What costs are involved in getting a reverse mortgage in Florida?

Reverse mortgages include costs such as FHA mortgage insurance, appraisal fees, origination fees, title charges, and closing costs. Many fees can be financed into the loan. Debbie Cooley Mortgage explains each cost upfront and helps Florida homeowners understand what they will—and won’t—have to pay out of pocket.

When Florida homeowners explore reverse mortgages, one of the most common questions is: “What will it cost?” Like any home loan, a reverse mortgage includes a mix of upfront and ongoing costs, some required by federal regulation and others based on normal real estate and lending services. Understanding these fees helps homeowners make informed decisions, especially when comparing a reverse mortgage to other products such as a conventional refinance, FHA loan, or VA mortgage—all services offered by Debbie Cooley Mortgage.

Upfront Mortgage Insurance Premium (UFMIP)
Reverse mortgages insured by the Federal Housing Administration (FHA) include an upfront mortgage insurance premium. This insurance protects the borrower and the lender by guaranteeing that you will never owe more than the home is worth. In Florida, where property values fluctuate by market area, this protection is especially valuable for retirees. The UFMIP is typically 2% of the home’s appraised value and is almost always financed into the loan.

Origination Fee
Lenders may charge an origination fee for handling the application, processing, underwriting, and coordination with FHA. Federal law caps the fee at $6,000. Debbie Cooley Mortgage clearly discloses any origination costs and compares them with those of other loan options if you’re deciding between products.

Appraisal Fee
An appraisal is required to determine the home’s current market value. Costs vary depending on the property type, size, and location, especially in areas like Trinity and New Port Richey where appraisal availability affects scheduling.

Third-Party Closing Costs
These typically include:

  • Title search and title insurance
  • Recording fees
  • Survey (if needed)
  • Credit report
  • Government recording fees
  • Flood certification (if applicable)

Florida title fees may vary by county, but most fall within standard state guidelines. Title insurance protects against issues such as liens, ownership disputes, or record errors.

Counseling Fee
All reverse mortgage borrowers must complete a counseling session through a HUD-approved agency. Counseling fees are regulated and generally modest, often under $200. This session ensures borrowers clearly understand the loan terms, obligations, and alternatives.

Ongoing Costs
Borrowers must continue paying:

  • Property taxes
  • Homeowners insurance
  • HOA dues
  • Home maintenance costs

These ongoing obligations are essential for staying in compliance with FHA requirements.

Can costs be financed?
Most upfront costs—including mortgage insurance, origination, and closing fees—can be rolled into the loan, minimizing out-of-pocket expenses. Many Florida retirees use this structure to avoid tapping cash reserves.

At Debbie Cooley Mortgage, we walk homeowners through every fee, compare multiple loan types, and evaluate which product makes the most financial sense. Sometimes a reverse mortgage is ideal; other times, a conventional, FHA, or VA loan better supports your goals.

For detailed cost guidelines, FHA publishes an official breakdown.

🔗 Reference Link:

https://www.hud.gov/program_offices/housing/sfh/hecm/counsel