Florida Reverse Mortgage Blog

If you’re a Florida homeowner aged 62 or older and considering a reverse mortgage, you’ve likely come across two common options: the Home Equity Conversion Mortgage (HECM) and the Jumbo Reverse Mortgage. While both allow you to tap into your home’s equity for tax-free cash—without having to sell or move—there are important differences that can impact which product is best for you.

In this blog, we’ll break down the pros and cons of each option and help you determine the best fit for your Florida home and financial goals.

What Is a HECM?
The HECM (Home Equity Conversion Mortgage) is the most common type of reverse mortgage and is insured by the Federal Housing Administration (FHA). It is available to homeowners age 62 and older and comes with specific rules and consumer protections.
Key features of a HECM:

• FHA-insured and federally regulated
• Available for homes valued up to the FHA lending limit ($1,209,750 in 2025)
• Requires HUD-approved counseling
• Borrowers must meet financial and property requirements
• Funds can be received as a lump sum, monthly payments, line of credit, or a combination

HECMs are widely used and trusted, especially for homes that fall within the FHA lending limits, which include many properties throughout Florida.

What Is a Jumbo Reverse Mortgage?
A Jumbo Reverse Mortgage (also known as a proprietary reverse mortgage) is a private loan not backed by the federal government. It’s designed for homeowners with high-value properties, often exceeding the FHA limit.
Key features of a Jumbo reverse mortgage:

• Designed for homes valued above $1.15 million
• Not FHA-insured, but often offer more flexible terms
• May allow for larger loan amounts than HECMs
• Often no mortgage insurance premiums (MIP)
• Fewer restrictions on property type and borrower credit

In Florida, where many coastal and luxury properties are valued well over the FHA cap, Jumbo reverse mortgages are an increasingly popular option.

HECM vs. Jumbo: A Side-by-Side Comparison

Which One Is Right for Your Florida Home?
Consider a HECM if:

• Your home’s value is below or near the FHA limit
• You want the peace of mind of a government-insured loan
• You need access to flexible payout options or a growing line of credit
• You’re looking for broad consumer protections

Consider a Jumbo Reverse Mortgage if:

• Your home’s value is well over $1.15 million
• You want to maximize your available funds beyond FHA limits
• You’re comfortable working with a private lender offering competitive terms
• You own a high-value Florida home, especially in areas like Naples, Boca Raton, Palm Beach, or Miami

Final Thoughts
Both HECMs and Jumbo Reverse Mortgages can be powerful tools for Florida homeowners who want to eliminate monthly mortgage payments, supplement retirement income, or access home equity. The right choice depends largely on your home’s value, your financial goals, and the type of loan flexibility you need.
At Florida’s Best Reverse Mortgage Company, we specialize in helping Florida seniors compare all available options. Whether you’re in a modest home or a million-dollar coastal property, we’ll guide you through the process with clarity, care, and personalized advice.

Contact us today for a free consultation to see how much you may qualify for under both programs. Let us help you find the reverse mortgage that fits your Florida lifestyle.