| Seniors across the state of Florida have begun taking | | | | Overall, Miami has declined by 18% on average as |
| advantage of reverse mortgage programs more and | | | | compared to last year. With the new label of "declining |
| more over the past 5 years. This increase in the | | | | market," the Miami area now has more to worry about |
| popularity of the reverse mortgage is no surprise for | | | | than reduced home values. Most Florida reverse |
| those seniors that have been looking for viable ways | | | | mortgage lenders are automatically reducing the |
| to experience a more financially secure retirement. | | | | amounts that they will lend on homes in Miami by 5-6% |
| The funds seniors receive through reverse mortgage | | | | for their non-FHA reverse mortgage programs. FHA |
| programs are often used for such important purposes | | | | reverse mortgage programs are not affected by |
| as paying off existing mortgage debt to rid themselves | | | | these cuts. |
| of their mortgage payment; to maintain and improve | | | | Tampa Reverse Mortgages |
| their homes with a lump sum of cash; to create a | | | | Tampa is faring better than Miami. While Miami has |
| monthly stream of income that enables them to afford | | | | sustained a large drop in home prices, Tampa has |
| a more comfortable lifestyle. There is no end to the | | | | seen a 9% decline on average. If you are considering |
| usefulness of additional funds from a reverse | | | | a non-FHA reverse mortgage (often called a jumbo |
| mortgage. | | | | reverse mortgage) you will want to know that one |
| Because seniors need only adequate equity in their | | | | major lender has announced an automatic 6% cut to |
| home to qualify for a reverse mortgage in Florida, they | | | | loan amounts in the Tampa area. Another major |
| have been relatively easy to obtain. Such things as | | | | jumbo reverse mortgage lender has stopped offering |
| good credit scores, ample income and other assets do | | | | loans in the area entirely. However, the FHA reverse |
| not matter. But as of this year, seniors in many parts | | | | mortgage loan amounts have not been reduced and |
| of Florida have found that they have less certainty | | | | the program remains one of the best choices for |
| about the equity in their homes. Florida's real estate | | | | Tampa senior citizens. |
| market is now established on a declining path, and the | | | | Jacksonville Reverse Mortgages |
| amount of home equity that seniors have is diminishing. | | | | Jacksonville has managed to avoid the "declining |
| This is making it more difficult for many to qualify for a | | | | market" label so far, perhaps due to the strong |
| reverse mortgage. Not all areas of the state, however, | | | | employment base. The average home price in the |
| have been hit to the same degree. | | | | metropolitan area is down only 6%, making Jacksonville |
| Miami Reverse Mortgages | | | | one of the most resilient real estate markets in Florida. |
| Seniors in the Miami area could once qualify for a | | | | Still, the possibility of further declines exist, making it a |
| $200,000 reverse mortgage on a $400,000 home; | | | | good time to lock in a reverse mortgage to take |
| now they are likely to qualify for only $150,000 on their | | | | advantage of your home equity while it is still there. For |
| current home value of $300,000. Miami is one of the | | | | the seniors who live in Jacksonville and choose to wait, |
| hardest-hit real estate markets in Florida, with homes | | | | hopefully the real estate market will continue to hold its |
| dropping in value up to 25% in some communities. | | | | ground, unlike the cities of Miami or Tampa. |