Using Your Home Equity in Michigan
For many Michigan homeowners, their home represents one of their largest sources of accumulated wealth. According to Zillow, Michigan’s typical home value was $263,760 as of September 2026, and home prices statewide have increased about 38.80% over the past five years, according to the FHFA House Price Index (FHFA HPI).
Homeowners across Michigan have seen different levels of appreciation depending on where they live, ranging from 36.13% in Monroe to 59.56% in Muskegon-Norton Shores over the past five years, per FHFA HPI. These differences can affect how much equity homeowners have accumulated and how much they can borrow through a home equity loan or home equity line of credit. This guide covers how home equity borrowing works specifically in Michigan; for the national overview, see our home equity loans and lines of credit hub.
Sources: Zillow home value data through September 2026 and Federal Housing Finance Agency House Price Index data for 2026Q2, released in August 2026.
Griffin Funding’s Home Equity Options in Michigan
Learn more about each program on our HELOC, fixed-rate HELOC, and home equity loan pages.
Griffin Funding offers four ways to borrow against your home equity in Michigan. Two are fully digital and fund in days. Two are traditional programs that go up to $1 million and let you qualify with bank statements or rental income instead of tax returns. On Michigan’s typical home, worth about $263,760, borrowing up to 90% of the home’s value means total debt on the property can reach roughly $237,000; a homeowner who owes half the home’s value could access around $106,000. Every program starts with a soft credit pull, so you can see your offers without touching your credit score, and none of them carries a prepayment penalty when you qualify with your own income.
Digital Variable-Rate HELOCVariable rate · $10,000 to $750,000 · funds in days
Digital Fixed-Rate HELOCFixed rate · $25,000 to $750,000 · 5-minute pre-approval
Traditional HELOCVariable rate · $100,000 to $1,000,000 · alt doc friendly
Fixed-Rate HELOANFixed rate · $100,000 to $1,000,000 · one lump sum
Every program: soft credit pull to see your pre-approval and offers; a hard pull happens only after you accept. No prepayment penalty when you qualify with your own income; the DSCR HELOC has none, and the DSCR HELOAN offers options with or without one (see the investor section below).
“Max borrowing” is combined loan-to-value (CLTV): your existing mortgage plus the new loan, as a share of your home’s value. Maximums step down at lower credit scores. Variable rates are indexed to the WSJ Prime Rate plus a margin. Loans above the no-appraisal thresholds require a full appraisal; digital fixed-rate HELOCs from $400,000 to $750,000 also require a 760+ credit score. On the digital variable-rate HELOC, amounts above $500,000 are for primary homes only; on the HELOAN, amounts above $750,000 are for primary homes only. Figures reflect Griffin Funding’s standard home equity programs as of October 2026 and are subject to change. Actual amounts, rates, and terms depend on your credit profile, property type, income documentation, and available equity. This is not a loan offer or a guarantee of approval.
Home Equity Options for Michigan Real Estate Investors
Investors who document income can borrow up to 90% of a Michigan investment property’s value through the digital variable-rate HELOC with a 720+ credit score. If you’d rather not share personal income documents at all, Griffin Funding offers DSCR versions of both products that qualify on the property’s rent instead:
DSCR HELOC: A line of credit on an investment property that qualifies when the rent covers at least 110% of the payment. Lines from $100,000 to $500,000, with credit scores starting at 720, at up to 70% of the property’s value, with no personal income documents, no cash reserves required, and no prepayment penalty.
DSCR HELOAN: A fixed-rate lump sum from $100,000 to $500,000 at up to 80% of the property’s value with a 720+ credit score (credit scores start at 680), qualifying when the rent covers the full payment. LLCs and corporations can borrow with a personal guaranty, so you don’t have to move the property out of your entity to close. The DSCR HELOAN comes with or without a prepayment penalty: penalty options step down over one to five years and typically carry better pricing, and no-penalty options are available if you plan to pay off or refinance early.
A cash-out refinance is another option if you’re considering changing your existing mortgage while accessing some of your home equity. Unlike a HELOC or home equity loan, a cash-out refinance replaces your existing mortgage with a new loan and provides the difference in cash.
Griffin Funding offers cash-out refinancing for eligible homeowners. And if you’re buying rather than tapping, a piggyback loan uses a HELOC or HELOAN at purchase to avoid PMI or jumbo pricing.
How Much Can You Borrow With HELOCs and HELOANs in Michigan?
Equity is the gap between your home’s current market value and what you still owe on the mortgage, and it’s what a HELOC or home equity loan borrows against.
