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A reverse mortgage can be a game-changer for Florida homeowners looking to eliminate their monthly mortgage payments and access home equity for a more comfortable retirement. However, not everyone qualifies for this unique financial tool.
If you’re considering a reverse mortgage, it’s important to understand the eligibility requirements to determine whether it’s the right option for you. In this article, we’ll break down the key qualifications and what you need to know before applying.
1. Age Requirement: 62 and Older
To qualify for a reverse mortgage in Florida, you must be at least 62 years old. If you own the home with a spouse under 62, you may still be eligible, but your spouse will be considered a non-borrowing spouse and won’t have access to the loan proceeds.
The amount you qualify for is partially based on your age—the older you are, the more you can borrow. This is because lenders calculate loan amounts based on life expectancy and available home equity.
2. Homeownership & Residency Requirements
• You must own your home (or have a low remaining mortgage balance that can be paid off with the reverse mortgage proceeds).
• The home must be your primary residence—meaning you live in it for at least six months per year.
• Vacation homes and investment properties do not qualify for a reverse mortgage.
If you still have a mortgage, part of your reverse mortgage funds will first be used to pay off your existing loan before you receive any additional cash.
3. Property Type Eligibility
Not all properties qualify for a reverse mortgage. In Florida, the following property types are eligible:
✅ Single-family homes
✅ Multi-family homes (up to 4 units, if you live in one of the units)
✅ FHA-approved condominiums
✅ Manufactured homes (must meet HUD standards and be on a permanent foundation)
If your condo isn’t FHA-approved, you may still qualify for a proprietary (jumbo) reverse mortgage.
4. Financial & Credit Qualifications
Unlike traditional loans, a Florida reverse mortgage does not require a high credit score or employment income. However, lenders will conduct a financial assessment to ensure you can meet the ongoing obligations of homeownership.
Lenders check that you can afford:
• Property taxes
• Homeowners insurance
• HOA fees (if applicable)
• General home maintenance
If your financial history shows past issues (such as late tax payments), the lender may set aside part of your loan proceeds in a Life Expectancy Set-Aside (LESA) to cover these expenses.
5. Loan Limits & Home Equity Requirements
The amount you can borrow depends on:
• Your home’s appraised value
• Your age
• Current interest rates
As of 2025, the FHA Home Equity Conversion Mortgage (HECM) loan limit is $1,209,750 (See https://www.hud.gov/program_offices/housing/sfh/lender/origination/mortgage_limits). If your home is worth more than this, you may qualify for a jumbo reverse mortgage with different terms.
6. Reverse Mortgage Counseling Requirement
To ensure that borrowers fully understand the terms of a reverse mortgage, the U.S. Department of Housing and Urban Development (HUD) requires all applicants to complete a counseling session with a HUD-approved counselor.
This session covers:
✔ How reverse mortgages work
✔ Alternatives to a reverse mortgage
✔ Loan costs and repayment terms
Once completed, you’ll receive a certificate of completion, which you’ll need to move forward with the application.
Additional Resources:
https://www.hud.gov/program_offices/housing/sfh/hcc/reverse_mortgages1
Is a Reverse Mortgage Right for You?
If you meet the qualifications above, a reverse mortgage in Florida could provide financial freedom in retirement. Here’s what you gain:
✅ Eliminate monthly mortgage payments
✅ Stay in your home and maintain ownership
✅ Access tax-free cash to supplement retirement income
✅ Reduce financial stress and improve quality of life
Want to Find Out More? Reach out to us at 844-352-2378, Contact us Here, or Locate an Office Near You to Learn More!
