Reverse Mortgages in Miami Beach: Getting a HECM on a Condo

Short answer

Yes, if the building passes HUD's test: a Miami Beach condo owner 62 or older may qualify for a HECM only if the project is FHA-approved or the unit qualifies for FHA single-unit approval. Value is rarely the problem, since the Q3 2026 median Miami Beach condo sold for $495,000, far under the $1,249,125 HECM limit. The harder parts are the building approval, keeping dues and special assessments paid, and flood insurance. HUD-approved counseling is required, and every loan is subject to credit approval.

Miami Beach values and the 2026 HECM limit

HUD Mortgagee Letter 2025-22 sets the 2026 HECM limit at $1,249,125 for case numbers assigned January 1 to December 31, 2026. The loan is figured on the lesser of your appraised value or that limit. Our Florida reverse mortgage guide covers the statewide rules; this page is about the Beach.

Florida Realtors data published by MIAMI REALTORS for the City of Miami Beach, third quarter of 2026, as of November 2026:

• Townhouses and condos: 330 closed sales at a median of $495,000. The average sale was $1,166,589, pulled up by the luxury towers.
• 226 of those 330 condo sales were cash, about 68%.
• 1,601 condos were for sale at the end of the quarter, or 12.7 months of supply. Median time to contract was 91 days.
• Single-family homes: 56 sales at a median of $3,300,000, more than $2 million over the HECM limit.

So most Miami Beach condo owners are under the cap and the full appraised value can count. House owners, and owners of the most expensive condos, are figured at $1,249,125. For values far above the cap, the CFPB notes that some lenders offer proprietary reverse mortgages, which are not federally insured and are typically designed for higher home values. Those loans set their own condo rules.

A slow, supply-heavy condo market also matters at appraisal. With 12.7 months of supply, an appraiser may find fewer recent sales in your building, so be realistic about value.

Step one: FHA project approval or single-unit approval

HUD is clear: a condo is HECM-eligible only if it is in a HUD-approved condominium project or the unit meets FHA single-unit approval requirements. Check this before you pay for counseling or an appraisal.

• Look the building up. HUD's FHA condominium search lists approved projects and whether an approval is current or expired. Many older Beach buildings were approved years ago and let it lapse.
• Single-unit approval. If the building is not approved, the unit may still qualify on its own. HUD Mortgagee Letter 19-13 limits single-unit approvals to 10% of a project's units, and a project with fewer than 10 units can have no more than two FHA-insured mortgages. In a large tower, that 10% can already be used up.
• What blocks approval. Problems at the building level, such as weak finances, insurance gaps or pending litigation, can stop an approval. A building that works for a cash buyer may not work for a HECM.
• Condo-hotels. Units in buildings run like hotels are generally a different conversation. See condotel loans for how those are financed.

Fannie Mae's rules for a warrantable condo are not the same test as FHA's, but they often flag the same building issues. If your building fails both, our non-warrantable condo guide explains the alternatives.

Dues, special assessments and what happens if they go unpaid

Under 24 CFR 206.205, condominium fees are always the borrower's responsibility on a HECM, together with property taxes, hazard insurance and any required flood insurance. A reverse mortgage stops the mortgage payment, not the maintenance.

On the Beach, the bigger risk is the special assessment. Florida's post-Surfside condo laws pushed many buildings into large repair and reserve bills:

• Milestone inspections. Under Florida Statute 553.899, condo buildings three habitable stories or taller need a milestone inspection by December 31 of the year the building turns 30, and every 10 years after. The local agency may require it at 25 years based on conditions such as proximity to salt water. See what is a milestone inspection.
• Structural reserves. A Florida Senate analysis of SB 154 explains that buildings three stories or taller must complete a structural integrity reserve study every 10 years, and that after December 31, 2024 associations may not waive or underfund the required structural reserves. See what is SIRS.
• Your liability. Under Florida Statute 718.116, you are liable for every assessment that comes due while you own the unit, and the association has a lien to secure it. Unpaid assessments accrue interest at the rate in the declaration, or 18% a year if none is set.

If a large assessment hits after closing and you cannot pay it, the HECM servicer may use available loan funds to cover required property charges. If no funds are left, the servicer must notify you and HUD, and the loan can be called due and payable. Before you close, ask the association about planned repairs, the last milestone report and any assessments already voted. See what is a special assessment.

Some borrowers keep part of a HECM line of credit unused for exactly this reason: a reserve for the building's next big bill.

Flood insurance on a Miami Beach HECM

HUD says every HECM property must meet FHA flood requirements. On the Beach, that almost always means flood insurance:

• The City of Miami Beach says that under current FEMA maps, 93% of all buildings in the city are in the Special Flood Hazard Area, where flood insurance is required for federally backed mortgages.
• Miami Beach participates in FEMA's Community Rating System, which the city says gives most NFIP policyholders a 25% discount.
• In a condo, the association usually carries a building flood policy. The lender checks that the master policy meets FHA requirements. Ask whether you also need a unit policy for your contents and interior.
• Flood premiums are a property charge under 24 CFR 206.205. If the master policy premium jumps, it shows up in your dues; if you carry your own policy, it is your bill directly.

Bring the association's insurance certificate and the most recent budget to your first call. It speeds up the lender's review.

Miami Beach senior exemptions, millage and Amendment 3

Property taxes stay your bill with a HECM, so every exemption helps. Per the Miami-Dade Property Appraiser's 2026 senior exemptions table, as of November 2026:

• Senior exemption. For qualifying low-income seniors, Miami Beach adds a $50,000 city senior exemption on top of the $50,000 county senior exemption. The table estimates savings of about $304 in city tax and $262 in county tax.
• Long-term resident senior exemption. Miami Beach has adopted it, so qualifying long-term residents pay no city operating tax. Ask the Property Appraiser whether you meet the residency and value tests.
• Millage. The Property Appraiser's 2026 proposed millage comparison shows Miami Beach at 5.8060 mills for operations plus 0.2693 for debt service. County, school and district rates are added on top.

Amendment 3 passed on November 3, 2026 (about 62% yes, unofficial until certified). The non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028, indexed to inflation from 2029. Owners who become permanent Florida residents after December 31, 2026 start smaller and reach the larger amount in their fifth year of homestead. The non-homestead assessment cap drops from 10% to 5% from January 1, 2027 for non-school taxes. First bills affected arrive in November 2027; school taxes are unchanged.

Your homestead exemption stays with a HECM because you still own and live in the unit.

Counseling, costs and how QMS Lending helps

Per HUD, as of November 2026: you must be 62 or older, live in the home as your principal residence and meet with a HUD-approved HECM counselor before you apply. Mortgage insurance is 2% at closing and 0.5% a year on the balance. The origination fee is the greater of $2,500 or 2% of the first $200,000 of value plus 1% above that, capped at $6,000. On a $495,000 condo, that formula gives $6,950, so the $6,000 cap applies.

Under 24 CFR 206.27, the loan comes due when the last borrower dies or sells, or when no borrower lives there as a principal residence, including an absence of more than 12 consecutive months for illness. Many Beach owners spend summers elsewhere; short trips are fine, but the unit must stay your principal residence.

How we work a Miami Beach condo file:

• We check the building's FHA status first, before you spend money.
• We collect the budget, insurance certificate, milestone and assessment details from the association.
• We compare HECM and, where values call for it, proprietary reverse lenders across our 100+ lender network, in English or Spanish.

QMS Lending is an independent broker in Miami, FL. For buying or refinancing in the city, see our Miami Beach mortgage broker page, and for the mainland, reverse mortgages in Miami. Call 305-425-1990.