A Brief Guide to Lenders in Michigan

Reverse mortgages have caught on across the country with seniors age 62 and over. But how do you find a lender that knows how to attend to your goals and financial situation? Are there lenders that handle different types of reverse mortgages in your state?

FHA Lender Loan Limits in Michigan

The Federal Housing Authority imposes mortgage limits across the country on a county-by-county basis. These limits figure prominently in a reverse mortgage and indicate the upper limit for which a borrower will receive cash-out for a federally insured reverse mortgage. So much emphasis is placed on the FHA limits because the U.S. Department of Housing and urban Development’s Home Equity Conversion Mortgage (HECM) is THE most popular reverse mortgage in the country.

Across Michigan nearly all counties are limited to the FHA national average. The one exception is the Ann Arbor area where the FHA limit is slightly higher and accounts for higher home values. Where homeowners have high-value homes a HECM may not offer the best option. The Fannie Mae Home Keeper or a private jumbo reverse mortgage, one offers higher limits, the latter no limits, for borrowers with high equity.

How to Find a Federally Insured Lender

So your home value falls neatly within the FHA limits and the HECM seems like a promising option. Where do you find a qualified lender for the HECM? Remember, HUD and the FHA are NOT direct lenders, but they do maintain a list of approved lenders. All borrowers interested in a HECM are urged to choose a lender from this list, which is easy to use and searchable by state. Or ask a mortgage counselor for a local list of approved lenders.

State of Michigan Lenders for Single Purpose Reverse Mortgages and Loans

Many cities and towns in Michigan participate in programs that offer seniors and other eligible homeowners, deferred loans for property rehabilitation or improvement. These types of loans are similar to single-purpose reverse mortgages in that the borrower must be the owner, must occupy the residence and is not required to make any repayments until the property is sold or the owner dies. Check with your local municipality for their program details and applications. In some cases you may have to be at least 65 and have a minimal income to qualify.

General Reverse Mortgage Providers for Michigan Senior Homeowners

Between the HUD-approved lenders and others you’ll find hundreds of financial institutions in Michigan that provide reverse mortgages of all kinds. Some lenders are located nationwide and others are hometown favorites. Below are listed only a few representative of the types of lenders available in the state.

Financial Freedom

This is one of the largest volume, nationwide mortgage lenders and brokers. Not only does the company offer direct mortgages, but FF’s proprietary product, Cash Account Advantage, is one of the three most popular reverse mortgages in the country and is originated by hundreds of lenders as a jumbo reverse mortgage option. Financial Freedom also offers senior borrowers the federally insured HECM and the Fannie Mae Home Keeper.

Live Well Financial

Live Well Financial specializes in products aimed at seniors, especially in reverse mortgages. The company reports its most popular product is the federally insured HECM, a beneficial option for many seniors that could use the money from their home’s equity.

Senior’s Equity Income

A regional company with almost 10 years in nothing but the reverse mortgage business. Senior’s Equity boasts very flexible options for homeowners that may not be suited to a standard reverse mortgage.