The short answer: A reverse mortgage lets homeowners age 62 and older borrow against their home equity without monthly loan payments. It is still a mortgage. The loan comes due when the last borrower dies, sells or leaves the home for good, and it can go into default if taxes, insurance or upkeep are not paid. Florida's homestead protections do not erase a mortgage that an owner signs on purpose.
This guide explains general rules in plain language. It is not legal or financial advice, and Florida Senior Support is not a law firm, financial advisor or insurance agency. For advice about your own situation, talk to a licensed professional.
What Is a Reverse Mortgage?
The most common kind is the Home Equity Conversion Mortgage, or HECM. It is insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). The Consumer Financial Protection Bureau (CFPB) says a HECM is for homeowners who are 62 or older and who live in the home as their main residence.
The loan is not free money. Interest and fees are added to the balance each month, so the debt grows and home equity shrinks over time. Most reverse mortgages give you three business days after closing to cancel, according to the Federal Trade Commission (FTC).
The 2026 federal limit
HUD sets a cap on the home value used to figure a HECM. For loans with case numbers assigned from January 1 through December 31, 2026, HUD lists the nationwide maximum claim amount as $1,249,125. This number is a ceiling for the math. It is not the amount a person can borrow. The loan amount depends on things like age, interest rate and home value.
Required counseling
For a HECM, federal rules require a talk with an independent, government-approved housing counselor first, says the FTC. The FTC adds that counseling typically costs about $125, which can be paid from the loan, and that no one can be turned away because they cannot pay. The CFPB says you can speak with a counselor while you are still deciding.
What the Borrower Must Keep Doing
A reverse mortgage has no monthly loan payment. It does have rules. The FTC and CFPB list these duties:
- Pay property taxes and homeowners insurance.
- Pay homeowners association (HOA) fees, if the home has them.
- Keep the home in good repair.
- Live in the home as your main residence.
- Have no unpaid federal debt, such as back taxes.
Some lenders require a set-aside account to cover taxes and insurance, including flood insurance, according to the FTC. If a borrower does not meet these duties, the lender can call the loan due. That is a default, and it can lead to foreclosure, which is the legal process a lender uses to take a home.
Florida homeowners know that insurance costs have been climbing. A reverse mortgage does not remove that bill. The insurance premium and the property tax bill must still be paid, so it helps to understand those yearly costs before talking to a lender. Our guide to Florida property tax exemptions for seniors explains the homestead exemption and other tax breaks.
When the Loan Comes Due
Federal rules in 24 CFR 206.27 list the main triggers. In plain terms, a HECM can become due when:
- The last surviving borrower dies and no other borrower lives in the home.
- All borrowers sell or transfer title.
- The home stops being any borrower's main residence.
- A borrower is away for more than 12 months in a row because of physical or mental illness, and no other borrower lives there. HUD must approve calling the loan due in this case.
- Property taxes or insurance go unpaid, or another loan term is broken.
This is why a long stay in a nursing home or rehab facility matters. A short stay is different from more than 12 months away.
Protections for a Spouse Who Is Not on the Loan
Sometimes only one spouse is a borrower. For HECMs with FHA case numbers on or after August 4, 2014, HUD rules can delay the due date for an "eligible non-borrowing spouse." The CFPB explains that the spouse generally must:
- Have been married to the borrower when the loan closed and stayed married until the borrower died.
- Be named as a non-borrowing spouse in the loan papers.
- Have lived in the home at closing and keep living there as a main residence.
- Keep meeting the loan rules, such as paying taxes and insurance.
Such a spouse does not receive any money from the loan. The rules differ for loans made before August 4, 2014, so a lender or housing counselor can explain which set applies.
What Heirs Can Do
When no borrower or eligible spouse remains, the loan is due. The CFPB says heirs have these options:
- Keep the home: repay the loan, often by getting their own loan.
- Sell the home: repay the balance. If the balance is more than the home is worth, they can sell for at least 95% of the appraised value, and the mortgage insurance covers the gap.
- Walk away: turn the home over to the lender.
After a due-and-payable notice, heirs have 30 days to buy, sell or turn over the home. The CFPB says more time, up to six months, may be available to sell or arrange a loan. If the home is worth more than the loan, the heirs keep the difference.
What It Costs
The FTC says costs include origination fees, closing costs, servicing fees, interest and mortgage insurance premiums. Origination, closing and servicing costs and interest rates vary by lender. Mortgage insurance premiums are usually the same across lenders. Federal rules in 24 CFR 206.105 allow an upfront premium and a monthly premium, each with a set limit, and HUD can change them by notice. Upfront costs can make the loan expensive for people who stay a short time or borrow a small amount.
A counselor can walk through each cost line by line. The CFPB also suggests asking what happens if you sell, move to a nursing home or die.
How Florida's Homestead Law Fits In
Florida's Constitution, Article X, Section 4, protects a homestead from forced sale by a court to pay most debts. The text lists exceptions: unpaid taxes and assessments, debts for buying, improving or repairing the home, and debts for labor on the property.
The same section also says the owner of a homestead, joined by a spouse if married, may transfer the home "by mortgage, sale or gift." In other words, the Constitution allows an owner to mortgage a homestead. The text does not say a mortgage is shielded from foreclosure. A mortgage a person signs is a different thing from unsecured debt, such as a credit card balance.
Two other points are worth knowing. The same section says the homestead protections pass to a surviving spouse or heirs of the owner. It also limits who can receive a homestead in a will when the owner leaves a spouse or minor child. Because these rules can affect a family's plans, an estate planning attorney can explain how they apply.
The homestead property tax exemption is a separate benefit. The Florida Department of Revenue says it applies when the property is the owner's permanent residence, and the county property appraiser decides whether a home qualifies. Ask your property appraiser how a move or a long absence could affect it.
Watch for Scams and Pressure
The FTC warns about these red flags:
- Pressure to sign quickly. The FTC says to walk away.
- Being told you must buy an annuity, long-term care insurance or another product to get the loan. In some cases, insisting on this is illegal.
- Home improvement salespeople who push a reverse mortgage, especially after a storm.
Report fraud at ReportFraud.ftc.gov. Our scam alert for Florida seniors covers other common tricks.
Questions to Bring to a Professional
- What are all the upfront and ongoing costs, in dollars?
- What happens to my spouse or anyone else living with me?
- What are my other options, and how do they compare in cost?
- What happens if I move to a care facility? Our guide to the average cost of assisted living in Florida shows typical price ranges.
Some people also talk with a financial planner. See how to find the right financial planner.
Where to Get Free Help
- HUD-approved housing counselors: 1-800-569-4287, or use HUD's online counselor search. The CFPB lists this number.
- CFPB: 1-855-411-2372.
- Florida Senior Legal Helpline: 1-888-895-7873 (age 60 and older, income guidelines apply, weekdays 9 AM to 4:30 PM). See our guide to free legal help for Florida seniors.
- Florida Bar Lawyer Referral Service: 1-800-342-8011.
- Florida Elder Helpline: 1-800-96-ELDER (1-800-963-5337).
Disclaimer: This article is for informational purposes only and does not constitute medical, financial, or legal advice. Readers should consult a qualified healthcare provider for medical concerns, a financial advisor for financial planning, and an attorney for legal matters. The resources and programs mentioned are subject to eligibility requirements and availability, which may vary. While we strive for accuracy, the information provided may not reflect the most recent updates. Always verify details with official sources or professionals before making decisions based on this content.