Reverse Mortgage in West Palm Beach: HECM Rules for Homeowners 62+

Short answer

A reverse mortgage in West Palm Beach 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. The city's third-quarter 2026 median house price of $599,500 and median condo price of $316,000 both sit well under that limit, so for most owners the appraisal, the condo building's FHA status and the tax and HOA budget decide the result (as of October 2026). You must finish HUD-approved counseling and keep paying taxes, insurance and HOA dues; QMS Lending is a broker that connects you with reverse mortgage lenders, subject to approval.

West Palm Beach values vs. the 2026 HECM limit

The full HECM rules are in our Florida reverse mortgage guide: the youngest borrower must be 62 or older, the home must be your principal residence, HUD-approved counseling comes first, and you must keep paying property taxes, insurance and HOA dues and keep the home in good repair, or the loan can come due. This page covers what is different in West Palm Beach.

Florida Realtors data published by MIAMI REALTORS for the City of West Palm Beach, third quarter of 2026 (as of October 2026):

• Single-family homes: median $599,500 on 222 closed sales, up 8.0% year over year.
• Townhouses and condos: median $316,000 on 186 closed sales, up 3.6%.

HUD Mortgagee Letter 2025-22 set the HECM maximum claim amount at $1,249,125 for FHA case numbers assigned on or after January 1, 2026. A median West Palm Beach house is worth less than half of that, so the cap rarely limits a typical owner here. Your amount depends on the appraised value, the age of the youngest borrower or eligible non-borrowing spouse, and the interest rate. Rates vary daily; call for today's pricing.

The top end is different. The average West Palm Beach house sold for $1,382,096 in the same quarter, so some owners of Intracoastal and historic-district homes are above the cap. HUD only counts value up to $1,249,125. Some lenders offer private, non-FHA reverse loans for higher-value homes; ages, fees and condo rules are set by each lender.

Any mortgage you still owe is paid off at closing from the proceeds, so a large existing balance can leave little cash.

Condos and 55+ communities: what HUD checks first

Much of West Palm Beach's senior housing is condos, including large 55+ condo communities in the western part of the city. For a HECM on a condo, HUD requires the project to be HUD-approved, or the unit to meet FHA single-unit approval rules.

• Look up the building on HUD's FHA condo search. Filter by Florida, Palm Beach County and the city; the status shows as Approved, Expired, Rejected or Withdrawn. Expired is not the same as Rejected; the association can apply again.
• Single-unit approval has a cap: HUD Mortgagee Letter 2019-13 limits single-unit approvals to 10% of the units in a project, and to two FHA loans in a project with fewer than 10 units.
• A house or townhouse in an HOA is not a condo. The FHA condo list does not apply to a single-family home in a homeowners association, but HUD still counts the HOA dues in your budget.
• Co-ops: cooperative units are not on HUD's list of eligible HECM property types.
• Older buildings: condo buildings three habitable stories or taller need a milestone inspection by December 31 of the year they turn 30, then every 10 years, plus a structural integrity reserve study. Repairs those reports call for often mean higher dues or a special assessment.

Send us the community name and unit before you pay for an appraisal. We check the FHA status and request the association's condo questionnaire.

HOA dues and your HUD budget review

HUD requires every HECM borrower to make timely payments on property taxes, hazard and flood insurance and HOA fees, and to have the resources to keep paying them. The lender verifies your income, assets, monthly living expenses and credit history, including whether you have paid taxes and insurance on time. In a 55+ community, monthly dues are often one of the largest fixed costs, so they carry a lot of weight in that review.

Gather these before counseling:

• Recent HOA or condo statements and any special assessment notices.
• Your latest tax bill or TRIM notice for the property.
• Current homeowners, wind and flood insurance declarations. New FEMA flood maps for Palm Beach County took effect December 20, 2024, and the City of West Palm Beach said more than 1,000 city properties were affected, so confirm your flood zone before assuming flood coverage is optional.
• Proof of income: Social Security, pension and retirement account statements.

A reverse mortgage is a loan, not free money. Interest, mortgage insurance and fees are added to the balance every month, so the balance grows and your equity shrinks. Falling behind on taxes, insurance or HOA dues, or failing to maintain the home, can put the loan in default and make it come due.

Palm Beach County senior exemptions in West Palm Beach

A HECM keeps the title in your name and requires that you live in the home, so it does not by itself change your homestead exemption, which can lower taxable value by as much as $50,000 (Florida Department of Revenue). Owners 65 and older may add the limited-income senior exemption. As of October 2026, the Palm Beach County Property Appraiser lists:

• Who qualifies: an owner 65 or older who already has homestead, with household income at or below $38,686 for 2026, based on the prior year's income. Tax-exempt bond interest and non-taxable Social Security are not counted.
• How much: $25,000 off county taxes and $25,000 off City of West Palm Beach taxes. It applies only to the listed taxing authorities, not school taxes.
• No long-term resident exemption here: in Palm Beach County only Boynton Beach and Delray Beach offer the extra exemption for owners of 25 years or more.
• How to apply: form DR-501SC with a copy of your federal Form 1040 or your Social Security 1099, filed with the Property Appraiser by March 1.

Example only: at 2026 proposed operating rates (county 4.5000 mills, city 8.1308 mills), $25,000 off each is worth about $113 in county tax and $203 in city tax, roughly $316 a year. It is not a large number, but it lowers the property charges HUD counts in your budget.

Counseling and costs for West Palm Beach borrowers

Counseling comes first. HUD's toll-free line to find a HUD-approved HECM counselor is (800) 569-4287. As of October 2026, the CFPB housing counselor search for ZIP code 33401 lists several HUD-approved agencies in West Palm Beach and nearby Riviera Beach that offer reverse mortgage counseling, in English and Spanish, and at some agencies in 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.

Example only: on a West Palm Beach house appraised at $600,000, the 2% initial mortgage insurance premium is $12,000, and the origination fee can be up to $6,000.

A fixed-rate HECM pays a single 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. In a condo or 55+ community, a line of credit can help cover dues increases and assessments as they come.

How QMS Lending helps West Palm Beach homeowners

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL, licensed in Florida and working with 100+ lenders. We do not make reverse mortgages ourselves. We connect West Palm Beach homeowners with reverse mortgage lenders, check the building, the flood zone and the tax and HOA budget first, and explain each offer in English or Spanish.

We also price the alternatives, because a HECM is not always the best fit. A HELOC keeps your first mortgage but requires 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 loans are subject to credit approval. Equal Housing Opportunity. Call 305-425-1990 or see our West Palm Beach mortgage broker page.