Florida Reverse Mortgage Lenders: Expert Guidance for Sunshine State Homeowners

Last Updated: February 8, 2026 | By: Michael G. Branson, CEO (NMLS #14040) & Cliff Auerswald, President (NMLS #14041)

Florida is America’s premier retirement destination, home to 4.3 million homeowners age 62 and older. If you’re enjoying Florida’s sunshine and beaches, a reverse mortgage might help you access your home’s equity without monthly payments. But with Florida’s unique considerations—hurricane insurance, high property insurance costs, and homestead protections—you need guidance from lenders who understand the Sunshine State.

At All Reverse Mortgage, Inc. (ARLO™), we’ve been helping Florida homeowners since 2004. With an A+ BBB rating, 4.94/5 stars from 500+ reviews, and zero complaints, we understand Florida’s insurance requirements, homestead protections, and what makes the state unique.

This guide covers everything you need to know about reverse mortgages in Florida, including insurance considerations, costs, and how to choose the right lender.

Understanding Reverse Mortgages: A Florida Guide

A reverse mortgage allows Florida homeowners age 62 and older to convert part of their home equity into cash without selling their home or making monthly mortgage payments. The loan is repaid when you permanently move out, sell the home, or pass away.

How It Actually Works

Instead of you paying the lender each month, the lender pays you. You keep ownership of your home and remain responsible for property taxes, homeowners insurance (including flood and windstorm coverage if required), and home maintenance.

Here’s a real example from Tampa:

Susan, 68, owned a condo in Clearwater worth $385,000 with no mortgage. Her Social Security of $2,200/month wasn’t covering her rising costs—especially insurance, which had jumped to $4,800/year after recent hurricanes. She obtained a HECM reverse mortgage with a line of credit of $192,000.

Result: Susan uses the line of credit to pay her insurance premiums and HOA fees when needed, preserving her Social Security for living expenses. She still owns her condo and has financial breathing room. The line of credit grows monthly, giving her increasing available funds.

Three Types Available in Florida

1. HECM (Home Equity Conversion Mortgage) – FHA-Insured

The most common reverse mortgage, insured by the Federal Housing Administration. Key features:

• Available for homes valued up to $1,249,125 (2026 limit)
• Requires HUD-approved counseling before closing
• Non-recourse protection: Never owe more than home value
• Regulated costs and origination fees
• Financial assessment required

2. Jumbo (Proprietary) Reverse Mortgage

For Florida’s high-value homes exceeding the FHA limit (common in Palm Beach, Naples, Miami Beach, and waterfront properties):

• Not government-insured
• Fewer consumer protections than HECM
• Terms vary by lender
• Typically higher costs
• Not all lenders offer them

3. HECM for Purchase

Buy a new Florida home using a reverse mortgage with no monthly payments. Popular with snowbirds becoming full-time residents. You’ll need a substantial down payment (typically 40-50% depending on age), and the reverse mortgage covers the rest.

What Makes Florida Different: Insurance, Homestead, and Tax Benefits

Florida isn’t like other states when it comes to reverse mortgages. Here’s what makes Florida unique:

1. Hurricane and Flood Insurance Requirements

Florida’s coastal location means insurance is a major consideration:

Homeowners Insurance: Florida has some of the highest homeowners insurance rates in the nation. After recent hurricanes, many insurers left the state or dramatically increased rates. Expect $2,500-$6,000/year for standard coverage, more for coastal properties.

Flood Insurance: If your home is in a flood zone (FEMA-designated), you’ll need flood insurance. Costs vary widely: $500-$3,000+/year depending on flood zone and elevation.

Windstorm Coverage: Some coastal areas require separate windstorm insurance. In some counties, you may need coverage through Citizens Property Insurance Corporation (Florida’s state-run insurer).

Critical for reverse mortgage borrowers: You must maintain adequate insurance. With Florida’s rising insurance costs, this is a major budget consideration. On a $400,000 home in a coastal area, total insurance (home + flood + windstorm) can easily exceed $6,000-$8,000/year.

2. Homestead Exemption and Save Our Homes

Florida offers valuable property tax protections:

Homestead Exemption: Up to $50,000 reduction in your home’s assessed value for property tax purposes (first $25,000 applies to all property taxes, second $25,000 applies to non-school taxes).

