MSHDA Offers Low-cost Loans for Home Improvements

Income eligible homeowners with no equity may borrow up to $25,000 from the Michigan State Housing Development Authority (MSHDA) to make energy-efficiency improvements to their home. With equity, homeowners can borrow up to $50,000.

“Making simple improvements like increasing insulation or replacing an inefficient furnace or old windows can reduce your energy costs by up to 50 percent,” said MSHDA Executive Director Keith Molin.

There are Property Improvement Program loans of up to $50,000 for single-family homeowners and $100,000 for landlords (up to $25,000 per unit). There are no income limits for landlords.

Eligible homeowners may have household incomes of up to $74,750, depending on the location of the home. Interest rates, which range from 4 to 8 percent, are based on household income.

“There is no home equity requirement for loans up to $25,000, so even new homeowners can take advantage of this opportunity,” Molin said. “There also are no points or annual fees.”

“People are looking for ways to save money in the current economy,” Molin added. “Home energy costs can be a significant part of a household budget, particularly in the winter.”

Visit www.michigan.gov/mshda and click on Home Improvement to see the full list of eligible home improvement projects and learn more about the free application process, or call 517-373-8017, or (TTY) 1-800-382-4568.

MSHDA’s vision in the 21st century centers around ideas to improve the quality of life for all Michigan residents by focusing on providing safe, affordable housing through homeownership and rental programs; ending homelessness; and revitalizing neighborhoods and downtowns through urban development initiatives — creating vibrant communities throughout Michigan. MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For information on this and other MSHDA programs, visit the Web site at www.michigan.gov/mshda .