New Florida Law Lowers Taxes on Reverse Mortgages 

Important Note: When you click on this video, certain personal information may be sent to the video provider (such as YouTube, Vimeo, etc.). To learn more about our privacy practices, please review our Privacy Notice.

Great news for Florida residents!  

Governor Ron DeSantis recently signed House Bill (HB) 7073 into law, effective July 1, 2024, which changes some requirements for reverse mortgages in Florida. One of the significant changes involves the “documentary stamp tax,” that applies to real estate documents, including mortgages. 

Previously, if you took out a reverse mortgage on a property in the state of Florida, the documentary stamp tax was applied to the total mortgage lien amount, even if you couldn’t access that full amount. This often resulted in taxes being assessed on amounts significantly higher than the actual loan received. Now, the tax will only apply to the principal limit amount – the maximum amount you can actually receive from a reverse mortgage. 

What does this mean for Florida residents? 

This change means if you are looking to obtain a reverse mortgage in Florida, you won’t have to pay the documentary stamp tax on money you don’t have access to, potentially saving you a considerable amount in closing costs on a reverse mortgage. 

Back in March, the National Reverse Mortgage Lenders Association (NRMLA) wrote a letter of support for the bill stating, “For far too long, Florida reverse mortgage borrowers have been forced to pay documentary stamp taxes on the stated mortgage amount rather than the principal limit. That is why this Bill is so critically important for Florida reverse mortgage borrowers.” Longbridge Financial is a proud supporter and member of NRMLA.  

We hope this information is helpful and if you have any questions about how this new law might affect your reverse mortgage plans, please don’t hesitate to contact our team at your convenience. 

Receive a Free Information Kit

Name(Required)
Address(Required)
Please enter a number from 62 to 130.
To qualify, must be 62 or older
Please enter a number greater than or equal to 1.
Proceeds based on appraised home value.
Please enter a number greater than or equal to 0.
(if applicable)
Hidden

Co-op properties, rental homes, and rental apartments do not typically qualify. Contact a Longbridge specialist for more information.

By submitting your phone number you are providing your signature and express “written” consent to having Longbridge Financial LLC or our mortgage partners contact you about your inquiry at the phone number you have provided. You agree to be contacted via a live or automated prerecorded telephone call, text message, or email even if you have previously registered on a “do not call” government registry or requested Longbridge to not send marketing information to you. You understand that your telephone company may impose charges on you for these contacts, and you are not required to enter into this agreement as a condition of any Longbridge products or services. You understand that you can revoke this consent at any time by calling Longbridge Financial at 855-523-4326.

For information on how we collect and use personal information, please see our Privacy Notice.

Hang on — stay and get your free quote the easy way.

Real customers share how a reverse mortgage helped them live worry-free.

Too much information? We understand. Just provide your name and number and a loan officer will call with your free quote.

*required
This field is for validation purposes and should be left unchanged.

By submitting your phone number you are providing your signature and express “written” consent to having Longbridge Financial LLC contact you about your inquiry at the phone number you have provided. You agree to be contacted via a live or automated prerecorded telephone call, text message, or email even if you have previously registered on a “do not call” government registry or requested Longbridge to not send marketing information to you. You understand that your telephone company may impose charges on you for these contacts, and you are not required to enter into this agreement as a condition of any Longbridge products or services. You understand that you can revoke this consent at any time by calling Longbridge Financial at 855-523-4326.

For information on how we collect and use personal information, please see our Privacy Notice.