Michigan Reverse Mortgage Loans

Michigan reverse mortgage loans represent 3.3% of the total number of FHA/HECM (Home Equity Conversion Mortgages) that have closed throughout the country since September, 2001. Michigan senior homeowners have taken advantage of the ability to tap into accumulated home equity and never have to make a payment on the reverse mortgage for as long as they live in the home.

For many retirees, Michigan reverse mortgage loans have been a financial life-saver. As housing and industrial sectors of the economy struggled, many folks living on a fixed income found it increasingly more difficult to keep their heads above water. Tapping into home equity through the use of reverse mortgages was one way for "house rich but cash poor" seniors to survive economically.

HECM Loans Insured by the FHA

The HECM reverse mortgage loans are far and away the most popular. They usually offer the most money to the homeowner and also more options of how to receive the money. In most cases, they offer the lowest interest rate as well. Because the HECM loans are insured by the FHA, (Federal Housing Administration) seniors are guaranteed to receive their money, regardless of what may happen to any particular lender that originates their loan.

The amount of money that can be accessed with Michigan reverse mortgage loans is determined by several factors. One is the amount of equity in the home versus the current market value. Another is the age of the youngest borrower on the title to the property and that person's life expectancy. The current interest rate and the FHA loan limit for the county where the property is located are other determining factors. Michigan FHA loan limits range from $200,160 to $262,105.

Reverse Mortgage Loans Counseling

As a requirement for obtaining Michigan reverse mortgages, an applicant must first undergo HUD counseling. The counseling is a safety feature to insure that seniors understand what they are getting into if they decide to tap into their home equity through this avenue. HUD counseling is provided independently from reverse mortgage lenders and is free of charge to the senior borrowers. Counseling can be done in person or by telephone. Once completed the homeowner receives a certificate which must be presented to the lender before an application for a reverse mortgage loan can be processed.

Since equity is the key factor in determining how much money can be obtained from reverse mortgages, you may want to use our free reverse mortgage calculator tool to see if you have enough equity to qualify.

Once you have determined that your equity is sufficient and that you would like more information, you can request your Michigan reverse mortgage loans quote here. There is no obligation and your quote will be customized for you based upon your specific personal and property details. It will compare reverse mortgage loans and illustrate which one will offer you the most money.

• Link to Michigan AARP
• Link To Michigan Office of Services to the Aging

Click Here To See If You Have Enough Equity To Qualify