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Home repairs are a necessary, but expensive, part of owning a home. For Michigan homeowners who qualify, there are grants and low-interest loans that can help cover home repairs, updates, and renovations that improve the home and, by extension, the neighborhood and larger community.
Here, we’ve rounded up a variety of loans and grants for home repairs in Michigan along with the requirements for each program and where to find the application. We’ve also included tips for how to find programs in your specific county or city.
Single Family Housing Repair Loans and Grants
The U.S. Department of Agriculture Rural Development offers Single Family Housing Repair Loans & Grants in Michigan. This program is also known as the Section 504 Home Repair program. It provides low-interest home loans to low-income homeowners, so they can repair, improve, and modernize their homes. To qualify, homeowners must meet income requirements and the property must be in an eligible rural area.
Homeowners who qualify for low-income loans can receive a maximum loan of $40,000 with a 1% fixed interest rate and a 20-year term length. Homeowners at least 62 years old who meet the income limits can apply for a grant with a lifetime limit of $10,000.
- Applicant must be the homeowner and occupy the house
- Applicant must be unable to obtain affordable credit elsewhere
- Household income must be within the income limit
- For grants, applicant must be age 62 or older and not able to repay a repair loan
Apply through your local Rural Development office.
Neighborhood Impact Program (NIP)
The Neighborhood Impact Program (NIP) through Federal Home Loan Bank (FHLBank) Indianapolis member financial institutions and MSU Federal Credit Union, for example, offer subsidies up to $7,500 to complete eligible home rehabilitation or repair projects. You can check with your bank to see if they offer the NIP program.
- Home repairs must be completed within six months of fund distribution
- Household income must be at or below 80% of the HUD median income limits based on household size for the area
- Existing mortgage and property taxes must be current.
- Residence must be owner-occupied
- Funds must be used for an eligible rehabilitation or repair project
Ask your bank to see if they offer the NIP program and to apply.
Accessibility Modifications Program (AMP)
The Accessibility Modifications Program (AMP) is also offered by FHLBank Indianapolis participating banks and is intended for homeowners 62 and over or owner-occupied homes that include a resident with a permanent disability. It provides funding for accessibility modifications and minor home rehabilitation that includes installing ramps, handrails, levered door handles, and zero step entries, making bathroom modifications such as walk-in/roll-in showers, grab bars, roll-under vanity, lowering kitchen cabinets, widening doorways, and more. The maximum subsidy is $10,000.
- Home modifications need to be completed within six months of fund disbursement
- All members of the household must be 62 years old or older OR include member(s) who have a permanent disability and receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)
- A household where all members are 62 years and older and age 17 and younger could be eligible if the 62 year-old members are the documented legal guardians of the members age 17 and younger
- Household income must be equal to or less than 80% of the area median income (AMI) based on family size
- Existing mortgage and property taxes must be current
- Residence must be owner occupied
- Funds must be used for an eligible modification project
Apply through your local FHLBank Indianapolis participating lending institution.
Habitat for Humanity Home Preservation Program
The Habitat for Humanity Home Preservation Program offers home repairs for low-income homeowners who need help with home maintenance as a result of either physical or financial hardship. While this is a Habitat for Humanity program, local Habitat for Humanity organizations oversee the applications and completion of projects. In some cases, an affordable loan is made to the homeowner, and their payments are then placed in a revolving fund used to fund other Home Preservation repairs.
Michigan Home Repairs
Michigan’s State Emergency Relief can assist with home repairs needed to remedy unsafe living conditions and repair essential home systems. This program offers repairs for the furnace, hot water heaters, and septic systems as well as non energy-related repairs.
- The applicant must be the owner or purchaser of the home. The applicant can hold a life estate or life lease on the home and have the responsibility of repairs
- Must be the applicant’s permanent, usual residence
- The home cannot be listed for sale
- The home cannot be in jeopardy of loss
- The applicant must be able to afford the ongoing cost of maintaining the home. Total housing costs cannot exceed 75% of the household’s net income
You can apply through the MIBridges website.
Mi Lead Safe
If you’re concerned about lead levels in your home or drinking water, the Mi Lead Safe Home Program allows you to apply for home lead services, learn about lead in drinking water, and find out where to get a blood lead test.
County and city specific programs for home repair grants in Michigan
Detroit Home Repair Program
The Detroit Home Repair Program offers 10-year interest-free loans between $5,000 and $25,000 intended to help Detroit homeowners rectify any health or safety hazards, increase property values, and help residents obtain and keep homeowners insurance. This program is geared towards low-to-moderate income households.
