Florida, well known as the Sunshine State, is a favorite retirement spot for many reasons. From its white sand beaches and sunny weather to its low cost of living, Florida has the amenities and comforts that many seniors wish for in retirement. According to the United States Census Bureau, 421,778 adults 65 years old+ call Florida home.1
Two significant expenses that seniors often consider in retirement are healthcare and housing. Florida’s healthcare and housing costs are both below the US average.2 An added benefit of living in Florida is that the residents are not charged state income or estate taxes.3 However, no matter where you retire you should have a financial plan in place to prevent you from outliving your retirement savings.
Many senior homeowners in Florida use a reverse mortgage as part of their retirement plan. In fact, 24,069 seniors in Florida have taken out a reverse mortgage on their home in 2018.4 Florida’s most popular cities for reverse mortgages in 2018 are in the table below.4 The principal limit is the amount of money a reverse mortgage borrower can receive from the loan.
|City||Reverse Mortgages in 2018||Average Initial Principal Limit|
|Port Saint Lucie||516||$115,698|
A reverse mortgage is a loan exclusively for senior homeowners 62 years of age or older. If you are considering relocating to a retirement destination like Florida, you may be able to use a Home Equity Conversion Mortgage (HECM)-for-Purchase to buy your retirement home. HECM-for-Purchase borrowers can use the sale of their current home as the down payment, and a reverse mortgage to finance the new house. This allows borrowers to purchase a new home without having to pay monthly mortgage payments in retirement.5
Reverse mortgages help some seniors live a more comfortable retirement by providing a financial cushion. Whether you use your reverse mortgage to eliminate your monthly montage payment,5 to set up a line of credit for use in case of emergency, or to cover ongoing monthly expenses, it may help you live more comfortably too.
If you are a senior living in or looking to relocate to Florida or another popular retirement area, a reverse mortgage may be a smart tool to add to your retirement plan. A licensed advisor can speak with you to help you decide. Call 1 (800) 976-6211 to speak with someone or fill out the calculator above to see an estimate of how much you could receive.
1United States Census Bureau. Quick Facts Florida https://www.census.gov/quickfacts/fl
2 Missouri Economic Research and Information Center. Cost of Living Data Seniors Third Quarter 2018. https://www.missourieconomy.org/indicators/cost_of_living/
3 State of Florida.com. Florida Tax Guide. https://www.stateofflorida.com/taxes.aspx
4Department of Housing and Urban Development. HUD FHA HECM Single Family Portfolio Snap Shot. https://www.hud.gov/program_offices/housing/rmra/oe/rpts/hecmsfsnap/hecmsfsnap
5You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.