← Reverse mortgages in Michigan
What does a reverse mortgage cost in Ann Arbor? On a government-insured HECM, for owners age 62 and up, the biggest cost is the upfront FHA mortgage insurance, figured at 2 percent of the home value the loan counts, on top of the origination fee, appraisal, title, and recording. On a typical $541K Ann Arbor home in Washtenaw County, most of that can be financed into the loan, and a proprietary reverse mortgage with no FHA premium is sometimes cheaper, so I price both.
A typical Ann Arbor home is worth around $541K, and for a longtime owner most of that is equity they have never touched. A reverse mortgage only fits some situations, and I will say so when it does not. See how Ann Arbor compares on my Michigan aging-in-place overview.
Updated
On this page
- Local reverse mortgage broker in Ann Arbor
- Aging in place in Ann Arbor
- What is my Ann Arbor home worth?
- Reverse mortgage calculator
- Cost of aging in place
- Is a reverse mortgage right for me?
- Learn how reverse mortgages work
- Reverse mortgage options in Ann Arbor
- How much a reverse mortgage costs in Ann Arbor
- Condos and HOA
- Reverse mortgage FAQs
Reverse Mortgage Specialist in Ann Arbor, MI
Who is a local reverse mortgage broker in Ann Arbor, MI? Christopher Gibson (NMLS #1910430) is an independent broker with C2 Financial Corporation (NMLS #135622). He helps Ann Arbor homeowners age 55 and older (age 62+ for the government-insured HECM) 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.
Aging in place in Ann Arbor, at a glance
The honest pros and cons, every measure I track, sorted by which way it cuts. Full detail below.
| Works in your favor | Neutral or mixed | Plan around it |
|---|---|---|
|
|
|
Figures: U.S. Census ACS 2020-2024 5-Year; County Health Rankings 2025 (life expectancy, county level); NOAA 1991-2020 Climate Normals; FEMA National Risk Index (per hazard, not the composite). This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.
Why a reverse mortgage appeals to Ann Arbor homeowners 55+ attempting to age in place
Ann Arbor is built around the University of Michigan, a college town where values run well above the state norm. A house bought here decades ago is now worth around $541K, and for a longtime owner on a fixed income while property taxes climb, that equity is what a reverse mortgage reaches, most often to erase a monthly payment and stay put.
Ann Arbor’s real estate is defined by a deep, historic housing stock in walkable neighborhoods near the University of Michigan, where longtime owners have watched values climb steadily for decades, leaving many retirees house-rich but cash-constrained on a fixed income, even as taxes and upkeep on an older home keep rising.
Ann Arbor reverse mortgage facts and figures
Ann Arbor values sit in the upper range of the Detroit metro, and it is the paid-off equity in its established neighborhoods that a reverse mortgage puts to work. Here are a few numbers worth knowing:
Home values: Zillow, June 2026. HECM limit: HUD/FHA 2026. Property tax: U.S. Census. Figures change, ask me for today’s numbers on your home.
What is your Ann Arbor home worth today?
Curious what your home could be worth, and how much equity you have to work with? Use my free home-value tool below. Enter your address for an instant Ann Arbor estimate you can track over time, at no cost and no obligation.
Reverse mortgage options in Ann Arbor: HECM vs. jumbo
HECM covers most Ann Arbor homes; a proprietary jumbo is built for higher-value homes above the FHA limit and for many condos. For the full side-by-side of HECM, jumbo, HELOC, and HEI, see the reverse mortgage comparison table, or the types of reverse mortgages for a plain-English rundown.
Buying a home? Consider a HECM for Purchase (H4P)
A HECM for Purchase lets you buy your next home using a reverse mortgage, so you put down a portion and finance the rest with no required monthly principal-and-interest payment. For an Ann Arbor owner trading a two-story colonial for a single-level ranch, it is a clean way to move without taking on a new monthly payment.
How much you can access depends on age, rates, and value. Start your own estimate with the reverse mortgage calculator below.
Reverse Mortgage Calculator
Let’s calculate how much equity you can unlock.
A reverse mortgage is a loan. The balance grows over time and is repaid when the last borrower leaves the home. You keep the title, and you remain responsible for property taxes, homeowners insurance, and upkeep.
Aging in place in Ann Arbor with a reverse mortgage: what it really costs
The Ann Arbor-specific part. Everything here is checkable, and I have said so where it is not. The sources are at the end. So are the limits of what they cover.
