By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
Short answer: No.
A reverse mortgage does not remove, reduce, or reset your Florida homestead exemption.
You keep your exemption. You keep your Save Our Homes cap. You keep your creditor protections.
From your county’s perspective, nothing has changed — because legally, nothing has.
Now let’s break down what actually matters in Florida.
What Makes Florida Homestead Protection So Powerful
Florida’s system is built around long-term tax savings and asset protection.
If your home is your primary residence, you may qualify for:
- Up to $50,000 in property tax exemptions
- The Save Our Homes (SOH) cap, limiting annual assessment increases to 3% or CPI
- Unlimited creditor protection under Article X, Section 4
Over time, the SOH cap creates a widening gap between your home’s market value and assessed value — which translates into real, compounding tax savings the longer you stay put.
All of this hinges on two things:
- You own the home
- You live in it as your primary residence
Not whether there’s a loan attached.
Why a Reverse Mortgage Doesn’t Affect Your Exemption
A reverse mortgage is simply a lien, not a transfer of ownership.
- You stay on title
- You live in the home
- You remain responsible for taxes and insurance
Florida’s homestead rules don’t care if your home is financed. They only care that you own and occupy it.
In fact, a reverse mortgage depends on those same conditions — if you move out or transfer ownership, the loan becomes due.
Your Save Our Homes Cap Stays Exactly Where It Is
This is the biggest concern for Florida homeowners.
A reverse mortgage does not reset your SOH cap.
That cap only resets when ownership changes — such as:
- Selling the home
- Certain title transfers
Borrowing against your equity is not a transfer.
So if you’ve built up years of protected value under SOH, you keep every bit of it.
What Actually Causes You to Lose Your Exemption
It’s not the loan — it’s life changes.
You could lose your homestead exemption if you:
- Move out permanently
- Stop using the home as your primary residence
- Rent it out full-time
- Transfer ownership
These would affect your exemption with or without a reverse mortgage.
Florida-Specific: What About Portability?
Florida offers something most states don’t: portability.
If you move to a new homestead within Florida, you may be able to transfer up to $500,000 of your SOH benefit to the new property.
A reverse mortgage does not prevent portability.
However:
- The loan must be resolved (typically through sale or payoff)
- You must establish a new primary residence
This matters if you’re considering downsizing or relocating within Florida.
Are You Eligible for a Reverse Mortgage?
(Find out in 60 seconds)
What Happens When the Homeowner Passes Away
When the last borrower passes:
- The homestead exemption is removed
- The SOH cap resets
- The home is reassessed at market value
At the same time, the reverse mortgage becomes due.
Heirs typically have about six months (extensions possible) to:
- Sell the home, or
- Refinance into a traditional mortgage
The tax increase happens because of the ownership change, not because of the reverse mortgage.
Does a Reverse Mortgage Increase Property Taxes?
No.
Your taxes can still change due to:
- Market conditions
- Millage rate changes
- Loss of exemption eligibility
But the loan itself does not trigger any increase.
The Bottom Line
A reverse mortgage lets you access your equity without giving up:
- Your $50,000 homestead exemption
- Your Save Our Homes cap
- Your constitutional creditor protections
You’re not selling your home. You’re unlocking part of it.
See What You Could Access
If you’re a Florida homeowner, your equity may be one of your most valuable retirement tools.
Get a personalized estimate in about 60 seconds — no obligation, just your numbers.
FAQ
Will I lose my Florida homestead exemption if I get a reverse mortgage?
No. As long as you own and live in the home, your exemption stays in place.
Does a reverse mortgage reset my Save Our Homes cap?
No. The cap only resets on a change of ownership, not from borrowing.
Can I still transfer my homestead benefits if I move?
Yes. Florida’s portability rules still apply, assuming you meet the requirements.
Do I still own my home?
Yes. You remain on title. The lender only has a lien.
What happens to my taxes after I pass away?
The exemption is removed and the property is reassessed, which may increase taxes for heirs.
