Reverse Mortgages in Michigan

Who is a local reverse mortgage broker in Michigan? Christopher Gibson (NMLS #1910430) is an independent, Michigan-licensed broker with C2 Financial Corporation (NMLS #135622). He helps Michigan homeowners 62 and older, and 55+ on select proprietary programs, turn home equity into funds for retirement. Because the funds are loan proceeds rather than income, they are generally not subject to federal income tax.* Call or text 720-449-6622.

Updated August 16, 2026

Michigan is the most affordable state I serve, with the typical home worth about $290K, and after decades of ownership that adds up to real equity. A reverse mortgage is one way to use it without selling: erase a monthly payment, open a line of credit that grows, or fund aging in place. Two things make 2026 a good year to look at it in Michigan: the retirement-tax rollback is now fully in effect, and Proposal A means a reverse mortgage will not uncap your taxable value. I will walk you through whether it fits your home.

Aging in place in Michigan, at a glance

Michigan has the oldest housing of any state I lend in, a median year built of 1972, and 2026 is the first year the retirement tax rollback is fully in effect. Those two facts shape almost every conversation I have here. What changes from town to town is how old the houses actually are, how much snow you have to move, and how far apart life expectancy runs: 80.5 years in Ann Arbor against 72.9 in Wayne County.

Michigan against the national picture

Compare retirement and aging in place in these Michigan cities side by side

Tap a column heading to sort. Each city name links through to the full page, where the same figures are set out with the local detail behind them. Keep/month is roughly what it costs to hold a paid-off home each month, the property taxes, insurance, and upkeep you still owe once the mortgage is gone. When you are choosing where to age in place, weigh the things that are hard to change once you are settled: what you will pay in property taxes, the overall cost of living, the climate and how it affects getting around, and how close you are to good healthcare and to family.

Why Michigan homeowners are using reverse mortgages to age in place

Decades of appreciation have made home equity the largest asset most retirees own, while property taxes climb and fixed incomes do not. As a result, a reverse mortgage turns that equity into funds without a required monthly mortgage payment. Before you decide, it is worth weighing the pros and cons of a reverse mortgage.

Michigan spans very different markets: affordable metros like Detroit, Flint and Lansing, where a standard FHA HECM usually fits, alongside higher-value areas like Ann Arbor, the Oakland County suburbs, and the Lake Michigan and Traverse City waterfront communities, where jumbo and proprietary reverse programs matter.

To begin, here are a few numbers worth knowing:

Home values: Zillow. HECM limit: HUD/FHA. Figures change, ask me for today’s numbers on your home.

What is your Michigan home worth today?

To start, enter your address for an instant home-value estimate you can track over time, at no cost and no obligation.

Estimate your equity with the Michigan reverse mortgage calculator

How much can you borrow with a reverse mortgage in Michigan? It comes down to three things: the age of the youngest borrower, current interest rates, and your home’s value (up to the 2026 FHA limit of $1,249,125 for a HECM). Older borrowers and lower rates mean a larger amount, often somewhere between 40% and 60% of the home’s value. The calculator below gives you a personalized estimate in about a minute.

How Michigan law treats a reverse mortgage

The first question every Michigan homeowner asks me is whether a reverse mortgage will uncap their taxable value. It will not, and the reason is written into the statute rather than left to interpretation.

Proposal A, uncapping, and why a reverse mortgage does not trigger it

A reverse mortgage does not uncap your taxable value under Proposal A, because you keep ownership and there is no transfer. Since Proposal A, your taxable value rises each year by the lesser of 5% or inflation, no matter what the market does. For someone who has owned the same house since the 1990s, the gap between taxable value and what the house is actually worth can be enormous. That gap disappears the moment there is a transfer of ownership, and the taxable value uncaps to state equalized value. It is the single most expensive event in Michigan property tax.

A mortgage is not a transfer of ownership. MCL 211.27a(7)(j) says a transfer to establish, assign or relinquish a security interest is excluded, and the State Tax Commission guidelines list the beginning of a mortgage, the end of a mortgage and the assignment of a mortgage as expressly not transfers. A reverse mortgage is a deed of trust. Title stays in your name, nothing transfers, and your cap keeps running from the year you bought.

