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MSHDA - Michigan State Housing Development Authority Michigan State Housing Development Authority
Michigan State Housing Development Authority
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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% - APR 4.5653%

  • Gross Household Income $20,000 to $39,999 - 6% - APR 6.6123%

  • Gross Household Income $40,000 to $105,700 - 8% - APR 8.6610%

The annual percentage rate (APR) quoted above represents a typical $10,000 FHA-insured fixed rate loan with a 20-year term.  This APR is based on a 2% origination fee, $200 application fee and $100 inspection fee.  Please note that the APR may vary depending upon the Mortgage Loan Fees the participating lender charges the borrower.


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.