Save Our Homes Cap: Once you have homestead exemption, your annual assessed value increase is capped at 3% or the rate of inflation, whichever is lower. This means your property taxes grow slowly even as home values increase.

Portability: If you’ve had homestead exemption and move to a different Florida home, you can transfer (port) some of your accumulated tax savings to the new property.

Important for reverse mortgage borrowers: These protections continue with a reverse mortgage. Your property taxes remain capped as long as you maintain homestead exemption status.

3. No State Income Tax

Florida has no state income tax, making it attractive for retirees. Combined with reverse mortgage proceeds (which aren’t taxed anywhere), you maximize your retirement income without any state tax burden.

Retirement advantage: No state tax on Social Security, pensions, investment income, or retirement account withdrawals. Reverse mortgage proceeds add tax-free cash flow on top.

4. Relatively Low Property Taxes

Despite having no state income tax, Florida’s property taxes are moderate (average 0.80-0.98% of assessed value) thanks to homestead protections and the Save Our Homes cap.

Example: On a $400,000 home with full homestead exemption:
– Assessed value for taxes: $350,000 (after $50K exemption)
– Annual property taxes: $2,800-$3,400/year
– With Save Our Homes, this increases only 3% or inflation, whichever is lower

5. Popular Retirement Communities

Florida is home to massive retirement communities like The Villages (130,000+ residents), with unique considerations:

• HOA fees can be $200-$500+/month
• Some communities have age restrictions (55+ or 62+)
• Condos may have special insurance and assessment requirements
• Reverse mortgages work well in these communities but you must budget for all fees

When a Reverse Mortgage Works Well in Florida

Based on our 20+ years helping Florida homeowners, reverse mortgages work best in these situations:

✓ You’re Aging in Place in Florida’s Paradise

Florida’s perfect weather and beach lifestyle make it ideal for aging in place. With upfront costs of $15,000-$30,000, a reverse mortgage makes sense if you’re staying 5+ years.

Good fit: Carol, 71, in Sarasota. She moved to Florida 15 years ago and has no plans to leave. A reverse mortgage eliminated her $1,450/month mortgage payment, letting her enjoy retirement on her Social Security and pension.

✓ You Need to Cover Rising Insurance Costs

Florida’s insurance crisis has dramatically increased costs. A reverse mortgage line of credit can cover insurance premiums when they spike.

Good fit: Robert, 69, in Fort Myers. His insurance jumped from $2,400/year to $5,200/year after Hurricane Ian. He set up a reverse mortgage line of credit to cover insurance and hurricane-related repairs without touching his retirement savings.

✓ You’re a Former Snowbird Becoming Full-Time

Many snowbirds sell their northern home and become Florida residents full-time. HECM for Purchase lets you buy a Florida home with a reverse mortgage.

Good fit: James and Linda, 66 and 68, sold their Ohio home and bought a $425,000 home in Naples using HECM for Purchase. They put $212,000 down and financed $213,000 with no monthly mortgage payments.

✓ You Want to Delay Social Security

Every year you delay Social Security past 62 increases your benefit by ~8% until age 70. A reverse mortgage can provide income while you wait.

Good fit: Patricia, 64, in Orlando. She used a reverse mortgage line of credit from age 64-70 to maximize her Social Security. Her benefit at 70 is $3,100/month instead of $2,170/month at 64—an extra $930/month for life.

✓ You Need to Eliminate Mortgage Payments

If mortgage payments are straining your retirement budget, a reverse mortgage can help.

Good fit: Michael and Sandra, 63 and 65, in Jacksonville. They owed $125,000 on their $380,000 home with payments of $1,280/month. A reverse mortgage paid off their mortgage completely, freeing up $15,360/year.

When a Reverse Mortgage Doesn’t Work in Florida

We believe in honest guidance. Here’s when a reverse mortgage typically isn’t a good fit in Florida:

✗ You Can’t Afford Florida’s High Insurance Costs

You must maintain homeowners insurance, and in many areas, flood and windstorm coverage. If insurance costs $6,000-$8,000/year and you can’t reliably afford this, a reverse mortgage could lead to foreclosure.

Florida reality check: Can you cover $500-$700/month in combined insurance costs plus $200-$300/month in property taxes? If not, reconsider.

Poor fit: Margaret in a coastal condo with insurance costs of $7,200/year but only $1,800/month Social Security. Even with a reverse mortgage, she couldn’t sustain the insurance costs and eventually had to sell.

