Michigan has a steady 65-and-older population concentrated in metro Detroit, Grand Rapids, the West Michigan lakeshore, and the year-round residential pockets of Traverse City and the Upper Peninsula. The federal HECM program governs reverse mortgages in Michigan; for readers new to the product, how reverse mortgages work covers the structural basics. Michigan does not overlay a dedicated reverse-mortgage statute on top of HUD's rules. State-level variation is mostly licensing oversight and county recording fees.
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What reverse mortgage rules are specific to Michigan?
Michigan does not impose a counseling requirement beyond the federal one. Every HECM borrower must complete an independent counseling session with a HUD-approved agency before the lender pulls credit or orders an appraisal (HUD Handbook 4000.1, Section II.B).
Mortgage loan originators and lenders operating in Michigan are licensed and supervised by the Michigan Department of Insurance and Financial Services (DIFS) under the Mortgage Brokers, Lenders, and Servicers Licensing Act, MCL 445.1651 et seq., and (for first-mortgage lenders that fall under it) the Secondary Mortgage Loan Act. Originator records are verifiable through NMLS Consumer Access.
Recording fees are charged by the county Register of Deeds where the property sits. Michigan moved to a flat-per-document fee in 2016: most counties charge $30 for the first page plus $3 per additional page on a recorded mortgage instrument under MCL 600.2567. Michigan also imposes a state real estate transfer tax on conveyances ($3.75 per $500 of value, MCL 207.526), but that tax applies to transfers of title, not to the recording of a reverse mortgage.
How much can you borrow with a reverse mortgage in Michigan?
The federal HECM ceiling is rarely the binding constraint in Michigan; with the exception of Bloomfield Hills, Grosse Pointe Shores, and a handful of waterfront submarkets, home values sit well below the cap. The 2026 FHA HECM lending limit is $1,249,125 (HUD Mortgagee Letter 2025-22, effective January 1, 2026), applying in every Michigan county. A typical Detroit-metro home appraised near $260,000 with a 70-year-old borrower at the current HECM rate range produces a principal limit in the range of $125,000 to $150,000 before closing costs. A $475,000 home in Ann Arbor, Grosse Pointe, or East Grand Rapids produces a principal limit in the range of $235,000 to $265,000. Run the figures at /calculator.
Michigan's modest home values and senior population feed into its state suitability score, a comparison against all 50 states and DC.
Do you need counseling for a reverse mortgage in Michigan?
HUD maintains the HECM Counselor Roster of every approved agency authorized to provide reverse-mortgage counseling for Michigan borrowers. Most sessions are conducted by phone; in-person availability is concentrated in the Detroit and Grand Rapids metros. Sessions run $125 to $200, with fee waivers available under each agency's published income threshold. The certificate is valid for 180 days. How to find and prepare for a counselor →
What about jumbo in Michigan?
Most Michigan homes are well inside the federal HECM limit, so HECM is the path for the vast majority of borrowers. A small share of properties in Bloomfield Hills, Grosse Pointe Shores, parts of Ann Arbor, and a handful of waterfront submarkets around Traverse City and Harbor Springs appraise above $1.25M. For those, jumbo / proprietary programs (admit at age 55 in most states, $4M loan cap) can leave more equity accessible than a HECM capped at the federal limit. HECM vs. jumbo decision-making →
FAQ
Does Michigan require its own reverse-mortgage counseling on top of the federal HUD requirement?
No. The federal HUD-approved counseling session (HUD Handbook 4000.1, Section II.B) is the only counseling requirement that applies in Michigan. The certificate is valid for 180 days.
Who regulates reverse-mortgage lenders in Michigan?
The Michigan Department of Insurance and Financial Services (DIFS) licenses and supervises mortgage loan originators and lenders under the Mortgage Brokers, Lenders, and Servicers Licensing Act (MCL 445.1651 et seq.). Licenses are verifiable through NMLS Consumer Access.
What does it cost to record a reverse mortgage in a Michigan county?
Most Michigan counties charge a flat $30 for the first page plus $3 per additional page on a recorded mortgage instrument under MCL 600.2567. The state real estate transfer tax does not apply to the recording of a mortgage; it applies to transfers of title.
What is the maximum HECM payout for a Michigan home in 2026?
The federal HECM limit is $1,249,125 in 2026 (HUD Mortgagee Letter 2025-22). The actual principal-limit payout is a fraction of the home value or that limit, whichever is lower, set by the borrower's age and the expected interest rate at closing. Run an estimate at /calculator.
Sources
- HUD Mortgagee Letter 2025-22: 2026 FHA HECM lending limit ($1,249,125), effective January 1, 2026
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Section II.B: HECM program requirements and counseling
- HUD HECM Counselor Roster (national, including Michigan-authorized agencies)
- Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act, MCL 445.1651 et seq.: licensing by the Michigan Department of Insurance and Financial Services (DIFS)
- MCL 600.2567 (county recording fees, flat-per-document) and MCL 207.526 (state real estate transfer tax — applies to title transfers, not mortgage instruments)
- NMLS Consumer Access: originator and company license search