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A reverse mortgage lets homeowners 62 and older turn built-up equity into income without moving or making monthly payments. The equity you draw, plus interest, is repaid when you leave the home.
What a reverse mortgage gives — and takes
The federally insured HECM converts a share of your home equity into a lump sum, monthly income, or a line of credit. You keep the title and make no monthly mortgage payment.
In return, the balance grows over time as interest accrues, shrinking the equity you or your heirs eventually keep. It's a trade of future equity for present cash flow.
- Age 62+: all borrowers on the title must be at least 62 to qualify.
- No monthly payment: the loan is repaid when you sell, move out, or pass away.
- Non-recourse: heirs never owe more than the home is worth at repayment.
- Ongoing obligations: you still owe property taxes, insurance, and upkeep.
Read the full HECM rules and counseling requirements on the reverse mortgage guide. If you want cash but prefer to keep making payments, compare a cash-out refinance instead, or talk through options with a Michigan lender before committing.
Frequently asked questions
Who qualifies for a reverse mortgage in Michigan?
The federally insured HECM requires you to be at least 62, live in the home as your primary residence, and hold significant equity — often around 50% or more. You also must complete a HUD-approved counseling session. The home stays in your name; you're borrowing against its value, not selling it.
Do I still pay property taxes with a reverse mortgage?
Yes, and this is the biggest risk in Michigan. You remain responsible for property taxes, homeowners insurance, and upkeep. Michigan's average property tax runs about 1.38% of value — fall behind on it and the lender can call the loan due, which can put your home at risk. Budget for those bills carefully.
What happens to the house when the borrower passes away?
The loan comes due, and heirs typically have several options: repay the balance and keep the home, sell it and keep any remaining equity, or hand it to the lender. Because HECMs are non-recourse, the family never owes more than the home is worth, even if the balance has grown past the value.