How much of it you can tap comes down to two things: the program you choose and your credit score. At the top end, Griffin Funding lets you borrow until your total debt on the property reaches 90% of its value. With a 720+ credit score, the digital variable-rate HELOC offers that 90% ceiling on primary homes, second homes, and investment properties alike (investment properties require full income documentation). Other programs cap out at 70% to 90%, so the same house can support very different loan amounts depending on which product fits you.
Here’s what that looks like in practice. Say your Michigan home is worth $250,000 and you owe $125,000. At 90%, your total debt can reach $225,000, which leaves up to $100,000 you could borrow. At 70%, the ceiling is $175,000, so the available amount drops to $50,000. Same house, same mortgage, twice the cash.
If you own your Michigan home free and clear, the math gets simpler: there’s no existing mortgage to subtract, so the full percentage is yours to borrow. A first-lien HELOC takes the first position on your title and works as the only loan on the property.
How much equity can you actually access in Michigan’s housing markets? The table below shows the typical home value and the estimated cash available at 70%, 80%, and 90% combined loan-to-value (CLTV). Figures assume an existing mortgage balance of 50% of current home value, so your actual accessible equity may differ.
You may qualify for more than shown. These figures assume a mortgage balance equal to 50% of your home’s value. If you owe less, your accessible equity is higher. A Detroit homeowner with a $264,316 home who owes $80,000 could access about $158,000 at 90% CLTV, well above any program minimum.
2026 HELOC and HELOAN Rates in Michigan
As a direct-to-consumer lender, Griffin Funding sets home equity pricing based on your credit score, available equity, and selected program. Griffin Funding’s variable-rate HELOCs track the WSJ Prime Rate plus a margin, while fixed-rate HELOCs and HELOANs lock the rate at closing.
What Do You Need to Qualify For Home Equity Programs in Michigan?
Qualifying comes down to five things: how much equity you’re keeping, how you document income, your credit score, your payment history, and your debt load.
- Equity value: You can borrow until your total debt on the property reaches up to 90% of its value, depending on the program and your credit score. The 90% maximum is available on primary homes, second homes, and investment properties with a 720+ score through the digital variable-rate HELOC (investment properties require full income documentation); other programs range from 70% to 90%.
- Stable income: Prove it the way that fits how you earn. W-2 employees and retirees can verify income automatically online in minutes. Self-employed borrowers can use 12 to 24 months (HELOC) or 12 months (HELOAN) of bank statements instead of tax returns. Real estate investors can skip personal income documents entirely and qualify on the property’s rental income (DSCR).
- Minimum credit: Griffin Funding offers certain home equity options for credit scores starting at 600, although many programs require higher scores. Traditional HELOCs and home equity loans require a minimum credit score of 660.
- Payment history: Lenders review recent mortgage and housing-payment history. The required lookback period and treatment of late payments vary by program.
- Debt-to-income ratio: Certain Griffin Funding HELOC programs may permit a debt-to-income ratio as high as 50%, depending on the program and the strength of the overall application.
Michigan-Specific Home Equity Considerations
Michigan charges a flat $30 mortgage recording fee and no state or county real estate transfer tax on mortgages. A HELOC or HELOAN does not uncap your property taxes because it creates a lien rather than transferring ownership. If you’re married and borrowing against your primary residence, your spouse generally must sign the mortgage under Michigan’s homestead rules. After a default, Michigan permits foreclosure by advertisement when the statutory requirements are met, followed by the applicable redemption period. Here’s what each rule means for your HELOC or HELOAN.
Michigan Home Equity Loans and Lines of Credit Closing Costs
Michigan home equity closings take place digitally or through traditional in-person signing. The lender, title company, property, and selected program determine the closing method. The Michigan Secretary of State confirms that the state permits electronic and remote notarizations, and MCL 55.286b establishes requirements for approved remote electronic notarization platforms and notarial records.
Your mortgage is then recorded with the register of deeds in the county where the property is located. Michigan’s Electronic Recording Commission supports e-recording, with each county setting its availability and submission procedures.
After signing, federal rescission rules give borrowers three business days to cancel before funds are disbursed. This waiting period applies to primary residences. Second homes and investment properties can fund without the three-business-day waiting period.
Michigan charges $30 to enter and record a document, regardless of the number of pages, under MCL 600.2567. A mortgage or other written instrument given as security is exempt from both state and county real estate transfer taxes under MCL 207.526(d) and MCL 207.505(d). Your loan disclosures itemize everything else: title, valuation, and lender fees.
