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Home Improvement Loans for Landlords
What Are The Loan Benefits?
- Competitive 8%* interest rate
- Loan terms up to 20 years keeps monthly payments affordable
- No appraisal required
- No out of pocket costs
- Lien requirement for all Landlord loans
*The annual percentage rate (APR) 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, but can be:
- Up to $25,000 for a single-family rental property
- Up to $12,000 per unit for up to 5 multi-family rental units in a maximum 11-unit building
Who Can Apply?
There is no household income limit for Landlords; however, the property and landlord must be located in Michigan. Investment property owners with a credit score of at least 620. Larger loan amounts require a minimum credit score of 660. The property must be located in Michigan and be either a single-family rental property or a multi-family rental up to 11 units. There must be equity in the property CLTV is 105% 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 the property. Major systems repairs, replacement and energy efficiency updates are possible including:
- Roofing, insulation, siding, windows or doors
- Heating and air conditioning
- Plumbing and electrical
- Kitchen and bathroom remodeling
- Garage, carport and deck construction
- Attic and basement finishing
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.)
- Copies of two year's prior IRS 1040 tax returns, including all Schedules and W-2s
- Proof that all property taxes are paid and current homeowner insurance policy copy
- Proof of State Equalized Value (SEV) or recent appraisal
- Proof of ownership (owners title insurance policy or copy of the recorded warranty deed)
- Copy of current lease and mortgage statement on property
- If multi-unit building, proof of number of units
Talk with a MSHDA-approved participating Lender or Community Agent today about qualifying and applying for a PIP loan.