✗ You’re Planning to Return to Your Home State

Many people retire to Florida but later decide to return north to be near family. If you might move within 3-5 years, closing costs won’t be worth it.

Poor fit: David, 66, in Tampa mentioned he might move back to Pennsylvania to help care for his aging parents within 2 years. We advised against a reverse mortgage—$22,000 in closing costs for 2 years of use doesn’t make financial sense.

✗ Your Condo Has Structural Issues or High Assessment Risk

After the Surfside collapse, Florida passed strict condo inspection laws. Buildings may require expensive repairs and special assessments.

Poor fit: Older condos (40+ years) may face $50,000+ special assessments for structural repairs. If your building is at risk, wait until assessments are complete before getting a reverse mortgage.

✗ You’re in a High Hurricane Risk Area and Worried About Storm Damage

While insurance covers hurricane damage, major storms can make homes temporarily uninhabitable. If you’re concerned about evacuation or extended displacement, consider your options carefully.

✗ You Want to Leave Your Home to Your Children Debt-Free

A reverse mortgage reduces equity available to heirs.

Poor fit: If preserving full equity for your children is your priority, a reverse mortgage isn’t the right choice.

Current Florida Market Conditions (Q1 2026)

Interest Rates (As of February 2026)

Home Value Trends Across Florida

Florida’s housing markets vary dramatically by region:

• Palm Beach: Median $1.29M (many homes require jumbo products)
• Naples: Median $682,000 (high-end market, some exceed HECM limit)
• Miami/Fort Lauderdale: Median $512,000-$515,000 (strong market)
• Sarasota/St. Petersburg: Median $403,000-$517,000 (popular retiree areas)
• Orlando: Median $391,000 (growing senior population)
• Jacksonville: Median $320,000 (most affordable major market)
• The Villages: Median $394,000 (massive 55+ community)

Market insight: Florida home values appreciated significantly 2020-2023, slowed in 2024, and remain relatively stable in 2025-2026. Coastal properties continue commanding premium prices despite insurance challenges.

Top Florida Markets for Reverse Mortgages (2025)

According to HUD data, these Florida cities had the most reverse mortgage activity:

1. Jacksonville: 82 loans closed (affordable housing, growing senior population)
2. Tampa: 59 loans (large metro area, diverse housing)
3. The Villages: 43 loans (massive retirement community)
4. Cape Coral/Sarasota/St. Petersburg: 42 loans each (popular Southwest Florida markets)
5. Miami: 41 loans (international retirees, high property values)

Real Client Experiences from Florida

Story #1: Covering Insurance Costs in Fort Myers

Robert – Fort Myers, FL
Age: 69 | Home Value: $375,000 | Closed: September 2024

His Situation: Robert’s home survived Hurricane Ian with minor damage, but his insurance company left Florida afterward. His new insurance skyrocketed from $2,400/year to $5,200/year, plus he needed $2,200/year for flood insurance. Total insurance: $7,400/year, straining his $3,400/month retirement income.

What We Did: HECM adjustable-rate reverse mortgage that paid off his remaining $45,000 mortgage and established a $142,000 line of credit.

The Result:

• Eliminated $680/month mortgage payment (saved $8,160/year)
• Uses line of credit to pay insurance premiums annually
• Line of credit grows monthly, building financial cushion
• Can afford to stay in Florida despite insurance crisis
• Has funds available for hurricane prep/repairs if needed

Robert’s words: “After Ian, insurance nearly forced me to leave Florida. The reverse mortgage gave me the flexibility to stay in my home and handle these crazy insurance costs without touching my savings.”

Story #2: Snowbird to Full-Time Resident in Naples

James & Linda – Naples, FL
Ages: 66 & 68 | Home Purchase: $425,000 | Closed: March 2025

Their Situation: James and Linda were Ohio residents who spent winters in Florida for 10 years. They wanted to become full-time Florida residents but didn’t want mortgage payments in retirement. They sold their Ohio home for $315,000.

What We Did: HECM for Purchase on a $425,000 home in Naples. They put $212,000 down (50%), and the HECM covered $213,000.

