Retirement in Florida sounds like the dream, and for many, it is. Warm weather, ocean views, no state income tax, it’s easy to see why so many people choose to settle down here. But even in paradise, the cost of living keeps rising. For homeowners living on a fixed income, that can be a challenge.
That’s where a reverse mortgage, officially called a Home Equity Conversion Mortgage (HECM), can make a real difference.
A HECM lets you tap into your home’s equity without having to sell it or move out. You can stay right where you are, keep the title to your home, and access cash to cover everyday expenses, medical bills, or just enjoy retirement a little more.
At Select Home Loans, we work with Florida homeowners every day who are curious about how a HECM might work for them. Our job isn’t to push a loan, it’s to help you understand your options, so you can make the best decision for your life.
What Is a HECM (Home Equity Conversion Mortgage)?
A HECM is a type of reverse mortgage backed by the federal government. It’s designed for homeowners aged 62 and up who have built up enough equity in their homes. Instead of making monthly mortgage payments, you receive money, either as a lump sum, monthly payment, or line of credit.
You still own your home. You still live in it. The loan gets repaid only when the home is sold, you move out for good, or pass away. At that point, the house is usually sold, and the proceeds pay off the loan. Any leftover equity goes to you or your heirs.
It’s not a one-size-fits-all solution. For some, it’s a lifeline. For others, it’s a way to unlock more freedom in retirement. Like any financial tool, it depends on how and why you use it.
In the next section, we’ll break down why so many people in Florida are taking a closer look at this option, and how it might fit into your own retirement plan.
Why Florida Homeowners Are Turning to HECMs
For many people nearing or living in retirement, most of their net worth is tied up in their home. A HECM gives you a way to access that value, without having to move or downsize.
In Florida, where property values have steadily climbed and many retirees live on fixed incomes, a reverse mortgage can offer breathing room. Whether it’s covering healthcare costs, helping with rising bills, or simply adding some financial cushion, a HECM can offer options that weren’t there before.
A few reasons why homeowners in Florida are considering it:
- No monthly mortgage payments , You’re not adding to your monthly bills. As long as you keep up with taxes, insurance, and home upkeep, the loan doesn’t have to be paid back until later.
- Money when you need it , The cash you receive isn’t taxed and can be used however you want: home repairs, medical care, or just enjoying life a little more.
- Stay in your home , This isn’t about selling or moving. It’s about using the value of a home you already own and love.
- Flexible options , Some people want a lump sum, others prefer monthly payments or a line of credit they can use as needed. You choose what works best.
Florida’s combination of high home equity and large retiree population makes it one of the top states where HECMs are gaining traction, and for good reason.
Clearing Up the Confusion: What People Get Wrong About HECMs
There’s no shortage of myths and misunderstandings when it comes to reverse mortgages. Some of the hesitation people feel is completely valid, if you don’t know how something works, it’s smart to ask questions.
Let’s tackle a few of the most common concerns:
“Am I giving up ownership of my house?”
No. You keep your name on the title. This is your home. You’re just borrowing against its value.
“Will my kids get stuck with the debt?”
They won’t. HECMs are non-recourse loans. That means neither you nor your heirs will ever owe more than the home is worth at the time it’s sold.
“What if I live a really long time?”
Great! The loan doesn’t expire. As long as you live in the home and meet your basic responsibilities (like paying property taxes and insurance), the reverse mortgage stays active.
“Is this a desperate move?”
Not at all. More and more financially stable retirees are using HECMs as part of a smart retirement strategy, sometimes to delay drawing from other investments, or simply to increase cash flow.
The bottom line: a HECM isn’t for everyone, but it’s not something to be afraid of. When you have the full picture, and a knowledgeable company to walk you through it, it becomes easier to see whether it fits your life.
Choosing the Right HECM Company in Florida
Not all reverse mortgage companies are created equal. Some are national chains that handle loans in bulk, while others offer a more personalized approach. When it comes to something as personal and long-term as a HECM, choosing the right lender can make all the difference.
Here are a few things to look for when evaluating HECM companies in Florida:
- Local Knowledge Matters
Florida isn’t like every other state. Between homestead exemptions, hurricane insurance requirements, and county-by-county tax rates, having a lender that understands Florida real estate can save you a lot of headaches. - Clear Communication
A good company won’t rush you. They’ll walk you through the pros, the cons, and the fine print. They’ll help you understand what happens now, and what happens later. - Experience With Seniors and Families
You want a team that respects your timeline, answers questions clearly, and can explain everything to adult children or heirs if needed. - Flexibility and Options
A lender should offer multiple payout structures and help you pick what fits your lifestyle, not just push the most profitable choice for them.
