Reverse Mortgages in Florida
If you're 62 or older, your Florida home can work for you. Turn your equity into tax-free cash with no monthly mortgage payment — or use a reverse mortgage to buy your next home in Florida, keeping more of your savings in the bank.
Reverse Mortgage at a Glance
Most reverse mortgages are Home Equity Conversion Mortgages (HECMs), insured by the FHA. Instead of you paying the lender each month, the lender pays you, and the loan is repaid when you sell, move out, or pass away.
| Feature | HECM Reverse Mortgage |
|---|---|
| Minimum Age | 62 (youngest borrower on the loan) |
| Home | Your primary residence — you need to live there most of the year |
| Equity | Substantial equity; any existing mortgage is paid off from the proceeds |
| Monthly Mortgage Payment | None required — you can pay voluntarily |
| 2026 Lending Limit | $1,249,125 maximum home value used in the calculation (HECM, nationwide) |
| How You Get Paid | Line of credit, monthly payments, lump sum (fixed rate), or a mix |
| Your Obligations | Pay property taxes, homeowners insurance, and any HOA dues, and keep the home in good repair |
| Counseling | A session with a HUD-approved counselor is required before you apply |
| Property Types | Single-family, 2–4 units you live in, FHA-approved condos, and qualifying manufactured homes |
Three Ways to Use a Reverse Mortgage
Florida homeowners use reverse mortgages in three main ways. The right one depends on your home's value and whether you're staying or moving.
| Option | Best For | How It Works |
|---|---|---|
| HECM (traditional) | Staying in your current home | Pays off any existing mortgage, then gives you a line of credit, monthly payments, or a lump sum. An unused line of credit grows over time. |
| HECM for Purchase | Moving to Florida or downsizing | Buy a new primary residence with one down payment and no monthly mortgage payment afterward. The rest of your savings stays invested. |
| Jumbo (proprietary) reverse | Homes worth more than the HECM limit | Private programs that can lend on higher-value homes, and some accept condos that aren't FHA-approved. Terms vary by lender. |
Florida Situations We Help With
Retiring to Florida
Selling up north? HECM for Purchase lets you buy your Florida home with roughly 45%–65% down, depending on your age, and no mortgage payment afterward.
Downsizing to a Villa or Condo
Move to a smaller home or a 55+ community and keep more cash from your sale. Condos need to be FHA-approved for a HECM, or financed with a jumbo reverse program.
Paying Off Your Current Mortgage
A reverse mortgage can retire your existing mortgage so you no longer have a monthly payment, freeing up your Social Security and retirement income.
Higher-Value Coastal Homes
Homes in Naples, Palm Beach, Sarasota, or the Keys often exceed the HECM limit. Jumbo reverse mortgages can unlock more of that equity.
A Younger Spouse
If your spouse is under 62, they can often be listed as an eligible non-borrowing spouse, which lets them stay in the home if you pass away first.
A Standby Line of Credit
Open a HECM line of credit early and leave it untouched. The available amount grows over time and can cover hurricane repairs, healthcare, or market downturns.
What It Costs
Most reverse mortgage costs are paid from the loan itself, not out of pocket. See our full Florida reverse mortgage closing costs guide for a detailed breakdown.
| Cost | HECM Amount |
|---|---|
| Upfront mortgage insurance (MIP) | 2% of the home's value, up to the $1,249,125 limit |
| Annual mortgage insurance | 0.5% of the loan balance per year |
| Origination fee | Greater of $2,500 or 2% of the first $200,000 plus 1% above that, capped at $6,000 |
| HUD counseling | Typically $125–$200, often the only out-of-pocket cost |
| Third-party costs | Appraisal, title insurance, recording, and Florida taxes, similar to other mortgages |
What's Different in Florida
Florida's retirees, weather, and condo laws make a few reverse mortgage details especially important here.
| Florida Factor | What It Means for You |
|---|---|
| Homestead exemption stays | You still own your home, so you keep your homestead exemption and any senior property tax exemptions. |
| Insurance is your responsibility | Keeping homeowners, wind, and (in flood zones) flood insurance in force is a loan requirement. Rising Florida premiums are part of the lender's financial review, and a set-aside can be built in to cover them. |
| Snowbirds | The home must be your primary residence. If you split the year between states, Florida needs to be where you live most of the year. |
| Condo safety laws | Post-Surfside inspections and reserve rules have changed which buildings are FHA-approved, and special assessments count as property charges. Check your building early, and see our Florida condo financing guide. |
| Hurricane repairs | You're responsible for keeping the home in good repair. A HECM line of credit can be a ready source of funds after a storm. |
Thinking About Your Heirs?
Heirs are never personally responsible for more than the home is worth, and they can keep the home by paying off the loan or 95% of its appraised value, whichever is less. Our free book explains how to use a reverse mortgage to protect family wealth.
Get The Reverse Mortgage Inheritance StrategyHow to Get a Reverse Mortgage in Florida
- 1
Talk Through Your Goals
Staying, moving, or buying? We'll estimate what you could receive and compare HECM, HECM for Purchase, and jumbo options.
- 2
Complete HUD Counseling
Meet with an independent, HUD-approved counselor by phone or in person. It's required, and it helps you and your family make an informed decision.
- 3
Apply & Get an Appraisal
We review your income, credit, and property charges, and an FHA appraiser confirms your home's value and condition.
- 4
Close & Choose Your Payout
Sign your documents, then take your funds as a line of credit, monthly payments, a lump sum, or a combination.
Related Guides
Reverse Mortgage Closing Costs in Florida
Every fee explained, and which ones are paid from the loan.
Read Guide
The Reverse Mortgage Inheritance Strategy
How a reverse mortgage can protect the home and the family wealth.
Read Guide
Florida Property Tax Exemptions for Seniors
Homestead and senior exemptions you keep with a reverse mortgage.
Read Guide
Florida Senior Homebuyer Grants & Programs
Assistance programs for older Florida buyers and homeowners.
Read GuideFrequently Asked Questions
Quick answers to the questions Florida homebuyers ask us most. Can’t find what you’re looking for?
Talk to an ExpertFor a HECM, the youngest borrower must be at least 62, the home must be your primary residence, and you need substantial equity. You'll complete HUD-approved counseling, and the lender reviews your income and credit to confirm you can keep up with property taxes, insurance, and HOA dues.
The HECM maximum claim amount for 2026 is $1,249,125 nationwide. Your home can be worth more, but the HECM calculation stops at that value. For higher-value homes, a jumbo (proprietary) reverse mortgage may provide more money.
Yes. HECM for Purchase lets you buy a new primary residence with a single down payment, commonly about 45% to 65% of the price depending on your age and rates, and no monthly mortgage payment afterward. It's popular with retirees relocating to Florida or downsizing.
Yes, if the building is FHA-approved, or if the unit qualifies for FHA single-unit approval. Some jumbo reverse mortgage programs also lend on condos without FHA approval. Florida's newer condo safety laws have changed some buildings' status, so check yours early.
The loan becomes due. Your heirs can sell the home and keep any remaining equity, or keep the home by paying off the loan. A HECM is non-recourse, so heirs never owe more than the home is worth. They can satisfy the loan for the lesser of the balance or 95% of the appraised value.
You keep the title, and there's no monthly mortgage payment. But the loan can become due if you stop living in the home as your primary residence, don't pay property taxes or insurance, or let the home fall into disrepair. A lender can build in a set-aside for taxes and insurance to help prevent that.
See What Your Florida Home Could Do for You
Get a no-obligation estimate of your reverse mortgage options, whether you're staying put or buying your next home.