Can I sell my house with a reverse mortgage in the State of Florida?

Reverse Mortgage 101: the basics

A Reverse Mortgage is a type of loan that allows people 62 and older to borrow money against the equity in their home (home equity = the value of the house minus debt against it).

Unlike with a traditional mortgage, instead of making monthly mortgage payments to the lender, the borrower receives money from the lender, and the loan isn’t due until the owner(s):

  1. Move out;
  2. Sell the house;
  3. Fail to meet the loan obligations; (or)
  4. Die (in this case, the heirs assume responsibility for the loan).


How does a reverse mortgage work?

When someone takes out a reverse mortgage, they are borrowing against a portion of the equity. As mentioned above, the equity is the current market value minus the amount of loans still owed on it (i.e., if your home value is $250,000 and you owe $50,000, you have $200,000 in equity).

The money received isn’t taxable, and the borrower can either receive it in a single lump sum, in monthly payments, or as a line of credit, depending on what your needs are and the type of loan you choose.

During this period, the owner needs to keep paying property taxes and insurance, as well as to keep the house in good shape – if this is not done, the owner will be at risk of default and eventually foreclosure.


Can I sell my house with a reverse mortgage?

Since the Reverse Mortgage is a mortgage loan that can be repaid at any time without penalty, the answer is YES, you can! There are some specifics to the process, however if your home has appreciated in value and the amount you owe is smaller than what you can sell your house for, you can definitely do so. And, even if you think you owe too much, there’s a good chance it’s less than expected and, in the current real estate market, this might be the ideal time for you to sell your property – making sure to pocket that difference in!


Pros and Cons of Selling a House with a Reverse Mortgage


  • You will not face a penalty for paying off a reverse mortgage early
  • You get to keep the excessive proceeds, in case your home has appreciated in value


  • The process can be confusing and time-consuming
  • You may pay real estate transaction fees, as well as interest and lender fees


How Homeinc can help

If you are looking to sell your house with a reverse mortgage in the State of Florida, give us a call for a real-time evaluation of your property. We will help you save time – and money! – with listing agents, commissions, showings, and inspections. And what’s more: we will buy your house in cash, as-is, so you don’t have to worry about repairs, financing contingencies, and other hardships usually found in the regular reverse mortgage sale process.

We count with a team of knowledgeable licensed Title Company attorneys that will help throughout the process, including assisting with requests and communications with your reverse mortgage lender. In addition, we will make sure to communicate with you at all times to keep you updated on what is happening and to clarify any questions you may have, all in a simple, uncomplicated manner.



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