Florida Reverse Mortgage Basics: What You Need to Know
What is a Reverse Mortgage?
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. The cash you get from a reverse mortgage can be paid to you as:
- a single lump sum of cash;
- a regular monthly cash advance;
- a “line of credit” that lets you decide when and how much of your available cash is paid to you; or
- a combination of these payment methods.
No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home.
Do I Qualify?
To qualify for a reverse mortgage, you must:
- Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if their names appear on the title to the home.
- Be a homeowner with equity in your home.
Single-family homes and qualified condominiums, townhouses, manufactured homes, and 1- to 4-family owner-occupied residences are eligible. Reverse mortgages are available only for homes occupied by owners as a principal residence.
How Much Can I Take Out?
Lenders take many factors into account when calculating how much you can take out of a reverse mortgage, including your age, the value of your home, the amount of built-up home equity, and interest rates at the time of origination. Other factors are the type of reverse mortgage product and particular payment option you select. Please try our calculator to estimate how much you could receive under different products and payment options.
