Reverse Mortgages in Florida, Explained in Plain English
A reverse mortgage lets homeowners 62+ convert home equity into cash — as a lump sum, monthly payments, or a line of credit — with no required monthly mortgage payment. You keep title to your home. The loan is repaid when you sell, move out, or pass away.
You must continue paying property taxes, homeowners insurance, and home maintenance, and comply with the loan terms.
You keep title
No monthly P&I payment required
Laszlo Varga, Mortgage Broker · NMLS #380661
Miami mortgage broker helping Florida homeowners compare reverse mortgages, HELOCs, and refinances side by side — honestly.
Swiftlend Mortgage Corp · NMLS #402985 · Verify on NMLS Consumer Access
Key details
- Minimum age
- 62 (HECM)
- 2026 HECM limit
- $1,249,125
- Monthly P&I
- None required
- Protection
- Non-recourse
How it works
How does a reverse mortgage work?
Most reverse mortgages are HECMs — Home Equity Conversion Mortgages — the standard product insured by the FHA. A HECM must be made by an FHA-approved lender; as a broker, Swiftlend arranges it through FHA-approved lender partners.
There is no required monthly principal and interest payment. Interest is charged only on the money you actually receive, and it is added to the loan balance each month — which is why the balance grows over time instead of shrinking.
You keep title and ownership of your home. The loan becomes due when the last borrower sells, permanently moves out, or passes away — or if property taxes, insurance, or other loan terms aren’t kept up.
A HECM is non-recourse: you and your heirs will never owe more than the home is worth when the loan is repaid. FHA insurance covers any shortfall. Heirs can keep the home by paying off the loan balance or 95% of the appraised value, whichever is less — or simply sell it, or hand it back and walk away.
Eligibility
Who qualifies for a HECM reverse mortgage?
The youngest borrower is at least 62 at closing. A younger spouse who isn’t on the loan can be named an eligible non-borrowing spouse and, under HUD rules, may be able to stay in the home after the borrower passes away, as long as the requirements continue to be met.
The home is your primary residence — you live there most of the year.
You have significant equity — typically around 50% or more, or the home is owned outright. Any existing mortgage is paid off from the proceeds.
The home meets FHA property standards (single-family, 2–4 unit owner-occupied, FHA-approved condo, or qualifying manufactured home).
No delinquent federal debt, such as unpaid federal taxes or defaulted federal student loans.
A financial assessment shows you can keep up with property taxes, insurance, and HOA dues. If it’s tight, part of the proceeds can be set aside to pay them.
Required counseling — a consumer protection
Before you can apply, you must meet with an independent, HUD-approved housing counselor. They explain the costs, alternatives, and obligations and have no stake in your decision. We encourage family members to join.
2026 HECM lending limit
$1,249,125 — up from $1,209,750 in 2025. This is the most home value a HECM will count when calculating your proceeds. Homes worth more can still get a HECM (calculated on $1,249,125) or look at a proprietary jumbo reverse mortgage.
62+ estimator
How much could I get? Estimate it in 30 seconds.
Three numbers, no credit pull, no contact info required. You’ll see an honest estimate after the existing mortgage and upfront costs are taken out.
Use the youngest spouse’s age, even if they won’t be on the loan.
Enter $0 if your home is paid off. Any existing mortgage is paid off first.
Enter an age and a home value to see your estimate — it updates as you type.
Estimate only — not a quote, a loan offer, or a commitment to lend. Assumes approximate HUD principal limit factors at a ~6.75% expected rate, a 6.5% note rate plus 0.5% annual MIP for monthly and credit-line figures, and a ~$4,000 third-party cost allowance. Actual amounts depend on current rates, appraisal, and program rules. This material is not from HUD or FHA and has not been approved by HUD or any government agency.
How much can I get?
Your amount depends on three things: the youngest borrower’s age, the expected interest rate, and your home’s value (up to the limit). The older you are, the larger the share of value you can access.
| Youngest borrower’s age | Approx. % of home value | On a $500,000 home |
|---|---|---|
| 62 | ~32% | ~$160,000 |
| 70 | ~38% | ~$190,000 |
| 75 | ~42% | ~$210,000 |
| 80 | ~47% | ~$235,000 |
| 85 | ~53% | ~$265,000 |
| 90 | ~59% | ~$295,000 |
Illustrative only — based on approximate HUD principal limit factors. Actual amounts change with rates and are reduced by closing costs and any existing mortgage payoff. We’ll run your exact numbers.
Payout options
How can I receive the money?
