For Florida homeowners aged 62 and older, a reverse mortgage offers a way to tap into home equity without monthly payments, providing financial flexibility in retirement. With the state’s large senior population—over 21% of residents are 65+ according to the U.S. Census Bureau—and a median home value around $400,000 in 2025, reverse mortgages are increasingly popular. Known as the “Sunshine State,” Florida’s appeal as a retirement destination, from the beaches of Naples to the villages of Central Florida, makes understanding this financial tool essential.
A reverse mortgage, most commonly a Home Equity Conversion Mortgage (HECM) insured by the Federal Housing Administration (FHA), allows seniors to convert home equity into cash—via lump sum, monthly payments, or a line of credit—while remaining in their home. Unlike traditional mortgages, repayment isn’t due until the homeowner moves out, sells the property, or passes away. This guide details the application process in Florida, outlines requirements, answers common questions, and ranks the best lenders for 2025, with Select Home Loans leading the way.
Steps to Apply for a Reverse Mortgage in Florida
The reverse mortgage application process in Florida follows a structured path, balancing federal regulations with state-specific nuances. Here’s a step-by-step breakdown:
1. Research and Education
Start by learning about reverse mortgages. The HECM, the most common type, is FHA-backed, but proprietary (jumbo) reverse mortgages exist for high-value properties exceeding the 2025 HECM lending limit of $1,209,750. In Florida, where luxury homes in areas like Palm Beach often surpass this cap, understanding your options is key. Reputable sources like the U.S. Department of Housing and Urban Development (HUD) website or lender consultations can clarify terms, costs, and benefits.
2. HUD-Approved Counseling
Federal law mandates counseling from a HUD-approved agency before applying. In Florida, this can be done in-person or by phone, costing $125-$200 and lasting about 90 minutes. Counselors explain eligibility, financial implications, and alternatives (e.g., home equity loans), ensuring you’re informed. You’ll receive a certificate of completion, valid for 180 days, required for your application. Florida’s lack of a state-specific counseling mandate simplifies this step compared to some states.
3. Choose a Lender and Get Pre-Approved
Select an FHA-approved lender offering HECMs or a proprietary lender for jumbo loans. Submit basic info—home value, existing mortgage balance, age, and credit history—for a pre-approval estimate. This step, often completed online or over the phone, provides a loan amount projection without obligation. In Florida’s competitive market, pre-approval strengthens your planning.
4. Submit Application and Documentation
Once you commit, complete the lender’s application. Required documents include:
- Proof of identity (e.g., driver’s license).
- Property deed and mortgage statements.
- Homeowners insurance and property tax records.
- Counseling certificate. No income verification or tax returns are typically needed, unlike traditional loans, as repayment hinges on home equity, not personal earnings.
5. Appraisal and Underwriting
The lender orders an FHA-approved appraisal to assess your home’s value, condition, and compliance with HUD standards (e.g., safe, habitable, residentially zoned). In Fort Lauderdale or Miami, flood zone properties may need additional insurance verification. Underwriting follows, evaluating your ability to maintain taxes, insurance, and upkeep—crucial in Florida, where annual insurance can exceed $4,000 due to hurricane risk. This step takes 2-4 weeks.
6. Closing
After approval, you’ll sign closing documents, often digitally in 2025, or in-person at a title company or your home. Florida law grants a three-day right of rescission post-closing, during which you can cancel without penalty (interest doesn’t accrue until day four). Closing costs—2-5% of the loan amount—cover appraisal, title, and origination fees. Funds disburse after rescission, typically within a week.
7. Receive Funds and Ongoing Responsibilities
Choose your payout: lump sum, monthly payments, line of credit, or a mix. Maintain property taxes, insurance, and home condition to avoid default. In Florida, failure to pay these can trigger a lender-set-aside Life Expectancy Set Aside (LESA) to cover future costs from loan proceeds.
Key Requirements in Florida
Eligibility for a reverse mortgage in Florida aligns with federal HECM standards, with local twists:
- Age: At least 62 (younger spouses can be non-borrowing co-owners).
- Homeownership: Own the home outright or have a low mortgage balance payable with loan proceeds. It must be your primary residence.
- Equity: Sufficient equity, typically 50%+ of home value, based on appraisal. For a $400,000 home with a $100,000 mortgage, you’d need $200,000+ in equity post-payoff.
- Credit and Finances: No strict income or credit score minimum, but lenders assess your ability to pay taxes and insurance via a financial assessment. Delinquencies may require a LESA.
- Property Type: Single-family homes, 2-4 unit properties (if you occupy one), FHA-approved condos, or manufactured homes meeting HUD standards. Vacation homes don’t qualify.
- Insurance/Taxes: Current homeowners insurance (with flood/windstorm coverage in many areas) and paid property taxes (Broward County’s rate is ~1.1%).
- Counseling: HUD-approved session completed.
Florida’s homestead exemption protects primary residences from certain creditors, but reverse mortgage liens remain enforceable, requiring repayment upon trigger events (death, sale, or move-out).