The Result:

• Own their dream Florida home outright
• No monthly mortgage payments (just HOA, taxes, insurance)
• Used remaining $103,000 from Ohio sale for emergencies/travel
• Established Florida residency (no state income tax)
• Living their best retirement life on the Gulf Coast

Linda’s words: “We’d been snowbirds forever but wanted to be full-time Floridians. HECM for Purchase let us buy our dream home without draining all our savings. No mortgage payment means we can enjoy retirement.”

Story #3: When We Said “No”

Margaret – Surfside, FL
Age: 72 | Condo Value: $520,000 | Did NOT proceed

Her Situation: Margaret owned a condo in an older beachfront building. She wanted a reverse mortgage to supplement her Social Security.

Our Recommendation: We advised AGAINST the reverse mortgage for several reasons:

1. Her 50-year-old building faced mandatory recertification and likely special assessments of $75,000+
2. Her insurance was already $6,800/year and rising
3. Her HOA announced potential $200/month increase
4. She only had $2,100/month Social Security—couldn’t sustain insurance + HOA costs
5. Building might face structural issues requiring major repairs

The Result: Margaret appreciated our honesty. She sold the condo for $520,000, moved to an inland single-family home for $280,000, and now lives comfortably on her Social Security with the remaining $240,000 invested.

Important: Post-Surfside, older Florida condos require careful evaluation. Sometimes selling is the smarter financial move.

Story #4: Eliminating Mortgage in The Villages

Thomas & Betty – The Villages, FL
Ages: 70 & 72 | Home Value: $394,000 | Closed: June 2025

Their Situation: Thomas and Betty retired to The Villages 5 years ago but still owed $98,000 on their home with payments of $1,050/month. Between mortgage, HOA ($325/month), and activities, their budget was tight.

What We Did: HECM adjustable-rate that paid off mortgage and established $85,000 line of credit.

The Result:

• Eliminated $1,050/month mortgage (saved $12,600/year)
• Can now afford all The Villages activities guilt-free
• Line of credit for future golf cart upgrades, travel
• Reduced financial stress, increased quality of life

Betty’s words: “The Villages is paradise, but we were stressing about money. Now we can enjoy everything—golf, pickleball, concerts—without worrying about the mortgage payment.”

How to Choose a Florida Reverse Mortgage Lender

1. Verify Florida Licensing

All reverse mortgage lenders in Florida must be licensed by the Florida Office of Financial Regulation.

ARLO™ License: #MLD837

Verify any lender at: flofr.gov/sitePages/LicenseeSearch.htm

2. Check BBB Rating and Reviews

Look for:

• A+ or A rating
• BBB Accreditation
• Low complaint volume
• How they resolve issues

Red flag: F ratings or 100+ complaints (see comparison table below)

3. Compare Complete Costs

Get written quotes including:

• Origination fee (capped at $6,000 for HECM)
• Initial mortgage insurance (2% of home value for HECM)
• Third-party costs ($3,000-$6,000)
• Interest rate (determines balance growth)

Florida example on a $400,000 home:

4. Ask About Florida Experience

Questions to ask:

• How long have you been licensed in Florida? (We’ve been licensed since 2004)
• How many Florida loans do you close annually? (We close 100+ in Florida)
• Do you understand Florida’s insurance requirements?
• Can you explain Florida homestead exemption and Save Our Homes?
• Have you worked with clients in The Villages, condo buildings, coastal properties?
• What’s your typical closing timeline in Florida? (Ours: 45-60 days)

Top 20 Reverse Mortgage Lenders in Florida (BBB Comparison)

Source: Better Business Bureau data as of December 10, 2025. Updated February 2026.

What You’ll Actually Pay in Florida

1. Upfront Costs (At Closing)

Origination Fee
Capped at $6,000 for HECM loans.

Florida example on $400,000 home:
Maximum: $6,000, but ARLO typically charges: $4,500-$5,500

Initial Mortgage Insurance (HECM only)
2% of home value, guarantees non-recourse protection.

On $400,000 home: $8,000

Third-Party Costs

• Appraisal: $500-$700
• Title insurance: $1,500-$2,500
• Credit report: $30-$50
• Recording fees: $200-$400
• Flood certification: $15-$25
• Counseling: $0-$125

Total third-party in Florida: $3,500-$5,500

Grand Total on $400K Florida Home:
$5,000 (origination) + $8,000 (MIP) + $4,500 (third-party) = $17,500

2. Ongoing Costs (Your Responsibility)

Annual Mortgage Insurance (HECM)
0.5% of loan balance monthly.

