City of Detroit 0% Interest Home Repair Loan
U-SNAP-BAC provides a host of homeowner services, including serving as an intake center for the City of Detroit's 0% Interest Home Repair Loan.
This is a loan from $5,000 to $25,000 available to City of Detroit residents to help with home repairs and maintaining a safe and healthy home. If you are interested in applying for the loan, or have any questions about the process, please give us a call at 313-640-1100.
Who is Eligible?
- Residents must own and occupy a single family or duplex home located in the City of Detroit for at least six months.
- Homeowner’s insurance and property taxes must be current or have an approved payment plan with County Treasurer; a quote is required if you do not have homeowner’s insurance.
- Residents may not currently be in bankruptcy. To be eligible to apply, bankruptcy must be discharged for at least one year.
- Residents with a reverse mortgage are not eligible to apply.
- Meet Income Eligibility Requirements or live in a HUD approved targeted neighborhood (www.detroithomeloans.org to see if you are in a targeted area). Income for residents in a HUD approved targeted neighborhood can exceed the limits listed below:
How it works
- 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).
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- 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.
What are the Homeowner Requirements and Responsibilities?
- 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.
What Repairs Qualify?
- Correcting health and safety hazards including: lead, asbestos and mold
- Electrical and plumbing repairs
- Furnace/HVAC replacement
- Roof replacement
- Door and window replacement
Download the application here.
Homeowner's Property Tax Assistance Program (HPTAP)
U-SNAP-BAC assists homeowners in the City of Detroit with completing the HPTAP application. HPTAP 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 HPTAP approved homeowners. The HPTAP application is an annual application, homeowners must apply every year.
Do I Qualify?
Eligibility for the HPTAP 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.
What do I Need to Provide?
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),
- 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.
- If your income is higher than the guidelines, you can list appropriate debts and expenses with supporting documentation, which may be used to offset your income.
- If your income or assets are higher than the guidelines, please explain your special circumstances and why your application should be approved.
- 2020 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.)
2021 applications are required to by filed by December 13, 2021.
The Application can now be completed online or downloaded here:
2021 HPTAP Application