Florida follows the federal rules
Florida does not maintain a separate reverse mortgage rulebook; state law points to the federal definition. What governs your loan is HUD's programme: 62 or older, principal residence, independent counseling before application, financial assessment.
Florida's homestead protection is among the strongest in the country and it is not affected by taking a reverse mortgage — you retain title, and homestead status continues while the property remains your permanent residence.
Taxes are the easy part here. Insurance is not.
On the tax side, Florida borrowers are comparatively well protected:
- The homestead exemption reduces assessed value on your permanent residence, with an additional exemption for homeowners 65 and older in counties and municipalities that have adopted it, subject to an income limit.
- Save Our Homes caps how fast the assessed value of a homesteaded property can rise each year, which over a long tenure is worth more than the exemption itself.
- Some counties offer an additional exemption for seniors who have held the home long-term.
The real Florida risk is the insurance premium
A reverse mortgage requires you to keep homeowners insurance in force continuously. If the policy lapses, the loan can be called due. Florida premiums have risen sharply and windstorm coverage is a substantial cost on its own; for coastal properties it can exceed the property tax bill outright.
This is the single most important thing for a Florida borrower to model honestly, and it is where a LESA earns its keep: a set-aside from your own proceeds that pays taxes and insurance automatically for the life of the loan. It reduces your cash. It also removes the failure mode most likely to cost a Florida borrower their home. Ask for it to be quoted both ways.
What "enough equity" looks like in Florida
Florida has two distinct pictures. In much of the state values sit near the national middle and a standard HECM fits comfortably. Along the southeast coast and in parts of the Gulf coast, values push well past the $1,249,125 FHA lending limit, and a proprietary reverse mortgage is worth pricing.
Two Florida-specific property complications come up constantly:
- Condominiums must be in an FHA-approved project for a HECM. Florida has a very large condo stock and a meaningful share of it is not approved — and post-Surfside structural reserve requirements have made some associations harder to approve. Check before an appraisal is ordered.
- Manufactured homes qualify only if built after June 1976, permanently affixed, titled as real property, and on land you own. Leased-land parks — common here — do not qualify.
Counseling in Florida
Counseling is required and available by phone from HUD-approved agencies serving Florida. You may use any HUD-approved agency — we do not choose your counselor and receive no part of the fee. Find one at hud.gov/findacounselor or by calling 1-800-569-4287.
What the session actually covers, and how to get your money's worth from it.
The rest is the same everywhere
Beyond the above, a Florida reverse mortgage works the way it works nationally. You keep the title. There is no monthly mortgage payment for as long as you live there and meet your obligations. The loan is non-recourse, so neither you nor your heirs can ever owe more than the home sells for. Any existing mortgage is paid off at closing unless you use a second-lien product.
- How a reverse mortgage actually works
- Whether you qualify
- What it costs
- Every option compared, including the ones we do not sell
Licensed in Florida
Robert Erath, NMLS #297076, is licensed to originate in Florida through United Mortgage Corp, NMLS #1330. Verify either licence independently at nmlsconsumeraccess.org — you should do that with every originator you speak to, not just this one.
What this estimate is, and what it is not
These figures are an illustration for planning only — not a loan offer, not a commitment to lend, and not a guarantee of what you will receive. Your real numbers depend on a completed appraisal, the expected interest rate on the day your FHA case number is assigned, your existing mortgage payoff, and a HUD financial assessment. A reverse mortgage is a loan that must be repaid, not a government benefit. You remain responsible for property taxes, homeowners insurance and upkeep, and the loan can become due if you stop meeting those obligations.