Property Taxes (You Pay)
Florida averages 0.80-0.98% with homestead exemption. On $400,000 home:

• Assessed value: $350,000 (after $50K homestead exemption)
• Annual property taxes: $2,800-$3,400/year
• With Save Our Homes cap: Increases limited to 3% or inflation

Homeowners Insurance (You Pay) – THE BIG FLORIDA COST

This is where Florida gets expensive:

• Standard homeowners: $2,500-$6,000/year (post-hurricane crisis)
• Flood insurance: $500-$3,000/year (if in flood zone)
• Windstorm: $500-$2,000/year (some coastal areas)
• Total insurance: $3,000-$8,000+/year depending on location

Florida insurance reality: Coastal properties and older homes face highest costs. Budget $4,000-$8,000/year for comprehensive coverage in many areas.

3. Interest Rate Impact

Based on $200,000 initial draw, no additional draws

The Step-by-Step Process in Florida

Step 1: Initial Consultation (Week 1)

Speak with a Florida-licensed reverse mortgage specialist. They’ll discuss your situation, Florida’s insurance requirements, homestead benefits, and whether reverse mortgages fit your needs.

Time: 30-60 minutes | Cost: Free

Step 2: HUD Counseling (Week 1-2)

Required by law. Complete counseling with HUD-approved agency.

Good news for Florida: Florida doesn’t require in-person counseling. Complete by phone from home.

Time: 60-90 minutes | Cost: $0-$125

Step 3-9: Application Through Funding

Standard process: application, financial assessment, appraisal, underwriting, closing, 3-day rescission, funding.

Florida-specific considerations:

• Insurance verification (flood zone status, windstorm requirements)
• Condo recertification status (post-Surfside laws)
• HOA financial health review (for condos)

Total Florida Timeline: 45-60 days

Florida-Specific FAQ

HUD-Approved Counseling Agencies in Florida

[INSERT YOUR EXISTING HUD COUNSELING TABLE HERE]

Good news: Florida doesn’t require in-person counseling. Complete by phone from home. Most agencies offer free or low-cost counseling ($0-$125).

Top Florida Cities for Reverse Mortgages

We serve homeowners throughout Florida:

Jacksonville | Tampa | The Villages | Miami | Orlando | St. Petersburg | Fort Lauderdale | Naples | Sarasota | Cape Coral

Additional markets: Fort Myers, Clearwater, Palm Bay, West Palm Beach, Pompano Beach, Lakeland, Davie, Boca Raton, Melbourne, Deltona, Boynton Beach, Deerfield Beach, Palm Coast, Port St. Lucie, Bradenton, North Port, Ocala, and more.

Ready to Take the Next Step?

Option 1: Get Your Instant Quote

Option 2: Speak with a Licensed Florida Expert

Call (800) 565-1722 to speak with Michael Branson (CEO, NMLS #14040), Cliff Auerswald (President, NMLS #14041), or one of our Florida-licensed reverse mortgage specialists.

We’ll discuss:

• Your specific situation and retirement goals
• Florida’s insurance requirements and costs
• Homestead exemption and Save Our Homes benefits
• How much you qualify for
• Current rates and complete cost breakdown
• Alternatives if a reverse mortgage doesn’t fit

Florida residents: We’re licensed by the Florida Office of Financial Regulation (License #MLD837).

About All Reverse Mortgage, Inc. (ARLO™)

Since 2004, reverse mortgages have been our only business. This specialization means we understand Florida’s unique insurance challenges, homestead protections, hurricane considerations, and what makes the Sunshine State different.

Our credentials:

• A+ BBB Rating with zero complaints (updated February 2026)
• 4.94/5 stars from 500+ verified reviews
• 99% positive review rating
• 20+ years exclusive reverse mortgage focus
• Fully licensed in Florida (Office of Financial Regulation #MLD837)
• Pioneers of the first fixed-rate jumbo reverse mortgage (2006)

Meet our team:

Michael G. Branson – CEO (NMLS #14040)
45 years in mortgage banking, 20 years exclusively in reverse mortgages. Forbes Real Estate Council member.

Cliff Auerswald – President (NMLS #14041)
27 years in mortgage banking, 20+ years exclusively in reverse mortgages. Co-creator of ARLO™ Reverse Mortgage Calculator.

Additional Florida Resources