Reverse mortgages in Florida have become increasingly popular over the past 5 years as seniors have discovered what a viable option they are to secure a more financially comfortable retirement.  A few worthy reasons seniors across the state have adopted reverse mortgage programs include paying off existing mortgage debt to rid themselves of their mortgage payment; to create a monthly stream of income that enables them to afford a more comfortable lifestyle; to make improvements to their home or basic maintenance with a lump sum of cash.  There are endless uses for the additional funds a senior receives from a reverse mortgage.

Having only minimal qualifying requirements makes the reverse mortgages in Florida relatively easy to obtain.  Ample equity in their home is the only essential ingredient to qualify.  Income or other assets and credit scores are not considered when qualifying. But because of this years' decline in Florida real estate, seniors in some parts of the state have found that having adequate equity in their homes is not as certain as it used to be. As the real estate market in Florida is now clearly declining, the amount of home equity that seniors have is shrinking, making it more difficult for many to obtain a reverse mortgage.   But not all parts of the state have been impacted to the same degree.

Miami Reverse Mortgages

One of the hardest-hit markets in Florida, Miami has seen home values drop by as much as 25% in some communities. Seniors are more likely to qualify for only $150,000 on their current home value of $300,000, where they once could qualify for a $200,000 reverse mortgage on the same home, valued at $400,000. On average, home values have declined 18% in the greater Miami area. As if declining values were not bad enough, Miami County is now widely-recognized as a "declining market".  At this point, automatic reduction on loan amounts of 5-6% for jumbo programs in Miami are common for most Florida reverse mortgage lenders. However, FHA reverse mortgage programs remain the most common and are not subject to these additional automatic cuts. 

Tampa Reverse Mortgages

The Tampa real estate market however, is doing better than Miami's.  With an average home price decline of 9% year over year, versus Miami's 18% decline, seniors in the Tampa have retained more home equity.  However, one major jumbo reverse mortgage lender has announced a automatic 6% cut to loan amounts in Tampa, since they consider the area is a declining market. Fortunately, FHA reverse mortgages remain the top choice.

Jacksonville Reverse Mortgages

Unlike most of Florida, Jacksonville has managed to altogether avoid the "declining market" stigma. With the strongest real estate market in Florida, perhaps owing to a strong job center, the median home price has declined 6% in the greater metropolitan area of Jacksonville. Jumbo reverse mortgage lenders have not announced automatic loan amount reductions. Still, the market has seen some declines, making it a good time to take advantage of the reverse mortgage and use the equity while you still have it. Seniors hope their Jacksonville real estate market will remain strong relative to the Tampa or Miami markets.