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Home Improvement Loans for Homeowners
What Are The Loan Benefits?
- Loan terms up to 20 years keeps monthly payments affordable
- No appraisal required and no out of pocket costs
- No lien requirement on loans under $7,500
*The annual percentage rate will be higher depending on the loan amount and financed origination fee.
How Much Can I Borrow?
Loan amounts vary depending on the property type and cumulative loan to value, up to $50,000.
What are the Interest Rates?
Interest rates for homeowners vary based upon the gross household income:
- Gross Household Income $19,999 or less - 4%
- Gross Household Income $20,000 to $39,999 - 6%
- Gross Household Income $40,000 to $105,700 - 8%
Who Can Apply?
Homeowners with equity in their home, annual household income of up to $105,700 and with a credit score of at least 620. Larger loan amounts require a minimum credit score of 660. The home must be the borrowers primary residence, either single-family or manufactured home, located in Michigan. There must be equity in the property; CLTV is 105% for loans under $25,000 and 100% CLTV for loans over $25,000.
What Improvements Are Eligible?
Improvements must substantially protect or improve the basic livability of a single-family or manufactured home. Major systems repairs, replacement and energy efficiency updates include:
- Roofing, insulation, siding, windows and doors
- Heating, air conditioning, plumbing and electrical
- Kitchen and bathroom remodeling
- Attic and basement finishing, garage, carport and decks
- Septic and sewer
How Do I Get Started?
Gather the necessary documents to apply:
- State-licensed contractor's detailed cost estimates
- Income verification (one month's current pay stubs, Social Security benefits statement, etc.)
- If self-employed, copies of two year's prior IRS 1040 tax returns
- Proof that all property taxes are paid and current homeowner insurance policy
- Proof of State Equalized Value (SEV) or recent appraisal
- Proof of ownership (owners title insurance policy or copy of the recorded warranty deed)
Apply through a MSHDA-approved Participating Lender or Community Agent!