If you drive around the streets of Detroit, it’s pretty much inevitable that you’re going to see a home that could use repair. Often, the reality is traditional lenders such as banks do not make funds available inside America’s inner cities (for instance, less than 400 mortgages were written within the 139 square miles of the City of Detroit last year).

So, Detroit is trying to fix its own problem – access to capital. One way to do this is through no interest loans to city residents. On the new site, DetroitHomeLoans.org, it says “You believed in Detroit. Detroit believes in you.”

The program is a partnership with the City of Detroit, the Detroit Local Initiatives Support Corporation (LISC) and Bank of America.

Here’s how it works. The Detroit 0% Home Repair Loans Program offers 0% interest loans from $5,000 to $25,000 to help homeowners invest in and repair their homes, with the stated goal of promoting public health and safety, increasing property values and helping residents secure and maintain homeowner’s insurance. The loans are for 10 years, but can be paid back early.

There are three things to this program to keep in mind. There are qualifications (such as a 560 credit score),  it’s for specific kinds of repairs, and also if you’re above a certain income the loans are only available in certain parts of the city (but as you’ll see on the map, it covers quite a bit).

Areas where people of any income can get a 0% home repair loan under the new program.
Areas where people of any income can get a 0% home repair loan under the new program.

Here are the basic requirements:

  • Homeowners must own and occupy their home for at least six months prior to applying.
  • Low-income homeowners can apply no matter where they live. For a family of four, they’re drawing the line at $54,150.
  • Regardless of income, homeowners in designated areas in each city council district can still apply.
  • The minimum credit score required is 560. If you don’t qualify for a loan, we’ll help you improve your credit score with free credit counseling.
  • Homeowner’s insurance and taxes must be current.
  • The homeowner must be able to afford the loan payments.

And here’s what you can use the repairs for:

  • Correcting health and safety hazards (required)
  • Electrical repairs
  • Furnace replacement
  • Roof replacement
  • Plumbing
  • Door and window replacement, restoration or maintenance
  • Porches and structural support

Contractors used in the program must be from an approved list that the City of Detroit will provide.

For more information or to apply, check out the Detroit Home Repair Loans website. 

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