Reverse Mortgages in Florida: How They Work, Who Qualifies & How Much You Can Get
Age 62 or older and want to turn your home equity into cash, with no monthly mortgage payment? A reverse mortgage may fit. You keep your home, and with a HUD-insured HECM you and your heirs never owe more than it's worth. North Star compares options from many wholesale lenders. Available for qualified borrowers; program guidelines apply.
Short answer
A reverse mortgage lets homeowners 62 and older turn home equity into cash without a monthly mortgage payment. You keep the title, you can stay as long as it's your primary residence, and with a HUD-insured HECM you and your heirs never owe more than the home is worth. You still pay taxes, insurance and upkeep. North Star compares reverse mortgage options from many wholesale lenders.
Updated October 2026. A reverse mortgage isn't difficult. It's just different from a regular mortgage, and most of what people hear about it at the dinner table is wrong. Here's how it actually works, from a Jacksonville mortgage broker serving Florida since 2000.
What Is a Reverse Mortgage?
A reverse mortgage is a loan against your home that you don't repay month to month. Instead, the balance grows over time and is repaid when the last borrower sells, moves out, or passes away. The most common type is the Home Equity Conversion Mortgage (HECM), insured by FHA and regulated by HUD.
Five Myths, Cleared Up
| What people hear | What's true |
|---|---|
| The bank will own my house. | You keep the title. The lender only has a lien. |
| I'll have to make payments. | No monthly mortgage payment is required. You still pay taxes, insurance, HOA and upkeep. |
| My kids will be stuck with the debt. | A HECM is non-recourse. No one ever owes more than the home is worth. |
| My home has to be paid off. | No. The reverse mortgage pays off your existing mortgage at closing. |
| I can't sell or leave the house to my family. | You can sell anytime with no prepayment penalty. Heirs keep any equity left after the loan is repaid. |
How You Can Take the Money
- Lump sum at closing
- Line of credit you draw on when you need it. On a HECM, the unused line grows over time.
- Monthly payments for as long as you live in the home (tenure) or for a set number of months (term)
- A combination of the above
Adjustable-rate HECMs offer all of these. A fixed-rate HECM is one lump sum at closing. Want the most cash up front? Read how much you can take on day one, because there's a first-year limit most people don't expect.
Types of Reverse Mortgages
| Type | Best for |
|---|---|
| HECM (FHA-insured) | Most homes valued up to the FHA limit ($1,249,125 in 2026). Lump sum, line of credit, monthly payments or a mix. |
| HECM for Purchase | Buying your next home with a large down payment and no required monthly mortgage payment. |
| Private (jumbo) reverse | Higher-value homes, some condos that aren't FHA-approved, or borrowers who want all the money at closing. Age rules vary by program and state. |
Available for qualified borrowers. Program guidelines apply. FHA/HUD limits and guidelines may change.
Who Qualifies
- Age: at least one borrower 62 or older for a HECM. A younger spouse can be an eligible non-borrowing spouse.
- Primary residence: single-family, 2–4 unit (you live in one), FHA-approved condo, townhome/PUD, or qualifying manufactured home.
- Equity: enough to pay off any existing mortgage and liens.
- Counseling: a session with a HUD-approved counselor before you apply.
- Financial assessment: a look at your income, credit and property tax and insurance history. If it's tight, part of the loan can be set aside to pay taxes and insurance for you.
What Determines How Much You Get
- The age of the youngest borrower or eligible non-borrowing spouse. Older means more.
- Your home's appraised value, up to the FHA limit
- Current interest rates. Lower rates mean more.
- Any mortgage or liens that must be paid off at closing
Costs to Know About
Many HECM closing costs are based on your home's value rather than the amount you take. FHA charges an upfront mortgage insurance premium (2% of the home's value, up to the limit) and an annual premium on the balance. That insurance is what makes the loan non-recourse and protects your access to the money. Costs can usually be paid from the loan proceeds. A reverse mortgage is a long-term tool. If you plan to move in a couple of years, we'll talk about other options.