- Minimum credit score of 560
- Debt-to-income ratio of 45% (with housing to not exceed 35%)
- Loan-to-value cannot exceed 150%
- Insurance and property taxes must be current
- Must be able to afford the loan payments
You can fill out the application through their website.
Weatherization Assistance Program (WAP)
The Weatherization Assistance Program provides weatherization services at no cost to the homeowner or renter. Weatherization services include wall insulation, furnace evaluation, air leakage reduction, and more. Homes that have been weatherized in the past 15 years aren’t eligible for this program. There are also income limits for households looking to enroll in the program.
The program is currently at capacity, but you can join the interest list by filling out Wayne Metro’s Universal Application.
Home Improvement Programs
Washtenaw County’s Home Improvement Programs offer free services, including insulation and air-sealing, furnace maintenance, refrigerator replacement, accessibility ramp installation, and more. To qualify for assistance, household income can’t exceed 80% of the area median income.
You can fill out their information request to see if you qualify and request services.
Handyman Connection Program
The United Way of Washtenaw County offers free home repair services to low and moderate income households through their Handyman Connection Program.
To find out more information and apply, they require you to call 2-1-1 from your phone to get started.
Home Improvement Program
The Oakland County Home Improvement Program offers interest-free loans up to $18,000 for needed home repairs. You aren’t required to make any payments on the loan until you move out of the home, at which point the loan amount is due and payable. Repairs and upgrades include basement waterproofing, insulation, structural defect repairs, plumbing repair, porch repair, and more.
- Applicant must own and live in the home
- The home must be in Oakland County (the City of Lake Angelus, Novi Township, Southfield Township, and Village of Bingham Farms do not participate in this program)
- Applicant must meet federal income limits
Rebuilding Together Southeast Michigan
Rebuilding Together Southeast Michigan (RTSEM) is a local nonprofit that offers no-cost home repairs to homeowners who meet the requirements. The work is performed by volunteers and contractors, and RTSEM works with around 40 partners each year, including small businesses, corporations, civic and faith-based organizations to organize 1,000 volunteers to make this happen.
- Applicant must own and live in the home
- Mortgage payments and property taxes must be current
- Applicant must have a current homeowners insurance policy
- Home must be a free-standing, single-family home
- Applicant must be a senior citizen (over 60 years old), receive Federal disability benefits, be a veteran, or have children living in the home.
- Household income cannot exceed 80% of HUD’s area median income. Priority is given to those households with a median income of up to 50% of HUD’s area median income
To apply, fill out the application and include the required documentation.
Tips for finding home repair grants and loans in your area
The first step to finding home repair grants and loans in your area is to Google “home repair grants [your county]”. Typically, a local government page will list programs available in the area or give contact information for local programs. Other organizations like The United Way and Habitat for Humanity may also offer services in your area.
Other sites, such as MiPlace from the Michigan Economic Development Corporation (MEDC), have resources to help guide you to assistance programs. Their Michigan Resource Guide: Single-Family Home Repair Programs includes a list of home repair assistance programs along with a description and link to the program site.
The U.S. Department of Housing and Urban Development (HUD) provides grant money to communities who can choose to use the funds for home improvement assistance. You can check their website for programs specific to your area and find other home improvement assistance resources.
Other options for home repair funding
Consider a HELOC to pay for repairs
A home equity line of credit (HELOC) works much like a credit card, where you have a certain amount of credit available based on the amount of equity you have in your home. Even though you’re accessing your equity, it still works like a loan after you have borrowed the funds and you will have to pay the money back with interest.
It’s possible that a HELOC could have a lower interest rate than other loans, but you should also take into consideration that your home will be used as collateral for the credit you use and there will be fees involved such as an application fee, annual fee, or an early closure fee.
Consider a cash-out refinance
A cash-out refinance allows you to refinance your home and access the equity as a cash payment. This money can then be used to make repairs and improvements to your home. If you do decide on a cash-out refinance, make sure to take into account the costs associated with refinancing, including closing costs and the possibility of higher payments.
If you need to make emergency repairs, this likely isn’t the best option because you’ll have to go through the refinancing process, so the funds won’t be available immediately.
Sell your home as-is and move on!
If you’re ready to move, but either can’t afford the expense or don’t want to invest the time and money in making repairs to get the home ready to list, consider selling your home as-is. With HomeLight’s Simple Sale platform, you can receive a cash offer on your home. With this program, you won’t have to deal with scheduling and overseeing repairs, listing the home, preparing for showings, or fielding offers. And, you can sell your home in as few as 10 days!