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Home Improvement Loans for Homeowners

MSHDA Property Improvement Programs 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.

Note: The Helping Hand Web site provides quick access to information about programs and services for people facing economic hardship. The programs and services listed here represent only a portion of those available in Michigan communities. Note that some programs and services have eligibility requirements and may involve wait periods.

Copyright © 2015 State of Michigan