Reverse Mortgages in Florida

Brian Faeth Mortgage Team is your local reverse mortgage specialist in Broward and Palm Beach — a team of Household Mission Mortgage, LLC (a mortgage broker), helping eligible homeowners 62+ understand whether a reverse mortgage fits their retirement plan.

Important: This material is not from HUD or FHA and was not approved by HUD or any government agency. Household Mission Mortgage, LLC is a mortgage broker and is not a government agency.

What is a reverse mortgage?

A reverse mortgage is a loan available to eligible homeowners age 62 and older that lets you convert part of your home equity into cash. With a Home Equity Conversion Mortgage (HECM) — the FHA-insured reverse mortgage — you typically are not required to make monthly mortgage principal-and-interest payments. You remain the owner of your home. You must still pay property taxes, homeowners insurance, and HOA dues (if any), keep the home in good repair, and live there as your primary residence. If those obligations are not met, the loan can become due and payable.

How a HECM works

• You keep the title to your home
• Loan proceeds are generally not considered taxable income — consult a tax advisor about your situation
• Interest and fees typically accrue over time, so the loan balance usually grows
• The loan typically becomes due when the last borrower permanently moves out, sells the home, or passes away
• HECM loans are non-recourse: when the home is sold to pay off the loan, you or your heirs should not owe more than the home's value under FHA HECM rules (subject to program requirements)

Who may be eligible

• Age 62 or older (all borrowers on title generally must meet the age requirement for a HECM)
• The home must be your primary residence
• Sufficient equity in the home
• A financial assessment (income, credit, and residual income review) to show you can keep up with taxes, insurance, and maintenance
• Mandatory counseling from a HUD-approved reverse mortgage counselor before you apply

Ways to receive funds

• Lump sum (availability depends on interest-rate type and program rules)
• Monthly payments for a set term or for as long as you live in the home
• Line of credit you can draw from as needed (unused HECM line of credit may grow over time, subject to program rules)
• Combination of the above

HECM for Purchase

HECM for Purchase lets eligible borrowers 62+ buy a new primary residence with a reverse mortgage — using HECM proceeds plus other funds for the down payment, subject to FHA rules. It can help some buyers move into a home that fits them better without a traditional monthly mortgage payment (taxes, insurance, and HOA still apply).

Proprietary / jumbo reverse mortgages

For higher-value South Florida homes, some lenders offer proprietary (non-FHA) reverse mortgages with higher loan limits than a HECM. These are not FHA-insured. Guidelines, costs, and protections differ — I will explain the trade-offs clearly if a jumbo reverse may fit.

What happens when the loan comes due

The loan typically becomes due when the borrower permanently leaves the home, sells, or passes away. Heirs usually may:

• Sell the home and pay off the loan balance (or the home's value under HECM non-recourse rules)
• Keep the home by paying off or refinancing the balance
• Deed the home back through the applicable lender / HUD process, depending on the situation

A reverse mortgage does not mean the bank "owns" your home while you live there and meet your obligations — you keep the title.

Costs to understand

• FHA mortgage insurance premiums (MIP) on HECMs
• Origination fees (subject to FHA caps on HECMs)
• Standard closing costs (appraisal, title, counseling, and related fees)
• Interest that accrues on the balance over time

I will provide a total-cost picture so you can compare a reverse mortgage with a HELOC, cash-out refinance, or keeping your current loan.

Myths vs. facts

• Myth: "The bank owns my house." Fact: You keep the title. The reverse mortgage is a lien, like other mortgages.
• Myth: "It is free money." Fact: It is a loan. Interest and fees accrue; the balance is repaid when the loan comes due.
• Myth: "I can never lose my home." Fact: You must pay taxes, insurance, and HOA dues, maintain the home, and live there. Failure to meet obligations can make the loan due.
• Myth: "My heirs will be stuck with debt beyond the home." Fact: HECMs are non-recourse when the home is sold to satisfy the loan under FHA rules.

Brian Faeth, Loan Originator, NMLS #2629475. Household Mission Mortgage, LLC, NMLS #2443063. Equal Housing Opportunity. This material is not from HUD or FHA and was not approved by HUD or any government agency. A reverse mortgage is a loan that must be repaid. Borrowers must pay property taxes, insurance, and maintenance, and occupy the home as a primary residence. Consult a tax or financial advisor. Program availability is subject to lender guidelines and eligibility. This is not a commitment to lend.