In Michigan, you can borrow against your home's value with a reverse mortgage on your main residence, and it's a nonrecourse loan. That means when the debt is paid back, you or your heirs will never owe more than the home's value. The federal Home Equity Conversion Mortgage, or HECM, is the choice of most borrowers, with 410 loans in Michigan from October 2025 through August 2026. For those loans, the median home value came to $274,500 and the median initial principal limit was $120,629. That initial principal limit is what you can borrow at the start, before covering closing costs.
Your 3‑day right to cancel, plus Act 660 of 2002
In Michigan, the Consumer Mortgage Protection Act leaves a reverse mortgage out of what it calls a mortgage loan. So your loan isn't subject to the standard mortgage rules found in that law. What protects you instead are the key rules the Michigan Attorney General points out. For most reverse mortgages, you and any co-borrower must all be at least 62 years old.
A federal rule that applies nationwide also says you have to finish a counseling session before you can get a HECM. In Michigan, there are 4 federally approved counseling agencies, and you can speak with 1 of them. The loan can be canceled with no penalty during a 3-day window after closing. It’s your right of rescission, so you can still back out during those three days if you decide not to go ahead.
Can your loan be protected by the $50,000 Homestead Property Tax Credit?
Paying the property bills that keep your loan in good standing can be easier with state tax relief. The federal Consumer Financial Protection Bureau requires you to live in the home as your main residence and keep the property in good shape. You also have to stay current on your property taxes and homeowners insurance. Because missing property tax payments can push your HECM into default, tax relief programs are a big deal. You're allowed to claim the state credit and cut your bill, unless you go past 2 strict limits. You won't be eligible when your total household resources top $50,000 or your home's taxable value goes over $135,000.
Annual local exemptions and Detroit's HOPE program
Low income homeowners in Michigan who are eligible may request a property tax exemption from the Board of Review in their area. This relief has to be renewed each year through your local office. Detroit residents who satisfy the income rules are eligible to apply for the Homeowners Property Exemption. This exemption is exclusive to Detroit and cuts your property taxes by 50% or 100%.
Supervision by Michigan's Department of Insurance and Financial Services
In Michigan, 59 reverse mortgage lenders are active, and they closed 56 refinances plus 3 home purchase loans recently. The state Office of Consumer Finance lets you check a company's license before you commit. Across Michigan, that division grants licenses and registrations to over 13,000 mortgage and consumer finance firms. To supervise these companies, state staff review their books and records. They also look into consumer complaints and enforce rules when a lender doesn't comply.
