To qualify for a reverse mortgage in Michigan, the youngest borrower must be at least 62 years old, the property must be your primary residence, and you must have substantial equity, typically 50% or more. You must complete HUD-approved counseling and demonstrate the ability to pay property taxes, homeowners insurance, and maintenance costs. Most reverse mortgages in Michigan do not have credit score or income requirements for the loan itself.

The amount you can borrow with a reverse mortgage in Michigan depends on your age, your home's value, current interest rates, and the FHA lending limit. Generally, older borrowers with higher-value homes receive larger proceeds. The maximum claim amount is capped at the FHA limit, so homes valued above this limit do not generate additional proceeds unless you use a proprietary reverse mortgage product.

No, you retain full ownership and title of your home with a reverse mortgage in Michigan. You continue to live in and maintain the property as your primary residence. The loan only becomes due when you sell the home, move out permanently, or pass away. Your heirs inherit the home and can repay the loan to keep the property or sell it and retain any equity above the loan balance.

Reverse mortgage costs in Michigan include an upfront mortgage insurance premium of 2% of the home's value, an origination fee capped by HUD, closing costs, and ongoing annual mortgage insurance of 0.5%. These costs can be financed into the loan so you pay nothing out of pocket. While the upfront costs are higher than a traditional mortgage, there are no monthly mortgage payments required during the life of the loan.

Yes, your heirs in Michigan inherit the home and have several options when the reverse mortgage becomes due. They can repay the loan balance and keep the property, sell the home and retain any equity exceeding the loan balance, or simply walk away with no personal liability even if the home is worth less than the loan balance. The FHA insurance guarantees that heirs never owe more than the home's value.

If you move to assisted living or another care facility in Michigan, the reverse mortgage allows a 12-month grace period before the loan becomes due. If you return to the home within that period, the loan continues as normal. If you do not return, the home must be sold or the loan repaid. For married couples, the non-borrowing spouse may continue living in the home under certain protections established by HUD.