If You’re Getting a Reverse Mortgage in Florida, It Pays to Know Your Options
As the third largest state in the U.S., it’s no surprise that Florida is a huge market for reverse mortgages. In addition, around one quarter of Florida’s population (over 5 million people) is above the age of 60, meaning that many individuals, including retirees, are looking for a way to utilize their home equity to boost their monthly income. In general, getting a reverse mortgage in Florida isn’t too different than getting one in another state, however, there are still a few things that you should know.
Miami Is One Of The Most Popular Places to Get a Reverse Mortgage in Florida
As you might have expected, Miami ranks as the most popular place to get a reverse mortgage in Florida, and just like the state of Florida as a whole, has a large segment of its population over 60. In fact, Miami-Dade county has more than half a million residents over the age of 60, a significant number, considering that the entire county’s population is currently hovering around 2.72 million people.
Who Are The Most Popular Reverse Mortgage Lenders in Florida?
Like other states, Florida has a mix of both local, statewide, and national reverse mortgage lenders. Some of the most popular lenders in the state include:
All Reverse Mortgage, Inc. of Florida
American Advisors Group (AAG)
Reverse Mortgage Funding, LLC
Live Well Financial, Inc.
One Reverse Mortgage, LLC
Liberty Home Equity Solutions, Inc.
HighTech Lending, Inc.
Synergy One Lending, Inc. (Retirement Funding Solutions)
When we analyze this list, we can actually see that all of the most popular lenders in the state are actually national companies, which makes sense, since these companies likely have the most resources to market their products to the public.
What Types of Reverse Mortgages are Available in Florida?
Florida borrowers can choose from a variety of reverse mortgage lenders (including the ones mentioned above), but will mainly be choosing between two types of reverse mortgages: HECMs (Home Equity Conversion Mortgages) insured by the Federal Housing Administration, and proprietary reverse mortgages. FHA-insured HECMs are the most popular type of reverse mortgages, and usually carry lower interest rates than non-HECM reverse mortgages. HECMs also have protections for non-borrowing spouses, which allow them to remain in their home after the borrowing spouse dies or moves to a nursing home.
Proprietary reverse mortgages, unlike their HECM counterparts, are not restricted by FHA HECM rules. This means that they can offer amounts greater than the current FHA reverse mortgage lending limit $679,650. In some cases, proprietary jumbo reverse mortgages can actually offer up to $3 million in funds. Despite having less restrictions, proprietary reverse mortgages are not always non-recourse, which can be risky for borrowers. In addition, they often carry higher interest rates than FHA-insured reverse mortgages, and don’t typically have built-in protections for non-borrowing spouses.