1. MSHDA
  2. Homeownership
  3. Home Improvement

Property Improvement Program (PIP) Loans for Homeowners

Apply through a MSHDA approved Participating Lender or Community Agent after reviewing the details below.

How do I estimate my payments? 

  Interested in becoming a Lender or Community Agent?

What Are The Loan Benefits?

  • Loan terms up to 20-years keeps monthly payments affordable

  • No appraisal required

  • No lien placed on loans under $7,500.

Who Can Apply?

Homeowners with equity in their home, annual household income up to $105,700 with a credit score of at least 620.  The home must be the borrower's primary residence, either single-family or manufactured home, located in Michigan. Cumulative Loan to Value is 105%. 

How Much Can I Borrow?

Loan amounts vary depending on the property type up to $25,000.

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.

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 replacements

How Do I Get Started?

Gather the necessary documents to apply and contact MSHDA-approved Participating Lender or Community Agent located in your area for an application.

  • State-licensed contractor's detailed cost estimate

  • Driver's License

  • Proof of Social Security number

  • Income verification (30-day current pay stubs, SS or pension benefit's statement.)

  • If self-employed, copies of two year's prior Federal tax returns

  • Copy of Mortgage Statement

  • Proof of State Equalized Value (SEV) or recent Appraisal

  • Proof of ownership (owners Title Insurance policy or copy of the recorded Warranty Deed)

  • Proof of property taxes paid up to date, if taxes are not escrowed into mortgage.