Florida Reverse Mortgage Information

A Florida reverse mortgage is available to senior homeowners that are 62 or older. Your Florida home must be your primary residence in order to qualify for a Florida reverse mortgage.

Sometimes this fact disappoints some senior citizens in Florida that are interested in applying for this type of home equity loan. Many retired folks in Florida do not live in the state year round. Instead they own second homes or vacation homes in Florida and only spend a couple of months per year in the Sunshine State. If your Florida home is a part time vacation home, you will not be eligible to receive a Florida reverse mortgage against that property. However, your primary home located in another state, may be eligible for a reverse mortgage if you have considerable equity in your primary residence.

Florida Lump Sum Reverse Mortgages

Sometimes the way that seniors make use of reverse mortgages is to take the loan out against their primary residence in a lump sum payout. Then they take the cash that they received as a lump sum, and purchase a Florida vacation home for all cash. In this scenario, you do not have to make mortgage payments on either home. So while your primary home will have a lien against it for the reverse mortgage, and may have very little equity for your heirs by the end of the reverse mortgage term, you can still leave your vacation home to your heirs. The Florida home will be free and clear of mortgage liens and will have realized market appreciation during your years of ownership. The reverse mortgage on your primary home does not require repayment until you permanently move out of the home or sell it. Any excess equity after the reverse mortgage is paid off is yours, or can be left to your heirs as part of your overall estate.

Although you may not be eligible for a Florida reverse mortgage, it is still possible that you can take advantage of this unique type of home equity loan designed for senior homeowners, by using it against your primary residence. Find out more about how a reverse mortgage works and if it is the right choice for you.

If you would like to see if you qualify for a Florida reverse mortgage, please click here to request a free benefit summary. You are also welcome to request this information for a primary residence that you own in another state.