Transamerica HomeFirst is offering reverse mortgages in Florida - potentially one of the nation's largest markets for such loans.

Transamerica's reverse loans, which mainly appeal to senior homeowners, are also available in California, Connecticut, New Jersey, New York, and Pennsylvania.

Reverse mortgages generally pay homeowners a monthly installment based on the equity in their home. The loan is settled when the homeowner sells or moves out.

The loan is particularly suited for older homeowners because they tend to have built up large amounts of home equity.

Floridians over 60 years of age account for 25% of the state's population, or 3.2 million people, according to a spokeswoman at the Sunshine State's Department of Elder Affairs.

Many lenders consider reverse mortgages a loan product of the future. Last year 10,000 reverse mortgages were originated, according to the National Center for Home Equity Conversion, a not-for-profit research organization. That matched the number of reverse mortgages originated up until 1994.

Transamerica has been among the most aggressive reverse mortgage lenders. It now offers several kinds of reverse mortgages. And it has also purportedly approached the California Public Employees' Retirement System about offering reverse mortgages to its 900,000 members.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.