Read our guide for a full breakdown of HELOC closing costs.
Michigan Foreclosure Process
Michigan commonly permits foreclosure by advertisement, a nonjudicial process, when the statutory conditions in MCL 600.3204 are met. For covered closed-end mortgages, federal rules generally prevent the first foreclosure notice or filing until the loan is more than 120 days delinquent. HELOCs are excluded from that rule, so contact your servicer early about the applicable timeline and loss-mitigation options. The foreclosure notice generally must be published once a week for four successive weeks and posted conspicuously on the property within 15 days after the first publication under MCL 600.3208. After the sheriff’s sale, a six-month redemption period is most common, although different periods can apply based on the debt balance, property type, or abandonment status; the sheriff’s deed states the applicable deadline. The Michigan State Housing Development Authority summarizes these foreclosure stages.
Michigan Property Tax Reassessment
A Michigan HELOC or HELOAN does not uncap the home’s taxable value because it creates a lien rather than transferring ownership. Michigan uncaps taxable value in the calendar year after a qualifying transfer of ownership, as explained by the Department of Treasury’s ownership and uncapping guidance. Eligible owner-occupants can claim the Principal Residence Exemption, which exempts a principal residence from up to 18 mills of local school operating tax.
Michigan’s creditor-protection homestead exemption is separate from the Principal Residence Exemption used for property taxes. MCL 600.6023 protects a homestead from a judgment-creditor collection but does not protect against a lawfully obtained mortgage on the homestead. A HELOC or HELOAN lender can enforce the voluntary lien after a default.
Michigan Rules on Spousal Consent for Home Equity Financing Programs
Michigan is not a community-property state, so title determines who owns the interest being pledged. Every owner shown on title must sign the mortgage or other security instrument that creates the HELOC or HELOAN lien, even if only one owner signs the note and assumes personal liability for the debt.
Michigan’s homestead rules can also make a nonowner spouse’s signature relevant on a primary residence. MCL 600.6023 states that a mortgage is not valid for purposes of the homestead provision without the married judgment debtor’s spouse signing, unless it secures purchase money or has remained recorded for 25 years without an invalidity claim. If you’re married and borrowing against your primary residence, your spouse generally must sign the mortgage, even if they aren’t on the title or the loan. Signing doesn’t make them personally liable for the debt.
Apply For a Home Equity Loan or HELOC in Michigan
Griffin Funding lends throughout Michigan, from Detroit and Grand Rapids to Warren, Sterling Heights, Ann Arbor, and Lansing. Whether you want to use your equity to renovate, invest, consolidate debt, or build a financial cushion, home equity financing lets you do so without ever touching your first mortgage rate, and you can start with a soft credit pull to find out where you stand in minutes.
Reach out to a Michigan loan officer to compare programs, or get started online today.
Reach out to a Michigan loan officer to compare programs, or get started online today.
- Kent Garner, Griffin Funding Michigan Loan Officer | NMLS# 1262819
- Valerie Zatarain, Griffin Funding Michigan Loan Officer | NMLS# 1507400
- Joe Yaeger, Griffin Funding Michigan Loan Officer | NMLS# 209681
- Guy Troxler, Griffin Funding Michigan Loan Officer | NMLS# 1642169
Griffin Funding Home Equity Financing: Where We Lend
Open the list below for local home equity guidelines, draw and repayment terms, and rate guidance from a loan officer licensed in your market.
Not sure if we lend in your state? Request a quick quote and a licensed loan officer will confirm home equity availability in your area.
Frequently Asked Questions
How much does a HELOC or HELOAN cost to close in Michigan, and can I close it early without a penalty? 
With Griffin Funding, there’s no prepayment penalty on home equity programs where you qualify with your own income. HELOCs and HELOANs have closing costs that cover appraisal, title search, recording, and other lender or third-party charges. HELOC closing costs range from $500 to $5,000, or 2%–5% of your line of credit, based on the lender, loan size, and location. HELOAN closing costs fall in a similar range because they involve many of the same underwriting and closing tasks.
Michigan charges a flat $30 to record your mortgage, regardless of page count. Mortgages and other instruments given as security are exempt from Michigan’s state and county real estate transfer taxes.
“No closing cost” HELOCs eliminate upfront fees by shifting costs elsewhere, such as through a higher interest rate or an early-closure penalty. Review your official loan disclosures before signing. Get the full picture in our guide to HELOC closing costs.
Can I get a HELOC or HELOAN on an investment property or second home in Michigan?
