With its balmy year-round climate, beautiful beaches, and countless attractions, it is no wonder that Florida is a state which may people choose to retire in.
But enjoying all that Florida has to offer you as a retiree requires flexibility in your budget.
If you could use some more money during your retirement years, you may be able to unlock some of the equity in your home to get the cash you need.
What is a Reverse Mortgage?
When you apply for a reverse mortgage, you borrow against the equity in your home.
This is a lending product available specifically and exclusively to seniors.
You get to keep living in your home with a reverse mortgage, for the rest of your life if that is your wish.
Freedom to Use Your Reverse Mortgage Income
Any Way You Want
Reverse mortgages offer many benefits, but primary among them is the absolute flexibility of this type of loan.
Reverse mortgage funds are available to you as cash. Because they are cash, you can spend them as cash, saving them or spending them in any way you want.
There are zero restrictions. Here are a few common ways that seniors use reverse mortgage money:
- If your home requires repairs or you want to make enhancements to it, you can do so with the help of a reverse mortgage.
- Have plans to upgrade to a larger home or purchase a second home? You can use the reverse mortgage for the down payment.
- You can use a reverse mortgage to buy a new vehicle or make repairs to an existing one.
- If you are behind on your bills, the cash from a reverse mortgage can help you catch up, eliminating high interest debt.
- If you have medical expenses which you cannot cover right now, borrowing against the equity in your home may help you take better care of your health.
- Have grandchildren you want to send to college? You can put money towards their education with a reverse mortgage.
- Don’t have an emergency fund? You can save toward one out of a reverse mortgage.
- Keeping up with all your ongoing expenses is easier with a reverse mortgage to pad out your finances.
- You can use a reverse mortgage to fund a new business venture or invest in something.
- If there’s a vacation you have always wanted to take, a reverse mortgage may bring it within reach.
Benefits of Reverse Mortgages in Florida
Along with the freedom discussed above, here are the additional benefits of Florida reverse mortgages:
- The manner in which you receive your money is flexible too. You can choose between receiving the money all at once or in installments or even as a line of credit.
- It is likely that the reverse mortgage income you receive will not be taxable.
- The reverse mortgage only comes due after a maturity event such as, for example, the death of the last borrower.
- Because only a maturity event can cause the reverse mortgage to be due, there are no concerns about losing your home, even if you cannot afford to repay it.
Are You Eligible for a Florida Reverse Mortgage?
There are certain eligibility requirements in place to obtain a reverse mortgage. These include:
- You or a fellow borrower must meet the minimum age requirement of 62 years old.
- When you apply, your tax history, income, and credit score will be assessed.
- You cannot be behind on any home maintenance payments. If you are, catch up before you attempt to apply.
- The home in which you have the equity you are borrowing against has to be your primary residence, not a vacation home or second home.
- You must possess at least 50% equity.