FLORIDA REVERSE MORTGAGE REQUIREMENTS:
- Own the property outright or owe less than 50% balance on your Florida home.
- Be 62 years of age or older
- Occupy a Florida home as your principal residence
- Not be delinquent on any federal debt
- Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
- Participate in a consumer information session given by a HUD- approved Reverse Mortgage counselor
FLORIDA PROPERTY REQUIREMENTS
The following eligible for a reverse Florida mortgage your property types must meet all FHA property standards and flood requirements:
- Single family home or 2-4-unit home with one unit occupied by the borrower
- HUD-approved condominium project
- Manufactured home that meets FHA requirements
FLORIDA REVERSE MORTGAGE FINANCIAL REQUIREMENTS
- Income, assets, monthly living expenses, and credit history will be verified.
- Timely payment of real estate taxes, hazard and flood insurance premiums will be verified
WAYS TO WITHDRAW WITH A FLORIDA REVERSE MORTGAGE
- Tenure – Equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
- Term – Equal monthly payments for a fixed period of months selected.
- Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
- Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
- Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
REVERSE FLORIDA MORTGAGE LOANS ARE BASED ON
- Age of the youngest borrower or eligible non-borrowing spouse
- Current interest rate; and Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
Popular Reasons Why Florida Homeowners Are Taking a Reverse Mortgage
Consumers take out reverse mortgages for a variety of reasons. We have compiled a list of the most popular reasons for taking out a reverse mortgage. Keep in mind that you can use the funds from a Florida reverse mortgage for anything and is not limited to the list below. The list below is just what are the most common reasons based on consumers looking for information on our site.
- Daily Living Expenses
- Pay Off Medical or Credit Card Debt
- Pay Off Mortgage
- Help Family Member(s)
- Home Improvements
FLORIDA FHA REVERSE MORTGAGE LENDERS FOR SENIORS
If you are a Florida homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the Florida home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your Florida home’s equity.
You can also use a Florida reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the mortgage proceeds and the sales price plus closing costs for the Florida home you are purchasing.
How the Reverse Florida Mortgage Program Works
There are many factors to consider before deciding whether a Florida reverse mortgage is right for you. To aid in this process, you must meet with a Florida reverse mortgage counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a Florida reverse mortgage and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.
There are borrower and property eligibility requirements that must be met. You can use the listing below to see if you qualify. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA-approved lender. You can search online for a Florida FHA-approved lender or you can ask the HECM counselor to provide you with a listing. The Florida reverse mortgage lender will discuss other requirements of the HECM program, such as first year payment limitations, available payment options, the loan approval process, and repayment terms.
FLORIDA REVESE MORTGAGE COST
You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.
You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be .5 percent or 2.5 percent, depending on your disbursements. Over the life of the loan, you will be charged an annual MIP that equals 1.25% of the outstanding mortgage balance.
- Mortgage Insurance Premium – You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.
- Third Party Charges – Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.
- Origination Fee – You will pay an origination fee to compensate the lender for processing your HECM loan. A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
- Servicing Fee – Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate or has a fixed interest rate. The lender may charge a monthly servicing fee of no more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.