Reverse Mortgage in Delray Beach: HECM Rules for Condos and Houses

Short answer

A Delray Beach owner 62 or older may qualify for a reverse mortgage (HECM) that pays out home equity with no monthly mortgage payment, after counseling with a HUD-approved counselor, as long as they keep paying taxes, insurance and HOA or condo dues and maintain the home. With the median Delray Beach condo or townhouse at $320,000 and the median house at $760,000 in the third quarter of 2026, both under the $1,249,125 HECM limit, the building's HUD approval and Delray's 25-year senior exemption are the local details to check. QMS Lending connects you with reverse mortgage lenders, subject to credit approval and property eligibility.

Delray Beach prices and the 2026 HECM limit, as of October 2026

The 2026 HECM maximum claim amount is $1,249,125 under HUD Mortgagee Letter 2025-22, for case numbers assigned in calendar 2026. MIAMI REALTORS third-quarter 2026 numbers for the City of Delray Beach, as of October 2026:

• Townhouses and condos: median sale price $320,000, up 15.1% from a year earlier, on 139 closed sales. 81 of those sales were paid in cash. Median time to contract was 51 days.
• Single-family homes: median $760,000, about flat (up 0.3%), on 126 closed sales, versus a $655,000 median for all of Palm Beach County. Median time to contract was 32 days.

Delray has more condo and townhouse sales than house sales, and a large share of retirees, so many local reverse mortgage questions start with a condo. A condo value up 15% in a year helps, because the appraisal is the base for the loan. A house near the median is still about $489,000 under the HECM limit, so the full appraised value counts.

Common Delray uses: pay off an existing mortgage to stop the monthly payment, keep a growing line of credit for later, or use a HECM for Purchase to move from a house into a one-story condo or villa without a monthly mortgage payment. General rules, including non-borrowing spouses and repayment, are in our Florida reverse mortgage guide. Rates vary daily; call for today's pricing.

Delray condos: HUD approval and Florida's condo safety rules

HUD lists two ways a condo can qualify for a HECM: the project is HUD-approved, or the unit meets FHA single-unit approval requirements. HUD Mortgagee Letter 19-13 caps single-unit approvals at 10% of units in projects with 10 or more units, and at two FHA loans in smaller projects. In large older complexes, that cap can fill up.

• Search the association on HUD's FHA-approved condo list under Palm Beach County and Delray Beach. Many complexes are registered under the association's legal name, not the name on the sign.
• An Expired status means the project was approved once. Recertification is up to the board.
• The lender will request a condo questionnaire covering budget, reserves, litigation and owner occupancy.

Many Delray condos east of I-95 and along the Intracoastal are three stories or more and decades old. Under the 2022 law summarized in the Florida Senate's SB 154 analysis, those buildings need a milestone inspection at 30 years and every 10 years after, and a structural integrity reserve study; structural reserves cannot be waived after December 31, 2024. A pending special assessment or a big jump in dues raises your property charges in HUD's financial assessment. Ask the manager for the current budget and any assessment notice before you apply.

Delray Beach senior exemptions, as administered by the Palm Beach County Property Appraiser

You keep title with a HECM, so your homestead exemption stays. The Palm Beach County Property Appraiser (pbcpao.gov) lists these senior benefits for Delray Beach owners, as of October 2026:

• County limited-income senior exemption: $25,000 off county taxes for owners 65 or older with homestead and 2026 household income of no more than $38,686. Tax-exempt bond interest and non-taxable Social Security are not counted.
• Delray Beach city senior exemption: $25,000 off city taxes under the same tests.
• 25-year "super senior" exemption: the Property Appraiser lists only Boynton Beach and Delray Beach as offering it. You must meet the income test, have owned and lived in the home at least 25 years, and have a market value under $250,000 when you apply. Florida law sets this exemption equal to the assessed value for the adopting government's taxes.

File with form DR-501SC by March 1. For scale, the Property Appraiser shows Delray Beach's city operating millage at 6.1611 for 2025 and 6.4371 proposed for 2026, plus a separate downtown development authority levy for properties inside that district. Lower taxes mean lower property charges in the HECM financial assessment, which can shrink or avoid a set-aside.

What you keep paying, and Delray's home repair program

Under 24 CFR 206.205 you must keep paying property taxes, special assessments, hazard insurance, flood insurance where required, and condo, PUD and HOA fees on or before the due date. A Life Expectancy Set-Aside can cover taxes and insurance; it does not pay condo or HOA dues. If charges go unpaid and no loan funds remain, the HECM can become due and payable.

The home must also meet FHA property standards at appraisal, and you must keep it maintained. The City of Delray Beach runs a Housing Rehabilitation Program for owner-occupants with very low to moderate income, with project costs capped at $85,000 or 51% of the home's value, secured by a lien that is repaid if you sell or stop living there. As of October 2026 the city's page says the program is temporarily closed, so check its status before counting on it. Any existing city lien has to be addressed with the lender before a HECM closes.

HUD costs as of October 2026: 2% initial mortgage insurance at closing, 0.5% annual on the balance, and an origination fee capped at $6,000.

Counseling and next steps with QMS Lending

Before you apply, you must complete a session with a HUD-approved HECM counselor. Find one through the CFPB counselor search; sessions are often by phone.

If a HECM is not a fit, a HELOC or fixed second mortgage may work, with a monthly payment and subject to credit approval. Buying or refinancing instead? See our Delray Beach mortgage broker page, or compare nearby with reverse mortgage in Boca Raton.

QMS Lending is an independent mortgage broker in Miami, FL, NMLS #1781090, working with 100+ lenders in English and Spanish. Michael Fernandez, NMLS #1491775. Call 305-425-1990 with your address, age and any current mortgage balance.