Reverse Mortgage in Miami: What City Homeowners 62+ Should Check First

Short answer

A reverse mortgage in Miami lets a homeowner 62 or older turn home equity into cash with no monthly mortgage payment, using a home value of up to $1,249,125 under the 2026 FHA HECM limit. In the City of Miami the deciding details are local: whether your condo building is FHA-approved, how your property taxes and insurance fit your budget, and whether you keep the city's $50,000 senior exemption. QMS Lending is a broker that connects Miami homeowners with reverse mortgage lenders; every loan is subject to approval and to HUD-approved counseling first.

Miami prices vs. the 2026 HECM limit, as of October 2026

Our statewide reverse mortgage guide covers the HECM rules in full. This page is about the City of Miami, where home values and building types change the math.

According to MIAMI REALTORS, in the third quarter of 2026 the City of Miami recorded:

• Single-family homes: median sale price $815,070 (up 5.9% from a year earlier) on 270 closed sales.
• Townhouses and condos: median sale price $555,000 (down 4.3%) on 582 closed sales, more than twice the single-family count.

HUD calculates what you can borrow from the age of the youngest borrower (or eligible non-borrowing spouse), the current interest rate, and the lesser of the appraised value or the HECM limit, which is $1,249,125 for FHA case numbers assigned on or after January 1, 2026. A median-priced Miami house or condo sits under that ceiling, so the appraisal drives your number.

Owners in neighborhoods where houses sell well above the limit only get credit for the first $1,249,125 of value. Some lenders offer private, non-FHA reverse loans for higher-value homes; their terms vary by lender, and we compare them side by side when the HECM cap leaves equity on the table.

Any existing mortgage must be paid off from the proceeds at closing. If your current balance is large, the money left over may be small, and that is worth knowing before you pay for an appraisal.

Miami condos: FHA approval decides first

With condos making up most City of Miami sales, the building is often the first hurdle. HUD allows a HECM on a condo only if the project is HUD-approved or the unit qualifies for FHA single-unit approval.

• Check the list. HUD's public FHA condo search shows each project's status: Approved, Expired, Rejected or Withdrawn. Expired is not the same as Rejected: it usually means approval was not renewed, and the association can reapply.
• Single-unit approval has a cap. Under HUD Handbook 4000.1, single-unit approvals are limited to 10% of the units in a project of 10 or more units, and to two FHA loans in a project of fewer than 10 units. In a large tower that may already have FHA loans, that cap can close the door.
• Milestone inspections and reserves. Florida law requires a milestone structural inspection for residential condo buildings three stories or taller at 30 years of age and every 10 years after, plus a structural integrity reserve study (SIRS) every 10 years. Results often lead to higher dues or a special assessment, and HUD's financial check counts your HOA dues against your budget.

Before anything else, send us the building name and unit number. We pull the FHA status and ask the association for its condo questionnaire, milestone inspection and SIRS status so you are not surprised halfway through.

Keep your City of Miami senior exemption

A HECM leaves the title in your name and requires that you live in the home, so it generally does not change your homestead exemption. Florida's homestead exemption can lower taxable value by as much as $50,000. If you are 65 or older, Miami-Dade and the City of Miami add more, and keeping those exemptions makes it easier to pass HUD's budget test.

As of October 2026, the Miami-Dade Property Appraiser lists these rules:

• Senior exemption: at least one owner 65 or older on January 1, with household income at or below $38,686 (the 2026 limit set by the Florida Department of Revenue). It renews automatically each year once granted.
• City of Miami amount: the city grants a $50,000 senior exemption. The Property Appraiser's 2026 benefit table estimates savings of about $368 in city tax and $262 in county tax, or $631 a year, based on proposed millage.
• Long-term resident senior exemption: the City of Miami has adopted it. If you have lived in the home at least 25 years, the market value was under $250,000 the first year you apply, and you meet the age and income limits, it removes the city portion of the tax. It does not apply to School Board or State taxes.

If you think you qualify and have never applied, do it with the Property Appraiser before you sit down with a counselor. Lower taxes mean lower required set-asides and more room in your monthly budget.

Costs, counseling and payout choices for Miami borrowers

Every HECM starts with a session with a HUD-approved counselor. HUD's toll-free line to find one is (800) 569-4287, and the CFPB counselor search for the Miami area, as of October 2026, lists a HUD-approved agency in Doral that offers reverse mortgage counseling in English, Spanish and Creole.

Costs HUD lists, as of October 2026:

• Initial mortgage insurance premium: 2%, charged at closing.
• Annual mortgage insurance premium: 0.5% of the outstanding balance.
• Origination fee: capped at $6,000.
• Servicing fee: up to $30 a month on fixed or annually adjusting loans, up to $35 on monthly adjusting loans.
• Third-party costs: appraisal, title, recording and Florida taxes on the mortgage.

Rates vary daily; call for today's pricing. A fixed-rate HECM pays one lump sum. An adjustable HECM can pay monthly for as long as you live there (tenure), for a set number of months (term), as a line of credit, or a mix. A line of credit can help cover insurance renewals and condo assessments as they come, instead of taking all the cash at once.

How QMS Lending helps Miami homeowners

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL, working with 100+ lenders. We do not lend reverse mortgages ourselves; we connect you with reverse mortgage lenders, check your building and your budget first, and explain each offer in English or Spanish.

We also price the alternatives, because a HECM is not always the right fit. A HELOC keeps your first mortgage but needs monthly payments; a cash-out refinance replaces it; selling and downsizing may cost less than any loan. You may qualify for one of these; all are subject to credit approval. Contact us or call 305-425-1990. See also our Miami mortgage broker page.