Homeowner Services

City of Detroit 0% Interest Home Repair Loan

The 0% Interest Home Repair Loan Program launched in April 2015 offers 10-year, interest-free loans from $5,000 to $25,000 to help Detroit homeowners invest in and repair their homes – promoting public health and safety, increasing property values and helping residents secure and maintain homeowner’s insurance.

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  • Must own and live in the home for at least six months prior to applying.  Vacant, unoccupied units are not eligible.
  • Low to moderate income homeowners can apply no matter where they live.
  • Regardless of income, homeowners in HUD designated areas in each city council district can still apply. 
  • The minimum credit score is 560.  Debt to income ratio cannot exceed 45% and housing ratio cannot exceed 35%.  Loan to value cannot exceed 150%.
  • Homeowner’s insurance and property taxes must be current.
  • The homeowner must be able to afford the loan payments.

 

  • The 0% Interest Home Repair Loan Program works like a mortgage loan process. An application must be completed, giving personal financial information, like income, current debt, etc.
  • Your credit history will be reviewed (a credit score at or above 560 is required) and underwriting ratios calculated (45% debt-to-income ratio, 35% housing ratio & up to 150% loan-to-value).
  • Page 2 of 2 Updated 4/2020
  • Application is forwarded to a lender (One Detroit Credit Union or Opportunity Resource Fund), who will review and determine your qualification for the loan.
  • If pre-approved for a 0% loan, the Construction Manager will perform two inspections of your property; (1) a Lead Inspection Risk Assessment; and (2) an inspection to determine home improvement needs/requirements.
  • If pre-approved, you can select up to 6 contractors from the City’s approved contractor pool to bid on the work. If you want to use your own contractors, they must be pre-approved by the City of Detroit Housing & Revitalization Department.
  • The Construction Manager will review bids and select contractor with your input.
  • Repair work will begin. The lender will pay the contractor directly on your behalf. You will not receive a check.
  • You will be responsible for monthly payments based on what you have borrowed. Payments begin 75 days after your loan closing.
  • A lien will be placed on your property if you are approved for a 0% loan.
  • The application process requires your personal information:
  • Applicant and, if applicable, Co-Applicant Income
  • Income & Debt information
  • Proof of Homeownership/Occupancy
  • Proof of Current Property Taxes/Homeowners Insurance.                                
 
  • Correcting health and safety hazards including: lead, asbestos and mold
  • Electrical and plumbing repairs
  • Furnace/HVAC replacement
  • Roof replacement
  • Door and window replacement 

HOPE (formerly HPTAP)

HOPE stands for Homeowners Property Exemption. It is also referred to as the Poverty Tax Exemption, “PTE” or Hardship Program. HOPE provides an opportunity for homeowners to be exempt from their current year property taxes based on household income or circumstances. If approved, you will still be responsible for any fees such as the solid waste fee. The solid waste fee is discounted at to $120 for HOPE approved homeowners. The HOPE application is an annual application, homeowners must apply every year.

  • Eligibility for the HOPE is based on whether you own and occupy your home as your primary residence and your household income or circumstances. Please review the income levels listed below. Most homeowners whose income is below the guidelines are generally approved.

     

    Only the Board of Review may approve an application.

     

    2023 HOMEOWNERS PROPERTY EXEMPTION (HOPE)

     

    Formerly Homeowners Property Tax Assistance Program (HPTAP)

     

    INCOME GUIDELINES

    For an appointment please visit: www.usnapbac.timetap.com

  • To be considered for an exemption on your property taxes, the applicant is required to submit the following to the Board of Review:

    • A completed Michigan Department of Treasury Form 5737 (Application for MCL 211.7u Poverty Exemption) and Form 5739 (Affirmation of Ownership and Occupancy),
    • Registered proof of ownership (Deed, land contract, probate court order, divorce judgment etc.),
    • Any form of government ID with address and picture of the homeowner and all residents over the age of 18,
    • Proof of income for ALL members of the household (this includes any minor children). Examples: W2’s, paystubs, SSI/SSD, pension FIA/DHS, child support, self-employment, signed and notarized letter from who is helping you financially, etc.
    • 2022 Federal and State tax returns for all adults, if filed (if are not required to file a tax return, the adult must complete a Michigan Treasury Form 4988 Poverty Exemption Affidavit and IRS 4506-T and can provide W2’s, social security statements, or any other document that proves the past year’s income),
    • Proof of residency for all minors in the household (such as FIA Statement, Report Card, Transcript, minor listed on tax return, etc.)

     

    The Board of Review reserves the right to request additional information or documents.

    2023 applications are required to be filed by December 11, 2023. 

     

    Under: To Apply for Hope Property Tax Exemption Program

     

    1. (Update) Follow link: https://detroitmi.gov/government/boards/property-assessment-board-review/homeowners-property-exemption-hope
  • To be considered for an exemption on your property taxes, the applicant is required to submit the following to the Board of Review:

    • A completed Michigan Department of Treasury Form 5737 (Application for MCL 211.7u Poverty Exemption) and Form 5739 (Affirmation of Ownership and Occupancy),
    • Registered proof of ownership (Deed, land contract, probate court order, divorce judgment etc.),
    • Any form of government ID with address and picture of the homeowner and all residents over the age of 18,
    • Proof of income for ALL members of the household (this includes any minor children). Examples: W2’s, paystubs, SSI/SSD, pension FIA/DHS, child support, self-employment, signed and notarized letter from who is helping you financially, etc.
    • 2022 Federal and State tax returns for all adults, if filed (if are not required to file a tax return, the adult must complete a Michigan Treasury Form 4988 Poverty Exemption Affidavit and IRS 4506-T and can provide W2’s, social security statements, or any other document that proves the past year’s income),
    • Proof of residency for all minors in the household (such as FIA Statement, Report Card, Transcript, minor listed on tax return, etc.)

    The Board of Review reserves the right to request additional information or documents.

    2023 applications are required to be filed by December 11, 2023. 

    Under: To Apply for Hope Property Tax Exemption Program

    1. (Update) Follow link: https://detroitmi.gov/government/boards/property-assessment-board-review/homeowners-property-exemption-hope

 

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