Yes. Griffin Funding offers HELOCs and home equity loans for primary residences, second homes, and investment properties in Michigan. Under Griffin Funding’s digital variable-rate HELOC guidelines, borrowers with a credit score of 720 or higher can access up to 90% combined loan-to-value (CLTV) on primary residences, second homes, and investment properties. Investment properties require full income documentation. Borrowing limits depend on the loan program, credit score, loan amount, income documentation, occupancy, and overall financial profile.
Investors who prefer not to document personal employment income can qualify using the property’s rental income through a DSCR home equity loan. Griffin Funding’s DSCR HELOAN program offers loan amounts from $100,000 to $500,000, requires a minimum credit score of 680 and a DSCR of at least 1.0, and allows up to 80% CLTV for borrowers with credit scores of 720 or higher.
What credit score do I need for a HELOC in Michigan?
600. The minimum credit score for a Griffin Funding HELOC in Michigan depends on the loan program, property type, requested credit-line amount, and combined loan-to-value (CLTV) ratio. Griffin Funding offers home equity options for credit scores starting at 600. Our digital HELOCs require a minimum score of 600, and traditional HELOCs and home equity loans start at 660.
Higher credit scores provide access to larger credit lines, higher CLTV limits, and better interest rates. Borrowers with scores of 720 or higher can access up to 90% CLTV through Griffin Funding’s digital variable-rate HELOC on primary residences, second homes, and investment properties, subject to program requirements. Griffin Funding’s digital prequalification process uses a soft credit inquiry that doesn’t affect your credit score. A hard credit inquiry is required during the formal application or underwriting process.
Can I cancel my HELOC or home equity loan after closing in Michigan?
Yes, if the loan is secured by your primary residence. Federal law generally gives you three business days to cancel without penalty, starting once the lender gives you the official documents disclosing the loan’s terms. This window doesn’t apply to vacation or second homes, and it can extend if the lender fails to provide those disclosures. If you have a genuine financial emergency and need the money sooner, you can waive this right and skip the three-day wait by giving the lender a written, dated statement describing the emergency, signed by you and anyone else who owns the home.
Can I qualify for home equity financing if I’m self-employed?
Yes. Griffin Funding accepts 12 to 24 months (HELOC) or 12 months (HELOAN) of bank statements in place of W-2s, tax returns, or pay stubs on both HELOCs and HELOANs, so self-employed borrowers, freelancers, and small business owners can qualify on bank statement deposits instead of a tax return, which usually understates their income. Bank statement documentation is available on HELOCs for primary residences, second homes, and investment properties, and on HELOANs up to $1,000,000 for primary residences, and up to $750,000 for second homes and investment properties. Read our home equity loans and lines of credit guide to learn more.
Can I get a HELOC or HELOAN after bankruptcy?
Yes, after a four-year waiting period. Griffin Funding’s home equity programs require four years from the bankruptcy discharge or dismissal date. Once the four-year period has passed, Griffin Funding may consider your HELOC or HELOAN application as long as you’ve maintained a positive credit history, made your mortgage payments on time, and meet the program’s underwriting requirements.
If you’re still within the four-year waiting period, Griffin Funding offers recent credit event loans for borrowers recovering from bankruptcy, foreclosure, or another major credit event. These mortgage programs have different eligibility requirements and loan structures than traditional HELOCs and HELOANs, providing an alternative financing option before the four-year period ends.
Can I get a HELOC or home equity loan on a Michigan investment property owned by an LLC?
Yes. Griffin Funding offers DSCR home equity loans for Michigan investment properties titled in an LLC or corporation, allowing the property to remain in the entity’s name. Qualification is based primarily on the property’s rental income and debt-service coverage rather than personal employment income, eliminating the need for personal tax returns, W-2s, pay stubs, or personal debt-to-income calculations.
The fixed-rate DSCR home equity loan provides $100,000 to $500,000 as a lump sum, requires a minimum credit score of 680 and a DSCR of at least 1.0, and allows up to 80% combined loan-to-value (CLTV) for borrowers with credit scores of 720 or higher.
Griffin Funding also offers a DSCR HELOC for LLC-owned investment properties. This revolving credit line has separate credit score, DSCR, CLTV, and prepayment requirements. Entity, ownership, guaranty, title, and underwriting requirements apply to both programs.
Transferring a property out of an LLC or corporation to obtain financing can affect its title, insurance, taxes, liability protection, existing mortgage, and operating agreement. Confirm the financing structure with Griffin Funding, your title provider, insurer, and legal or tax adviser before changing ownership.