Lump sum
All at once at closing. This is the only fixed-rate HECM option.
Monthly for life (tenure)
Equal monthly payments for as long as you live in the home as your primary residence.
Monthly for a set term
Larger monthly payments for a period you choose — say, 10 years until another income source kicks in.
Line of credit
Draw what you need, when you need it. You pay interest only on what you use.
Combination
Mix them — for example, a line of credit plus monthly payments.
The HECM line-of-credit growth feature
The unused portion of a HECM credit line grows over time — at the same rate the loan accrues — regardless of what your home’s value does. That’s why financial planners use it as a standby reserve: open it early, leave it alone, and more is available later.
Adjustable-rate options carry a lifetime rate cap. Funds are disbursed after the 3-business-day right of rescission, which lets you cancel after signing.
Fee transparency
What does a reverse mortgage cost?
Reverse mortgages cost more upfront than a HELOC. Here is every piece, plainly. Most costs can be financed into the loan instead of paid out of pocket.
- FHA upfront mortgage insurance
- 2% of the max claim amount
- Annual mortgage insurance
- 0.5% of the balance per year
- Origination fee
- HUD-capped formula, $6,000 max
- Third-party closing costs
- Appraisal, title, recording, counseling
Your ongoing obligations
Borrower must continue paying property taxes, homeowners insurance (including windstorm and flood coverage where required), HOA dues, and home maintenance, and comply with loan terms. Falling behind on these can cause the loan to become due.
Florida specifics
What’s different about reverse mortgages in Florida?
Condos need FHA approval
A HECM on a condo requires the building to be FHA-approved (or the unit to get single-unit approval). This is where most Miami reverse mortgages succeed or stall — and condo eligibility is our specialty. If your building isn’t FHA-approvable, a proprietary reverse mortgage may work instead.
Lower doc stamp taxes since July 2024
Florida HB 7073 (effective July 1, 2024) changed how documentary stamp tax applies to HECMs: it’s now calculated on the principal limit — what you can actually receive — instead of the full lien amount. That means meaningfully lower Florida closing costs than before.
Proprietary (jumbo) reverse mortgages
Private reverse mortgages that aren’t FHA-insured. Some programs start at 55 or 60 (product-dependent), and they cover homes above the HECM limit — up to roughly $4 million. Relevant for Miami waterfront homes and high-value condos.
HECM for Purchase
Buyers 62+ can buy a Florida home with a reverse mortgage — right-sizing, or moving closer to family — in one transaction. You bring a down payment, the reverse mortgage covers the rest, and there’s no monthly principal and interest payment afterward.
Your homestead benefits continue
Because you keep title, Florida’s homestead exemption and Save Our Homes treatment generally continue to apply. (General information, not tax advice.)
Honest trade-offs
What are the pros and cons of a reverse mortgage?
Pros
No required monthly principal and interest payment.
Non-recourse — you or your heirs never owe more than the home is worth.
You stay in your home and keep title.
An unused HECM credit line grows over time.
Proceeds are loan advances, not income, so they generally aren’t taxable — consult a tax advisor.
Cons
The balance grows over time as interest and insurance are added.
It uses up equity, which can leave less for heirs.
Upfront costs are higher than a HELOC’s.
Missing taxes, insurance, or maintenance can make the loan due.
Not a good fit if you may move within a few years.
Compare first
What are the alternatives to a reverse mortgage?
A reverse mortgage isn’t the right answer for everyone. These are worth comparing side by side — we’ll run them with you.
HELOC
Lower upfront cost and flexible draws — but it requires monthly payments and income to qualify.
Explore HELOCs →Cash-out refinance
Replaces your mortgage with a larger one. Can make sense with strong income and a long horizon.
Run the refinance calculator →Downsizing
Sell, buy smaller, and keep the difference. No new debt — though it means moving.
FAQ
Reverse mortgage questions, answered
Talk through whether a reverse mortgage actually fits — 15 minutes, no pressure.
Prefer to talk it through with your adult children on the call? We encourage it.
Educational information only — not a commitment to lend. This material is not from HUD or FHA and has not been approved by HUD or any government agency. A reverse mortgage is a loan that must be repaid; it is not a government benefit. The loan becomes due when the last borrower sells, moves out, passes away, or fails to meet loan obligations. Borrower must continue paying property taxes, homeowners insurance, and home maintenance, and comply with loan terms. Figures are illustrative; rates and limits change. Not all applicants qualify. Laszlo Varga NMLS #380661 · Swiftlend.com Mortgage Company NMLS #402985. Equal Housing Opportunity.