What does not change is the obligation. Property taxes, insurance and upkeep stay yours, and failing at those is still the main way a reverse mortgage goes wrong.

The Principal Residence Exemption survives too

Your Principal Residence Exemption, up to 18 mills of school tax, survives a reverse mortgage. Michigan’s Principal Residence Exemption takes up to 18 mills of local school operating tax off your bill. The test is ownership and occupancy: the statute asks whether this is your “true, fixed and permanent home”. It is not income-based and there is no age requirement.

Because a reverse mortgage leaves title with you and you carry on living there, both halves of that test are unbroken. The PRE is unaffected. Note it is a different thing from the Homestead Property Tax Credit below, which people mix up constantly: the PRE comes off your property tax bill, the credit comes off your income tax return.

The Homestead Property Tax Credit, and why loan proceeds do not count against it

Michigan’s Homestead Property Tax Credit is not reduced by reverse mortgage proceeds, because they are not income. This is an income tax credit for households whose property taxes are large relative to their income. For the 2025 tax year the tests are total household resources of $71,500 or less and a taxable value of $165,400 or less. The average credit claimed in the 2025 filing season was $820. File with your MI-1040 by April 15.

Here is the part that matters if you are considering a reverse mortgage: advances are loan proceeds, not income. They are not federal income, and Michigan starts from federal figures, so drawing on the loan does not push you over the household resources limit. That is the general rule rather than tax advice, and if you receive a needs-based benefit the analysis is different.

How do Michigan property taxes vary, and what do seniors keep? Michigan taxes a home’s taxable value, whose yearly growth is capped under Proposal A, so effective rates below range from about 0.8% up north to 1.8% in Ingham County. The Principal Residence Exemption removes 18 mills of school operating tax, and the income-based Homestead Property Tax Credit refunds part of the bill. A reverse mortgage disturbs neither. Below is every major county I serve, grouped by region, with its average effective property-tax rate.

Source: county average effective property-tax rates, county equalization data. Principal Residence Exemption (18 mills) and the Homestead Property Tax Credit under Michigan law; a home’s taxable value is capped annually under Proposal A. Confirm your parcel with the county or local assessor.

The one state on this site where a senior deferral does not kill the loan

Michigan is the one state I serve where the senior property-tax deferment does not kill a reverse mortgage. Michigan offers a summer property tax deferment to homeowners 62 and older with gross household income of $40,000 or less, and also to blind, disabled and eligible veteran homeowners. You file Form 471 with your city or township treasurer by September 15, and the deferred summer taxes then become payable by February 14 without penalty or interest.

In Colorado the senior deferral is closed to reverse-mortgaged homes outright. In Texas the tax deferral outranks the loan and ends it. Michigan is different, and better. The summer deferment postpones payment inside the same tax year rather than recording a lien against the property, so it does not create the conflict that 24 CFR §206.27(b)(3) is concerned with.

One caution all the same. The taxes still have to be paid by February 14, and a reverse mortgage servicer monitors property charges. If you are going to use the deferment, tell the servicer so an unpaid summer bill is not read as a default in the making.

2026 is the first year the retirement tax rollback is fully in effect

From tax year 2026, Michigan retirees can deduct 100% of the maximum retirement income, the rollback is fully phased in. Public Act 4 of 2023 phased the retirement tax out over four years: 25% in 2023, 50% in 2024, 75% in 2025, and from tax year 2026 all retirees can deduct 100% of the maximum, regardless of birth year. The old three-tier system based on when you were born is finished. Michigan also does not tax Social Security benefits, and the state income tax is a flat 4.25%.

There is no Michigan estate tax and no inheritance tax. Combined with the rollback, 2026 is a materially better year to be retired in Michigan than 2022 was, and most of the retirement advice still circulating online has not caught up.

Counseling, and the regulator

Federal rules require a HUD-approved counseling session before you apply, and Michigan adds its own regulator. Federal rules govern: 24 CFR §206.41 requires a session with a HUD-approved counselor before the application is taken, and there is no waiver. It is usually low-cost or free. More on what actually happens in it on my reverse mortgage counseling page. Mortgage loan originators in Michigan are licensed by the Department of Insurance and Financial Services.