A 1971 median build year is the first thing an appraiser sees
Structures here have a median completion year of 1971, right at the Michigan median of 1972. About 63% of the housing here went up before 1980, which is the line that matters for lead paint. On paper a HECM appraisal produces a value. In practice it produces a punch list: roof, furnace, water heater, electrical, lead paint. That list is funded by a repair set-aside, up to 15% of the maximum claim amount, and the work happens after closing rather than before.
The cost of keeping, not the cost of buying
The Census puts the cost of holding a mortgage-free Ann Arbor home at $1,036 a month. The components are taxes, insurance, utilities and fuel. Set beside the $94,402 a typical 65+ household earns here, it eats 13% of the income. On city income tax: Ann Arbor has considered a city income tax repeatedly and has never enacted one. Right now 20% of the over-65 owners here are over the 30% housing-cost line. Whatever else changes, this does not. It is why I ask about income before I ask about the house.
The medical geography of staying here
You have University of Michigan Health, whose University Hospital is a Level I trauma center in the city, part of Michigan Medicine. The distances that count: 0.8 miles to Level I care at University Hospital Michigan Medicine, and 0.8 miles to a Level I. It is the part of the stay-put decision that has nothing to do with money and everything to do with whether the plan survives a bad year.
What happens if the sidewalk does not get cleared
Count on 18 days a year here with an inch or more of snow on the walk. The ordinance puts that on you: 24 hours after any accumulation over one inch, and ice has to be treated within 18 hours of forming. The one-inch trigger is the strictest in the state. The consequence is a first citation is at least $100, a second $250 to $500, and a third $500 to $1,000, plus the city’s removal cost and a $50 administrative fee. You get one warning a season. That is Ann Arbor City Code Chapter 49. It is the least glamorous line in a retirement budget and one of the most load-bearing.
Getting around when you stop driving
The local option is TheRide’s GoldRide, open to riders 65 and older. It is free on fixed-route buses with a GoldRide card. Do the paperwork early. It is the difference between a service you have and a service you have heard of.
Michigan law, and the one deferral that actually works
Michigan rules, briefly. Uncapping: no, by statute. Principal Residence Exemption: unaffected. Summer deferment at 62 under $40,000 of income: available, and it records no lien, which is why it works here and not in Colorado. Full version on the Michigan page.
What the county pays for, and what it does not
Senior services here are funded by a millage, levied by The Washtenaw County Office of Aging Services, up to 0.50 mill over eight years, approved in November 2024. It covers a minimum of $200,000 a year to each qualified senior center, plus door-to-door rides to clinics and pharmacies. Worth a phone call before a loan application. Free help is better than borrowed help.
The quantitative version of the argument
The weather load is 18 days of clearing, roughly 57 inches of snow, plus 127 days below freezing. The cost-of-living index reads 101 against 100 nationally, covering Ann Arbor, MI metro. County life expectancy is 80.5 years against 77.1 nationally. Budget for more years under this roof than the averages would suggest. And the figure that ties it together: a mortgage-free house still costs $1,036 a month, which is 13% of typical income past 65.
Sources: U.S. Census Bureau, American Community Survey 2020-2024 5-Year Estimates; NOAA 1991-2020 Climate Normals; U.S. Bureau of Economic Analysis Regional Price Parities; the MDHHS designated trauma facility list, with road distances from OSRM; the municipal code cited above; county and city millage records; County Health Rankings & Roadmaps 2025, at county level. This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.
How the process works, step by step
Getting a reverse mortgage is more straightforward than most people expect. In short, it is a free consultation, independent HUD counseling (required in Michigan), application and shopping across lenders, an appraisal, and closing, usually about 30 to 45 days. For the full step by step, see how it works.
Why work with a mortgage broker, not a bank
As a broker with C2 Financial, I am not tied to one company’s rate sheet. I shop your loan across more than 30 wholesale reverse-mortgage lenders. First, pricing: even a standard HECM is priced differently from lender to lender, so shopping the same loan can mean a lower rate or more available funds. Second, product access: brokering opens the door to the proprietary and jumbo programs a single bank cannot offer.
I broker through C2 Financial Corporation (NMLS #135622), a national mortgage brokerage.
How much a reverse mortgage costs in Ann Arbor
Reverse mortgages have real costs, and I show them plainly: interest, FHA mortgage insurance (2% upfront plus about 0.5% a year), an origination fee capped at $6,000, and third-party closing costs. Still, most can be rolled into the loan. For the full itemized breakdown, see the reverse mortgage costs.