When the Loan Comes Due
The loan is repaid when the last borrower sells, moves out for more than 12 months, or passes away, or if taxes, insurance or upkeep aren't kept up. Your heirs can sell the home and keep any remaining equity, refinance it, or buy it for the lesser of the loan balance or 95% of the appraised value.
Reverse Mortgage vs. Other Options
| Option | Trade-off |
|---|---|
| HELOC or home equity loan | More cash in hand, but you must qualify on income and make monthly payments |
| Cash-out refinance | New first mortgage with a monthly payment |
| Sell the home | All your equity, but you have to move |
| Reverse mortgage | Less cash than a forward loan, but no required monthly mortgage payment and you stay in your home |
Reverse Mortgage Guides
- Reverse mortgages in Jacksonville: straight answers
- How much cash can you get up front from a reverse mortgage?
- Home equity options in Jacksonville
- Buying out siblings on an inherited house
Reverse Mortgage Questions
Who qualifies for a reverse mortgage?
For a HUD-insured reverse mortgage (HECM), at least one borrower must be 62 or older, live in the home as their primary residence, have enough equity, complete HUD-approved counseling, and show they can keep paying property taxes, insurance and HOA dues. Some private reverse mortgages have different age rules depending on the state.
Will the lender own my home?
No. You keep the title. The lender has a lien, just like any mortgage. You can stay as long as you live there as your primary residence and keep up taxes, insurance and maintenance.
Do I have to make monthly payments?
No monthly mortgage payment is required. You can make payments if you want to slow the balance growth. You must still pay property taxes, homeowners insurance, HOA dues and upkeep.
Will my children owe the bank if the loan is more than the house is worth?
No. A HECM is a non-recourse loan. When the loan comes due, neither you nor your heirs will owe more than the home is worth. Heirs can sell the home, refinance it, or buy it for the lesser of the loan balance or 95% of its appraised value.
Can I get a reverse mortgage if I still have a mortgage?
Yes. The reverse mortgage must pay off any existing mortgage and liens at closing, and that is one of the most common reasons people use one.
How much money can I get?
It depends on the age of the youngest borrower (or eligible non-borrowing spouse), the home's value up to the FHA limit, and current interest rates. Older borrowers and lower rates mean more money. On a HECM, how much you can take in the first year is also limited.
Is reverse mortgage money taxable?
Loan proceeds are generally not taxable income because they are borrowed money. They don't affect Social Security or Medicare, but they can affect needs-based benefits like Medicaid. Check with a tax or benefits advisor.
Can I use a reverse mortgage to buy a home?
Yes. A HECM for Purchase lets you buy your next home with a large down payment and no required monthly mortgage payment.
What if my spouse is under 62?
A younger spouse can be an eligible non-borrowing spouse and may be able to stay in the home after the borrower passes, if HUD requirements are met. The amount available is based on the younger spouse's age.
Talk to North Star
Call 904-880-6741, request a quote, or apply online. For a reverse mortgage quote we need each borrower's name and age (and a spouse's, if married), the property ZIP code and type, an estimated value, and any mortgage balance. You talk to Nathan, not a call center.
North Star Mortgage Network, Inc. | Company NMLS #356789 | Nathan Young NMLS #325206 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Opportunity. North Star Mortgage Network is a mortgage broker and is not acting on behalf of or at the direction of HUD, FHA or any government agency. A reverse mortgage is a loan that must be repaid when the last borrower no longer lives in the home as a primary residence. Borrowers must live in the home, keep paying property taxes, homeowners insurance, HOA dues and maintenance, and complete HUD-approved counseling. Interest and fees are added to the balance over time. FHA/HUD guidelines may change; lender overlays may be stricter. Examples are estimates based on the information provided and are not a quote. Rates and terms are subject to change. All loans subject to credit approval. Available for qualified borrowers; program guidelines apply. Consult a tax advisor about taxes and a benefits advisor about needs-based benefits such as Medicaid.