At Select Home Loans, we take pride in giving Florida homeowners honest, personalized advice. We’re not here to talk anyone into anything. Our goal is to help you make a confident, informed decision that supports your retirement goals, whether you end up choosing a HECM or not.
Still, it helps to know who else is out there. In the next section, we’ll take a look at some of the top reverse mortgage companies operating in Florida today.
Top HECM Companies in Florida (And How to Choose One)
There’s no shortage of reverse mortgage lenders out there. A quick search will pull up dozens of names, most of them national, offering similar-sounding products. But if you’re a homeowner in Florida, especially one thinking about retirement, not every lender will understand your specific needs, or the unique challenges that come with Florida real estate.
Below are some of the better-known companies offering HECM loans in the state, along with a few notes on what sets them apart (or doesn’t). If you’re looking for experience, honesty, and a local touch, the differences matter.
Select Home Loans
This is where local wins. Based in Florida and built around relationships, Select Home Loans takes a slower, more personal approach to the HECM process. You’ll talk to someone who knows your market, not someone reading from a national script. Their team helps Florida homeowners understand how a reverse mortgage fits into their bigger financial picture, without pressure or gimmicks. If you’re looking for real guidance and not just a sales pitch, start here.
AAG (American Advisors Group)
AAG is one of the biggest names in the reverse mortgage industry. They’ve got the marketing muscle and nationwide presence to match. While their reputation is solid and they offer several HECM options, working with AAG can sometimes feel transactional. You may not get the kind of personalized attention you’d want if you’re navigating this for the first time.
Longbridge Financial
Longbridge tends to appeal to homeowners who want to handle things more digitally. Their application process is streamlined, their rates are often competitive, and they’re known for offering flexible HECM structures. That said, if you want someone local to sit down and talk things through face to face, they may not be the best fit.
Mutual of Omaha Mortgage
Well-established and backed by a trusted name, Mutual of Omaha offers both HECM and traditional loan options. They’re especially known for their “HECM for Purchase” program, which lets seniors buy a new home and finance it with a reverse mortgage. Service quality can vary depending on the loan officer, but the company itself has deep roots in retirement finance.
Fairway Independent Mortgage
Fairway has physical branches in Florida, which makes them a bit more accessible than many national players. Their approach leans heavily on customer service and borrower education, and they’re often praised for being responsive. If you’re someone who values good communication over speed, Fairway may be worth a look.
Open Mortgage
Open Mortgage isn’t as widely known as some others, but they’re active in Florida and have been growing in the reverse mortgage space. They offer standard HECM products and are often recommended for borrowers refinancing an existing reverse mortgage. Their service is more regional than local, but their team is generally helpful.
Liberty Reverse Mortgage
Liberty offers a stripped-down, efficient path to a reverse mortgage. If you’ve done your homework and just need a lender to handle the paperwork, they could work. But if you’re looking for deeper advice or want help comparing options, they may not offer the level of support you’d get elsewhere.
A Note on RMF (Reverse Mortgage Funding)
If you come across RMF in your research, know this: they were once a major player in the space but filed for bankruptcy in 2022. They’re not issuing new loans, but outdated info about them is still floating around online.
When a HECM Makes Sense , and When It Might Not
A reverse mortgage isn’t just a financial product, it’s a decision that can shape the rest of your retirement. And like most big decisions, it’s not always black and white. There are times when a HECM can be a smart, even life-changing move. And there are times when something else might be a better fit.
Let’s break it down without the sales pitch.
A HECM might make sense if:
- You plan to stay in your home for the long haul.
The longer you live there, the more a HECM can benefit you. If you’re settled, don’t want to move, and love your neighborhood, it can help you stay without draining your savings. - You’ve built up solid equity.
Reverse mortgages work best when your home is mostly or fully paid off. The more equity you have, the more money becomes available to you. - You need extra monthly income or a financial cushion.
If Social Security or retirement savings aren’t quite cutting it, or you just want peace of mind, a HECM can offer flexibility and breathing room. - You want to delay drawing from investments.
Some people use a reverse mortgage as a strategy to give their 401(k) or IRA more time to grow before making withdrawals.
