cons, and borrowers should carefully consider their choices and consult with a financial advisor before making any decisions.

Ultimately, the repayment options available with a reverse mortgage provide borrowers with flexibility and choice, allowing them to select the option that best fits their unique financial circumstances.

The Benefits of a Reverse Mortgage in Florida

If you're considering a reverse mortgage in Florida, you may be wondering what benefits you can expect. Here are some advantages you could experience:

• You can stay in your home for as long as you want - One of the most significant benefits of a reverse mortgage is that it allows you to stay in your home for as long as you want. Unlike a traditional mortgage, which requires regular payments, you don't need to repay the loan until you leave your home.

• Funds from reverse mortgages are tax-exempt - Another advantage of a reverse mortgage is that the funds you receive are tax-exempt. This means that you won't have to pay taxes on the money you receive, giving you more cash to use as you see fit.

• You’ll have security in the housing market - Reverse mortgages are based on the equity in your home, which means that they're not affected by fluctuations in the housing market. This can give you peace of mind, knowing that you have a stable source of income that won't be affected by changes in home values.

• You’ll have no monthly mortgage payments - Unlike a traditional mortgage, you won't have to make monthly payments on a reverse mortgage. This can be a huge relief for seniors who may be living on a fixed income.

• You can enjoy loan flexibility - With a reverse mortgage, you have the flexibility to use the funds however you see fit. Whether you need to cover medical expenses, make home improvements, or take a dream vacation, the money is yours to use as you need.

• Your homeownership and heirs are not affected by the loan - With a reverse mortgage, you retain ownership of your home, and your heirs are not responsible for repaying the loan. If the loan balance exceeds the value of your home, the Federal Housing Administration (FHA) insurance will cover the difference, so your heirs won't be left with any debt.

Learn More with MakeFloridaYourHome

Are you interested in exploring your options with a reverse mortgage in Florida? Don't go it alone! MakeFloridaYourHome is here to help.

Our experienced team can guide you through the process and help you find the right solution for your unique financial situation. Contact us today to schedule a consultation and take the first step towards financial peace of mind.