What happens to your home and your heirs
You keep the title. Because a HECM is non-recourse, you and your heirs never owe more than the home is worth. When the last borrower leaves, heirs can repay or refinance to keep the home, or sell and keep the remaining equity. If the balance ever tops the value, FHA insurance covers the gap, and heirs can settle for 95% of appraised value. The full heirs walkthrough is on my home and heirs section.
What about condos and HOA approval?
Some Ann Arbor owners live in condos or HOA communities. A standard HECM needs the whole project FHA-approved, and many are not, but a proprietary loan can often finance a non-approved condo. Property rules and exceptions are covered on the requirements page, so if a condo is on your mind, we start by checking your building.
The HUD counseling requirement, explained
Federal HUD rules require independent, HUD-approved counseling before you close, on every reverse mortgage nationwide. It is a consumer protection, usually low-cost or free, and HUD publishes the approved counselors serving Washtenaw County, so scheduling never has to stall your file. For what the session actually covers, see the counseling page.
Ann Arbor neighborhoods and nearby areas I serve
I work with homeowners across the city and greater Washtenaw County. That includes Burns Park, Old West Side, Kerrytown, Water Hill, Ann Arbor Hills, Barton Hills, Lower Burns Park, and Geddes Avenue area. Core ZIP codes include 48103, 48104, 48105, 48108, 48109.
In addition, I also help owners in nearby communities such as Ypsilanti, Saline, Dexter, Chelsea, and Pittsfield Township, and across Washtenaw County. See every area I cover on my reverse mortgages across Michigan page. Do not see your area? Reach out and ask.
If aging in place is your goal, local resources like AgeWays Nonprofit Senior Services (Area Agency on Aging 1-B), and Turner Senior Wellness Program, Michigan Medicine can help you plan, and my free Aging-in-Place Home Scorecard lets you score any Ann Arbor home in about 15 minutes to see how ready it is to grow old in.
Reverse mortgage FAQs for Ann Arbor homeowners
Can I get a reverse mortgage on an Ann Arbor condo?
Often, yes. A standard FHA HECM needs the whole condo project to be FHA-approved, and many buildings are not. When that is the case, a proprietary reverse mortgage can usually finance a non-approved or non-warrantable condo. I check your specific building first.
Do I still own my home?
Yes. The title stays in your name. You keep ownership and can sell or move whenever you want. The loan is repaid when the last borrower permanently leaves, and you or your heirs keep any remaining equity.
How much can I borrow in Ann Arbor?
It depends on the youngest borrower’s age, current rates, and your home value. Most Ann Arbor homes fall within the standard FHA HECM limit, while higher-value homes may also fit a jumbo program that exceeds it.
Is HUD counseling required in Ann Arbor?
Yes. You must complete a session with a HUD-approved counselor before closing. It is usually low-cost or free. HUD publishes the approved counselors serving Washtenaw County, so scheduling never has to slow you down.
What are the age and equity requirements?
A standard FHA HECM starts at age 62. Some proprietary programs start at 55. You also need significant equity, and the home must be your primary residence.
Do I still pay property tax with a reverse mortgage in Ann Arbor?
Yes. With a reverse mortgage you keep title and remain responsible for property taxes, homeowners insurance, and upkeep. Depending on your age and income you may qualify for senior property-tax relief in Michigan (the programs vary by state and by county), and you can use reverse-mortgage funds to help cover those ongoing costs.
Can I use a reverse mortgage to buy a smaller home in Ann Arbor?
Yes, that’s a HECM for Purchase. It lets buyers 62+ put down a portion of the price and finance the rest with a reverse mortgage, so you can right-size into a single-level or lower-maintenance Ann Arbor home without taking on a monthly mortgage payment.
Have a question about a reverse mortgage in Ann Arbor? Call or text me at 720-449-6622. No pressure, just straight answers.
Quick guide: is a reverse mortgage right for me?
First, answer four short questions, and the guide will point you toward the resource that fits your situation. Of course, it is general guidance for learning, not an approval or a quote, and nothing you tap is stored.
Free guide: Your Home Can Help
My complete guide to reverse mortgages for Michigan homeowners, the retirement squeeze, the myths, your options, real client stories, and what it really costs. No email required.
Learn how reverse mortgages work
Want the full details before we talk? These guides cover everything, no local sales pitch, just the facts.
Reverse mortgages in nearby communities
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 Ann Arbor and nearby communities. Call or text 720-449-6622. More about Christopher.
Read reviews of Reverse Mortgages & Home Loans with Christopher Gibson at C2 Financial
Google Business Profile → · Mortgage Matchup →
*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).