On the flip side, a HECM might not be the right move if:
- You’re planning to sell your home or move within a few years.
A HECM comes with upfront costs. If you’re not staying put, those fees might outweigh the benefits. - You don’t want to reduce the value of your estate.
Because a HECM taps into your equity, it will likely reduce the amount of home value left to your heirs. - You’re struggling with property taxes, insurance, or upkeep.
Even with a reverse mortgage, you still have to meet those responsibilities. Falling behind could eventually trigger foreclosure. - You haven’t spoken to your family yet.
While it’s your decision, it’s worth having an open conversation with your kids or anyone who might be affected down the road. Surprises create tension. Transparency builds trust.
At Select Home Loans, we don’t assume a reverse mortgage is right for everyone. Sometimes we talk people out of it, and that’s okay. Our job is to help you weigh your options clearly, without pressure.
FAQs About HECMs in Florida
Even after reading through the basics, most homeowners still have questions, and that’s normal. Reverse mortgages aren’t something you deal with every day. Below are some of the most common questions Florida homeowners ask us when considering a HECM.
How much equity do I need to qualify for a HECM?
There’s no exact number, but generally, you’ll need at least 50% equity in your home, more is better. The more equity you have, the more funds you’ll be eligible to access.
Can I lose my home with a reverse mortgage?
You’ll keep the title and ownership of your home, but you’re still responsible for certain things, like property taxes, homeowner’s insurance, and maintenance. As long as those are taken care of, and the home remains your primary residence, the loan remains in good standing.
What happens if I move or pass away?
The loan becomes due once you move out for more than 12 months, sell the home, or pass away. Your heirs can sell the home to pay off the loan, or refinance if they want to keep it. If the loan balance exceeds the home’s value, the difference is covered by FHA insurance, not your family.
Are HECM funds taxable?
No. Reverse mortgage payouts are not considered taxable income. You can use the money however you’d like, from covering bills to home upgrades to just living a little more comfortably.
Can I use a reverse mortgage to buy a new home?
Yes. Through a program called HECM for Purchase, you can use a reverse mortgage to help buy a new primary residence. This is especially helpful for retirees relocating to Florida who want to downsize or move closer to family, without taking on monthly mortgage payments.
How long does the HECM process take?
From application to funding, it typically takes 30 to 45 days. That includes counseling (required by HUD), an appraisal, underwriting, and final closing. A good loan officer will walk you through each step without making it feel overwhelming.
Do I have to go through counseling?
Yes, all borrowers are required to complete a HUD-approved counseling session before getting a HECM. This isn’t a formality, it’s designed to protect you and make sure you understand what you’re signing up for.
Get Help Navigating Your HECM Options
Reverse mortgages can feel like a maze at first, but you don’t have to figure it out alone. Whether you’re just starting to explore or already leaning toward a HECM, the smartest move is to talk to someone who knows the ins and outs, and who actually listens.
At Select Home Loans, we’re based in Florida, so we understand the local market, property values, and tax situations that national lenders might miss. More importantly, we take the time to walk you through your options in plain language. No pressure. No confusing terms. Just honest guidance to help you make the right call for your future.
Not sure if you qualify? Curious how much equity you could access? Want to know how this might impact your kids or your estate plan? We’ll walk you through all of it.
Here’s what happens when you reach out:
- We’ll schedule a no-obligation call or in-person meeting.
- We’ll go over your situation, answer your questions, and help you understand your options.
- If a HECM makes sense, we’ll guide you through the next steps. If it doesn’t, we’ll tell you that, too.
This isn’t just about unlocking home equity, it’s about building peace of mind. And that starts with having the right conversation.
Take the Next Step with Confidence
A HECM isn’t just about money, it’s about freedom. For many Florida homeowners, it’s a way to stay in the home they love while gaining the flexibility to handle life’s expenses, take care of family, or simply enjoy retirement without financial strain.
But here’s the thing: it has to be the right fit. And the only way to know that is by talking it through with someone who understands the full picture, your home, your goals, and the Florida market.
At Select Home Loans, we’re here to help you sort through the noise and figure out what makes the most sense for you. Whether you move forward with a reverse mortgage or not, you’ll walk away from our conversation with clarity and confidence.
We’re not just here to close loans. We’re here to help you make the right move, for you.
Ready to explore your options?
Reach out to Select Home Loans for a free, no-pressure consultation.
Let’s talk about where you are, where you’re headed, and how your home can support your next chapter.
