As Florida homeowners approach retirement, many find that taking out a reverse mortgage is a keen and resourceful long-term income solution. Understanding the options a reverse mortgage presents and the types of properties that are eligible for one will help you determine whether this option is right for you.
At Senior Lending Corporation, we help Florida residents plan for retirement by providing comprehensive reverse mortgage support. Our technical and regional expertise position us as a premier reverse mortgage company for Florida residents. Contact Senior Lending Corporation to discuss your reverse mortgage eligibility.
Jump To What You’re Looking For Here:
A reverse mortgage extracts value from your existing home equity instead of requiring you to sell the property.
Under a traditional mortgage structure, your equity is illiquid. You can only access the money you have paid toward your loan after selling the property and amortizing the loan. A reverse mortgage inverts the dynamic by liquidating your equity and returning it to you.
A reverse mortgage provides funds up to the total equity on your home. The total you receive is the principal limit. You can request the entire principal limit immediately, exchanging the full value for a lump sum. Alternatively, you could receive installments that gradually pull from your equity. It is also possible to open a line of credit equal to some or all of your equity, only extracting the money you spend when you spend it.
Further payments against your loan are optional after opening a reverse mortgage. The remaining balance only becomes due when you sell your home. Interest will continue to accrue against the mortgage, but the influx of equity-derived cash creates immediate financial flexibility. You will still be responsible for ownership expenses such as property taxes and homeowners insurance.
The parameters for reverse mortgage eligibility are specific but apply to many individuals. Most reverse mortgage products require the borrower to be age 62 or older. The property you request a reverse mortgage for must be your primary residence.
When determining your eligibility, your lender will consider other factors, such as your income requirements and outstanding debts. Sufficient home equity is also essential for a reverse mortgage to be possible and financially viable.
The type of property you own is a critical reverse mortgage eligibility factor. In Florida, an eligible property is a permanent structure you use as your primary residence. Most single-family homes qualify. A multifamily home is eligible if it contains four or fewer housing units, one of which is your primary residence. Eligibility for other property types can be situational.
A condo only qualifies for a reverse mortgage in Florida if it is located in a development that the United States Department of Housing and Urban Development (HUD) deems acceptable.
A mobile home does not qualify for a reverse mortgage as it is not a fixed structure.
A manufactured home will qualify for a reverse mortgage if it is a double-wide unit or larger. The manufactured home must possess HUD tags. You can use reverse mortgage funds to purchase an eligible manufactured home.
At Senior Lending Corporation, we offer two types of reverse mortgages to homeowners in Florida.
A Home Equity Conversion Mortgage (HECM) is a line of credit worth up to the equity you have built. You may withdraw funds from the line of credit as needed to cover the cost of health care, food, home renovations and any other typical expense. HECM loans can also fund inheritances or debt consolidation efforts.
A proprietary reverse mortgage — or jumbo reverse mortgage — is a credit line similar to HECM loans for homes worth up to $4 million. Our proprietary reverse mortgage product, HomeSafe, is available to homeowners starting at age 55 with minimal income or credit requirements.
Liquidating your existing home equity can yield numerous advantages as you plan for retirement and for the rest of your time in your home.
Retirees in Florida often seek ways to supplement the income they earned during their careers. You can use a reverse mortgage to fund your livelihood if you have sufficient equity in your home. Senior Lending Corporation offers competitive reverse mortgage options, so find out if you qualify today!
