Like most states, Florida allows borrowers to get any of the reverse mortgage products available under programs offered by the Federal Housing Administration. Because reverse mortgages are offered only to people who are ages 62 and over, Florida—which counts more than 17% of its population in the 65-plus age group—is one of the most popular states for reverse mortgage loans.
Ranking fourth for reverse mortgages behind California, Texas and New York, Florida is known historically as a retirement destination because of its mild climate and also the fact that many retirees already call the state home.
Whether you live in Florida already or are considering moving to Florida in retirement, a reverse mortgage may be a valuable tool to help you age in place there.
Florida Reverse mortgage Programs
Almost all states allow for several types of reverse mortgage products insured by the Federal Housing Administration. These include the Home Equity Conversion Mortgage (HECM) “Standard,” HECM “Saver,” and HECM for Purchase.
A traditional reverse mortgage including the Saver and Standard products allows a borrower to draw down on the equity built up in his or her home. This can be done through ongoing payments determined on a term or tenure basis, or as a line of credit with the Standard product. The Saver comes with lower upfront fees, but allows a smaller percentage of the home equity to be borrowed overall.
Under the line of credit option, the credit line actually grows over time, meaning there will be more funds to draw upon later in the life of the loan the longer the borrower leaves funds in that credit line.
If you already live in Florida, you may consider one of the reverse mortgage products available to help free up cash on a monthly basis to help pay for daily expenses, medical needs or even in-home care if you need it. A borrower can use the proceeds for any purpose he or she chooses.
While there are no income or credit qualifications necessary in getting this type of loan, borrowers do need to maintain property charges including homeowners insurance and property tax as well as upkeep of the home.
Florida HECM for Purchase
The reverse mortgage for purchase is one relatively new type of reverse mortgage that allows a borrower to buy a new home and obtain a reverse mortgage all within a single transaction. If you wish to move to Florida from another state—or within the state—this loan can help you do so while eliminating your mortgage payments.
Many people use this type of loan to relocate to a house that is in a warmer climate, nearer to family, or is better equipped for aging in place with features like a single level, proximity to amenities or wheelchair access. It can also be used for new construction as long as the property has a certificate of occupancy.
Relative to other areas of the country, Florida real estate saw prices fall substantially as a result of the housing crash. In many metro areas, prices are still well below their pre-crash values, meaning it may be a good time to relocate with a reverse mortgage for purchase.
Have a question about a reverse mortgage in Florida? Call us Toll Free (800) 565-1722 or request a free quote today.
- NRMLA Reverse Mortgage Members Directory
- How to find the Best Reverse Mortgage Lender
- Finding a Reverse Mortgage Lender that Suits Your Needs
- Reverse Mortgage Lenders: Who Can You Really Trust?