Common Questions About Reverse Mortgages in Florida
Here are answers to frequent queries from Florida homeowners:
1. How Much Can I Borrow?
The amount depends on your age (older borrowers get more), home value (capped at $1,209,750 for HECMs), interest rates, and existing mortgage balance. For a 70-year-old with a $500,000 home and no mortgage, you might access $250,000-$300,000, per HUD calculators.
2. Will I Lose My Home?
No, you retain ownership and title. The lender holds a lien, repaid when you leave the home. Non-recourse status ensures you never owe more than the home’s value at repayment.
3. What Happens When I Die?
Your heirs can sell the home to repay the loan, refinance it, or surrender it via deed-in-lieu. Any remaining equity goes to them. Florida’s probate process may apply if not titled in a trust.
4. Can I Use It for a New Home?
Yes, via HECM for Purchase. You’d fund ~50% of the purchase price (e.g., $200,000 for a $400,000 home), with the HECM covering the rest, no monthly payments required.
5. How Do Taxes and Insurance Affect It?
You must pay property taxes (~$4,400/year for a $400,000 home) and insurance. Delinquency risks foreclosure unless a LESA is set up. Loan proceeds are tax-free, per IRS rules, but consult a tax advisor if held as assets.
6. Are There High Costs?
Yes, expect 2-5% in closing costs ($5,000-$15,000 on a $300,000 loan), plus a 2% initial Mortgage Insurance Premium (MIP) and 0.5% annual MIP. Florida’s 2024 law (HB 7073) reduced documentary stamp taxes to the principal limit, not full obligation, saving hundreds.
Best Reverse Mortgage Lenders in Florida for 2025
Here are the top five lenders excelling in Florida’s reverse mortgage market, ranked for service, terms, and local fit:
1. Select Home Loans – Florida’s Premier Choice
Select Home Loans, a Florida-based lender, leads for its tailored HECM and proprietary offerings. With local roots, they understand Florida’s market—from coastal condos to inland retirement communities.
- Why They’re Number One: Competitive rates (starting ~5.5%), low fees (often waiving origination), and closings in 20-30 days. Their counselors offer personalized guidance, and they excel with HECM for Purchase and short-term rental scenarios. Online tools and in-state expertise make them ideal for Floridians.
- Offerings: HECM lump sum, line of credit, monthly payments; jumbo loans for high-value homes.
- Requirements: 62+, 50%+ equity, HUD counseling, financial assessment.
Select Home Loans is the top pick for speed, affordability, and Florida-specific service.
2. Finance of America Reverse (FAR) – National Expertise
FAR, a leading HECM provider, ranks second with a strong Florida presence post its American Advisors Group acquisition.
- Strengths: Diverse options (HECM, HomeSafe jumbo), rates from 5.75%, and closings in 30-40 days. Their HomeSafe suits Florida’s luxury market (e.g., Naples homes over $1M).
- Requirements: 62+, 50% equity, counseling, moderate credit.
- Drawback: Higher fees than Select Home Loans.
FAR is great for high-value property owners needing robust options.
3. Longbridge Financial – Competitive Rates
Longbridge, a top-five U.S. reverse mortgage lender, offers HECMs with a focus on low rates and flexibility.
- Advantages: Rates from 5.6%, no servicing fees on some plans, and closings in 35 days. Strong online support suits tech-savvy Floridians.
- Requirements: 62+, 50%+ equity, counseling, financial review.
- Limitation: Less local focus than Select Home Loans.
Longbridge appeals to cost-conscious borrowers.
4. Mutual of Omaha Reverse Mortgage – Trusted Name
Mutual of Omaha, the 2024 volume leader, brings reliability and refinance options to Florida.
- Highlights: Rates from 5.8%, HECM for Purchase, and closings in 30-45 days. Extensive phone support aids first-timers.
- Requirements: 62+, sufficient equity, counseling, tax/insurance capacity.
- Catch: Slower than Select Home Loans.
Mutual of Omaha suits traditionalists valuing brand trust.
5. Liberty Reverse Mortgage – Streamlined Service
Liberty, now under Ocwen Financial, offers efficient HECM processing for Florida seniors.
- Perks: Rates from 5.7%, closings in 30-40 days, and solid customer service. Good for straightforward HECM needs.
- Requirements: 62+, 50% equity, counseling, basic financials.
- Downside: Fewer proprietary options than Select or FAR.
Liberty is a dependable mid-tier choice.
Why Select Home Loans Tops the List
Select Home Loans outshines competitors with its Florida-centric approach, minimizing costs and delays in a state where speed matters (e.g., beating condo bidding wars). FAR and Longbridge offer national scale, but Select’s local edge, low fees, and rapid closings align best with Florida’s 2025 market. Mutual of Omaha and Liberty provide reliability, yet lack Select’s agility and customization.
Final Thoughts
Applying for a reverse mortgage in Florida in 2025 involves clear steps—education, counseling, application, and closing—backed by requirements like age, equity, and property upkeep. Common questions reveal its flexibility (no payments) and safeguards (non-recourse status), while costs and obligations (taxes, insurance) demand planning. Among lenders, Select Home Loans stands out for its tailored, efficient service, making it the best partner for Floridians unlocking home equity. With the right lender and preparation, a reverse mortgage can enhance your retirement in the Sunshine State.
