Department of Community Development

Housing Rehabilitation Loans

The City of Jackson provides low-income homeowners and rental property owners with a variety of loans for the repair of residential properties. The loans are from state and federal sources, with low interest rates from 0% to 8%, and are designed to make repairs more easily affordable while bringing properties up to code. Each loan program has specific functions, which are as follows:

Emergency Hazard Loan
Used to repair emergency hazardous systems (i.e. furnaces, electrical, roofs, etc.) in owner-occupied properties containing no more than two units.

• Maximum loan amount of $10,000
• All hazards must be repaired up to City code
• Only applicants whose household income is less than 80% of median income are eligible (as defined by HUD)

Exterior Only Code Enforcement*
Used to correct exterior code violations, as well as interior hazardous conditions, as cited under the Exterior Code Enforcement Program.

• Maximum loan amount of $20,000
• Only properties of two or fewer units are eligible

Deferred Loan*
Used to repair current and developing City code violations in owner-occupied properties with no more than two units.

• Maximum loan amount of $20,000
• Only applicants whose household income is less than 80% of area median income are eligible (as defined by HUD)

MSHDA PIP Loan*
Used to repair current City code violations, developing violations and general improvements on owner-occupied rental properties.

• Maximum loan amount of up to $25,000
• Interest rates from 1% to 8% (based on income)
• Offered by the MichiganStateHousing Development Authority
• Only applicants with a household income less than $54,750 and debt-to-income ratio of less than 45% are eligible
• Loan amount dependant upon the number of units in non-owner-occupied rental properties
• Also offered by some banks for non-owner-occupied rental properties

World Changers
An outreach program of the Northern American Mission Board of Southern Baptist Convention that stresses hands-on volunteer youth involvement in building community through home construction and renovation work.

• Hundreds of supervised volunteer youth every year from across the U.S.
• Roofing, exterior carpentry and painting services
• Materials provided by the City

*The federal government requires the elimination of lead hazards in properties repaired with these loans. The cost of eliminating lead hazards is treated as a forgivable loan, with 20% of the cost forgiven each year over a five-year period. The owner must use the home as their primary residence during this period. For more information on any of these loans, or to obtain an application, contact us today.

Standard Loan Process

• Submit an application.
• Applicant financial interview is conducted.
• Property is inspected, with results being sent to the applicant.
• Repair bids are requested from three contractors.
• Scope of project is reviewed with applicant, inspector and financial assistant.
• Contractor agreement is prepared for review and adjusted if needed.
• Loan closing is conducted and mortgage documents are recorded.
• Construction contract is signed and contractor obtains necessary permits.
• Work is performed.
• Once complete, work is inspected, contractor waivers of lien are obtained, owner signs for acceptance of work and contractor is paid.