Loan guide
Reverse mortgages in Michigan
For Michigan homeowners 62 and older, a reverse mortgage converts home equity into income with no monthly payment — but the single biggest risk here is local, and it's property taxes.
- Age
- 62+
- Monthly payment
- None (balance grows instead)
- Main MI risk
- Property-tax / insurance default
- Required
- HUD-approved counseling
How reverse mortgages work
The most common reverse mortgage is a HECM (Home Equity Conversion Mortgage), insured by the FHA for borrowers 62 and up.
Instead of you paying the lender, the lender pays you — as a lump sum, monthly income, or line of credit — and the balance grows over time. Nothing is due until you sell, move out, or pass away, at which point the home is typically sold to repay the loan.
You keep the title and can never owe more than the home is worth.
- Trade-offs: fees are higher than a traditional loan
- The growing balance reduces the equity your heirs inherit
- You remain responsible for property taxes, insurance, and upkeep
What's different in Michigan
That last point is where Michigan reverse-mortgage borrowers get into trouble: falling behind on property taxes or insurance is the main trigger for reverse-mortgage default here.
Federal rules require independent HUD-approved counseling before you can take a HECM, which every Michigan borrower must complete.
Treat it as protection, not a formality — it's the step that surfaces whether a reverse mortgage genuinely fits your situation.
Estimate how much you could draw in the reverse mortgage calculator.
Requirements at a glance
- Youngest borrower age 62 or older
- Home is your primary residence with significant equity
- Completed HUD-approved reverse-mortgage counseling
- Ability to keep paying taxes, insurance, and upkeep
This guide is general information, not a lending decision. Loan limits and program rules change — verify current figures with a licensed Michigan lender and confirm licensing at NMLS Consumer Access. See all Michigan loan types or compare lenders.