The oldest housing of any state I lend in

Michigan has the oldest housing stock of any state I serve, a median build year of 1972, which weighs on insurance and upkeep. Michigan’s statewide median year built is 1972. For comparison: Washington 1985, Colorado 1988, Florida 1988, Texas 1992. Twenty-nine of the 51 Michigan markets on this site have housing older than 1970, and Grosse Pointe and Jackson both sit at 1938.

That is not a throwaway statistic on a reverse mortgage page. On housing this old an FHA appraisal routinely flags roof, electrical, plumbing and pre-1978 paint, which often means a repair set-aside holding back part of your principal to fund required work. It is the normal course here rather than a mark against your house. Tell me the age of the roof and the furnace in the first conversation and I can usually tell you what is coming.

Michigan Principal Residence Exemption

Sources: MCL 211.27a, particularly subsection (7)(j), and the Michigan State Tax Commission Transfer of Ownership Guidelines; MCL 211.7cc and the Michigan Department of Treasury Principal Residence Exemption guidelines; MCL 211.51 and Treasury Form 471 (deferment of summer taxes); Michigan Department of Treasury on the Homestead Property Tax Credit, tax year 2025 thresholds; Public Act 4 of 2023 and the Michigan Office of Retirement Services phase-in schedule; 24 CFR §§206.27(b)(3), 206.41 and 206.205; HUD Mortgagee Letter 2025-22 (2026 HECM maximum claim amount of $1,249,125); U.S. Census ACS 2020-2024 5-Year. Thresholds and millage rates are set annually and change. Figures are educational, not legal or tax advice. This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

The HUD counseling requirement, explained

In addition, federal HUD rules require independent counseling before you close, on every HECM, in every state. First, you meet with a HUD-approved counselor who confirms you understand the loan. Then, find approved counselors through HUD’s HECM program; the Michigan Department of Insurance and Financial Services also offers consumer guidance.

HUD-approved counseling agencies in Michigan

Counseling by phone, nationwide: available to Michigan homeowners (availability can vary by agency, so confirm when you call):

For the full, current roster of HUD-approved HECM counselors, call HUD at 800-569-4287 or search the HUD counselor directory.

Learn how reverse mortgages work

New to reverse mortgages? Start with my complete reverse mortgage guide for the full national picture, then dig into the specifics below.

Types of reverse mortgages

In short, there are two broad paths. First, a government-insured FHA HECM is the flexible standard. A proprietary or jumbo reverse mortgage, on the other hand, is built for higher-value homes, can unlock more equity, and in some cases starts at 55.

For a plain-English rundown of each type, see the types of reverse mortgages guide.

HECM vs. jumbo vs. HELOC vs. HEI

A HELOC and a home equity investment (HEI) are the two common alternatives that are not reverse mortgages: a HELOC needs monthly payments and full income qualifying, while an HEI trades a share of your home’s future value for cash now. For a full side-by-side of the HECM, proprietary jumbo, HELOC, and home equity investment (HEI) options, see the comparison on my complete reverse mortgage guide. That same guide breaks down what a reverse mortgage costs and what happens to your home and your heirs.

Reverse mortgage requirements in Michigan

Do you qualify for a reverse mortgage in Michigan? The core requirements are the same across Michigan: you are age 62 or older for the government-insured HECM, or age 55 and up on some proprietary programs, the home is your primary residence, and you keep up with property taxes, homeowners insurance, and upkeep. There is no income or credit-score cutoff the way there is on a regular mortgage, though the lender does confirm you can cover those ongoing costs.

For the full checklist, including eligible property types and the financial assessment, see the reverse mortgage requirements guide. Much of Michigan is older housing stock, so the appraisal has to show the home meets HUD’s minimum property standards, which I flag early so there are no surprises.

How the process works, step by step

1. Free consultation. First, we talk through your goals and whether a reverse mortgage even makes sense. If it does not, I will tell you.
2. HUD counseling. Next, you meet with an independent, HUD-approved counselor, required by HUD on every HECM, who confirms you understand the loan.
3. Application & shopping. Then I compare programs across my wholesale lender network to find competitive pricing and the most available funds.
4. Appraisal & underwriting. After that, a licensed appraiser values your home, and the lender verifies the details.
5. Closing & funding. Finally, you sign, get a three-day right to cancel, and then your funds are available as a lump sum, line of credit, monthly payments, or a mix.

Why work with a mortgage broker, not a bank

As a broker with C2 Financial, I shop your loan across more than 30 wholesale reverse-mortgage lenders. As a result, you get competitive pricing and access to proprietary and jumbo programs a single bank cannot offer. C2 Financial Corporation (NMLS #135622) is a national mortgage brokerage.

Reverse mortgages and aging in place in Michigan, city by city

These are more than a list of links. Each city page is its own local guide to aging in place in that community, and Michigan rewards longtime owners in particular: Proposal A means the gap between your taxable value and your home’s real worth can be large, the housing stock is the oldest of any state I serve, and prices stay within reach from Metro Detroit to the west side. Each page lays out the local values, the county tax and exemption detail, and the resources that matter when you plan to age in place. If you are weighing whether to stay put in Michigan, start with your city.

I have grouped the cities by region, the way Michiganders actually think about the state: Metro Detroit, Southeast Michigan, West Michigan, Mid-Michigan and the Capital area, Northern Michigan, and the Upper Peninsula. Find your area, then open your city.

Metro Detroit

• Reverse Mortgage in Alpena, MI
• Reverse Mortgage in Ann Arbor, MI
• Reverse Mortgage in Battle Creek, MI
• Reverse Mortgage in Bay City, MI
• Reverse Mortgage in Benzie County, MI
• Reverse Mortgage in Birmingham, MI
• Reverse Mortgage in Bloomfield Hills, MI
• Reverse Mortgage in Boyne City, MI
• Reverse Mortgage in Brighton, MI
• Reverse Mortgage in Cadillac, MI
• Reverse Mortgage in Canton, MI
• Reverse Mortgage in Charlevoix, MI
• Reverse Mortgage in Cheboygan, MI
• Reverse Mortgage in Clarkston, MI
• Reverse Mortgage in Dearborn, MI
• Reverse Mortgage in Farmington Hills, MI
• Reverse Mortgage in Frankenmuth, MI
• Reverse Mortgage in Gaylord, MI
• Reverse Mortgage in Grand Haven, MI
• Reverse Mortgage in Grand Rapids, MI
• Reverse Mortgage in Grosse Pointe, MI
• Reverse Mortgage in Harbor Springs, MI
• Reverse Mortgage in Holland, MI
• Reverse Mortgage in Howell, MI
• Reverse Mortgage in Jackson, MI
• Reverse Mortgage in Kalamazoo, MI
• Reverse Mortgage in Lansing, MI
• Reverse Mortgage in Leelanau County, MI
• Reverse Mortgage in Livonia, MI
• Reverse Mortgage in Ludington, MI
• Reverse Mortgage in Mackinaw City, MI
• Reverse Mortgage in Macomb Township, MI
• Reverse Mortgage in Manistee, MI
• Reverse Mortgage in Marquette, MI
• Reverse Mortgage in Midland, MI
• Reverse Mortgage in Milford, MI
• Reverse Mortgage in Muskegon, MI
• Reverse Mortgage in Northville, MI
• Reverse Mortgage in Novi, MI
• Reverse Mortgage in Petoskey, MI
• Reverse Mortgage in Plymouth, MI
• Reverse Mortgage in Port Huron, MI
• Reverse Mortgage in Rochester Hills, MI
• Reverse Mortgage in Royal Oak, MI
• Reverse Mortgage in Saline, MI
• Reverse Mortgage in Saugatuck, MI
• Reverse Mortgage in Shelby Township, MI
• Reverse Mortgage in South Haven, MI
• Reverse Mortgage in St. Joseph, MI
• Reverse Mortgage in Sterling Heights, MI
• Reverse Mortgage in Traverse City, MI
• Reverse Mortgage in Troy, MI
• Reverse Mortgage in Warren, MI
• Reverse Mortgage in West Bloomfield, MI

Southeast Michigan

• Reverse Mortgage in Ann Arbor, MI
• Reverse Mortgage in Brighton, MI
• Reverse Mortgage in Howell, MI
• Reverse Mortgage in Port Huron, MI
• Reverse Mortgage in Saline, MI

West Michigan

• Reverse Mortgage in Grand Haven, MI
• Reverse Mortgage in Grand Rapids, MI
• Reverse Mortgage in Holland, MI
• Reverse Mortgage in Kalamazoo, MI
• Reverse Mortgage in Muskegon, MI
• Reverse Mortgage in Saugatuck, MI
• Reverse Mortgage in South Haven, MI
• Reverse Mortgage in St. Joseph, MI

Mid-Michigan & Capital Area

• Reverse Mortgage in Battle Creek, MI
• Reverse Mortgage in Bay City, MI
• Reverse Mortgage in Frankenmuth, MI
• Reverse Mortgage in Jackson, MI
• Reverse Mortgage in Lansing, MI
• Reverse Mortgage in Midland, MI

Northern Michigan

• Reverse Mortgage in Alpena, MI
• Reverse Mortgage in Boyne City, MI
• Reverse Mortgage in Cadillac, MI
• Reverse Mortgage in Charlevoix, MI
• Reverse Mortgage in Cheboygan, MI
• Reverse Mortgage in Gaylord, MI
• Reverse Mortgage in Harbor Springs, MI
• Reverse Mortgage in Ludington, MI
• Reverse Mortgage in Mackinaw City, MI
• Reverse Mortgage in Manistee, MI
• Reverse Mortgage in Petoskey, MI
• Reverse Mortgage in Traverse City, MI

Upper Peninsula

• Reverse Mortgage in Marquette, MI

Finally, do not see your city? Reach out, I serve homeowners across all of Michigan.

Reverse mortgage FAQs for Michigan homeowners

Who offers reverse mortgages in Michigan?

Christopher Gibson (NMLS #1910430) is an independent, Michigan-licensed reverse mortgage broker with C2 Financial Corporation (NMLS #135622). He serves homeowners statewide.

How much can I borrow with a reverse mortgage in Michigan?

It depends on the age of the youngest borrower, current interest rates, and your home value. Generally, many owners qualify for more than the national average. In addition, higher-value homes may fit a jumbo program above the FHA limit. See how the principal limit sets your number.

Is HUD counseling required for a Michigan reverse mortgage?

Yes. Specifically, federal HUD rules require a session with an independent, HUD-approved counselor before closing, on every HECM, in every state. Fortunately, it is usually low-cost or free, and HUD publishes the approved counselors serving your county. Here is what to expect from HUD counseling.

What are the age and equity requirements?

A standard FHA HECM starts at age 62. However, some proprietary programs start at 55. In addition, you need significant equity, and the home must be your primary residence. See the full reverse mortgage requirements.

Are there special reverse mortgage rules in Michigan?

Michigan does not have a separate reverse mortgage statute, so most reverse mortgages here follow the federal HECM program rules, but a few state features are worth knowing. Michigan is a non-judicial foreclosure state, which means a lender can generally foreclose by advertisement rather than filing a court case, and Michigan law provides a statutory redemption period (commonly six months for many homes) after a foreclosure sale. Mortgage lenders and loan originators in Michigan are licensed and overseen by the Department of Insurance and Financial Services. As everywhere, HUD-approved counseling is required before you can proceed with a reverse mortgage. The exact rules, timelines, and figures should always be confirmed for your particular situation. See the details in how Michigan law treats a reverse mortgage.

About Christopher Gibson

Christopher Gibson (NMLS #1910430) is an independent mortgage and reverse mortgage broker with C2 Financial Corporation (NMLS #135622), serving homeowners across the states he is licensed in. Serving communities across Michigan. Call or text 720-449-6622. More about Christopher.

Read reviews of Reverse Mortgages & Home Loans with Christopher Gibson at C2 Financial

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*This is general information, not tax advice. Reverse mortgage proceeds are loan advances rather than income and are generally not subject to federal income tax. Consult a CPA or tax advisor about your specific situation. Receiving loan proceeds may also affect eligibility for need-based government benefits such as Medicaid or Supplemental Security Income (SSI).