Housing Rehabilitation Program

Eddie Patrick
Saginaw County Housing Assistance Associates
(989) 797-6802

The staff of the Saginaw County Planning Department administers several housing rehabilitation assistance programs for the Michigan State Housing Development Authority (MSHDA). These programs are available to low and moderate income residents of Saginaw County excluding the City of Saginaw, as they administer their own housing rehabilitation programs. However, the Property Improvement Program (PIP) is also available to City of Saginaw residents. The following MSHDA programs allow homes to be brought up to HQS (Housing Quality Standards) which could include installing insulation and an energy-efficient furnace, paint, new siding, roof repair, installing new windows, new plumbing, kitchen or bathroom remodeling and upgrading electrical wiring.

MSHDA Home and CDBG Programs
The HOME program provides up to $25,000 for housing rehabilitation, also in the form of a deferred loan or a principal reduction for a PIP loan. The amount can be up to $35,00 if lead paint abatement is required. The home is mortgaged and funds must be repaid in full when the property is sold, transferred or no longer occupied by borrower or death of borrower. Recipients will sign a mortgage and promissory note to the County of Saginaw for the amount of the deferred loan.

HOME funds may also be packaged as a combination of deferred principle reduction loan and zero interest payable loan. This arrangement is available only as a last resort if all other loan sources turn down the applicant. The $25,000 limit for total HOME funds will apply. Both loans require a mortgage.

A 100% Deferred loan only can be granted for households at or below 50% of the (AMI) Area Median Income. The graduated repayment scale is as follows:

50% AMI = 100% of total loan repayable monthly payments
60% AMI = 10% of total loan repayable monthly payments
70% AMI = 20% of total loan repayable monthly payments
80% AMI = 30% of total loan repayable monthly payments

Property Improvement Program (PIP)
The MSHDA Property Improvement Loan Program is designed to provide lower rate repayable for residential property improvements. These loans are originated by local participating community agencies and/or lenders and are purchased and serviced by MSHDA.

A borrower may make application directly to a participating lending institution. The lender originates the loan following the steps outline in this Guide and then forwards the loan to MSHDA for commitment. Loans are made available throughout the lending institution's normal lending territory.

An additional option allows the borrower to apply through Saginaw County. The County may also assist the lender in making loans by publicizing the program, screening applicants, and performing other tasks as mutually agreed upon. The lender makes the preliminary lending decision and forwards the loan package to MSHDA for commitment prior to closing.

Applicants can receive up to $10,00 in a forgivable 5-year loan, if they qualify.

Gross Annual Household Income Interest Rate
Less than $13,000 1%
$13,000 - $16,999 3%
$17,000 - $21,999 5%
$22,000 - $27,999 6%
$28,000 - $43,575


The term for most loans will continue to be 30 years, but, in extraordinary circumstances (housing cost exceeding 29% of gross monthly income but a very good credit risk, etc.), it may be extended up to 40 years.

For those households with income exceeding 80% of the county median income, the maximum project cost will be $99,000 which can include a garage and basement.

Project cost for households at 80% of median or less cannot exceed $60,000 except that an additional $5,000 could be available for the installation of a full basement or the purchase of a unit with an additional bedroom due to larger family size. Loans for these households will be subsidized with MSHDA HOME funds.

The debt to income ratio limit will not exceed 55%.
Liquid assets above $10,000 will be used to reduce the amount borrowed.

Since 1993, 183 homes in Saginaw County have benefited from these programs. More detailed information on the numbers of homes rehabilitated and their geographic distribution is available from the Saginaw County Housing Assistance Associates at (989) 797-6802.

Saginaw County rehabilitates homes throughout the County, excluding the City of Saginaw as they have their own Housing Rehabilitation Programs.


Each of the programs listed above has income limits and other restrictions. The following table lists income range a household can have for each program. Contact Eddie Patrick (989) 797-6802 to find out about further eligibility requirements and program specifics.

Income Range*
Loan-HOME Funds
RHP PIP Repayable Loan
HOME Funds
50% of Saginaw
County Median
Up to 100% of
Yes Yes Yes,
If necessary***
60% of Saginaw
County Median
Up to 90% of
No Yes Yes,
If necessary***
70% of Saginaw
County Median
Up to 80% of
No Yes Yes,
If necessary***
80% of Saginaw
County Median
Up to 70% of
No Yes Yes,
If necessary***

* For Income Limits by Household size, see next table
** Total HOME Funds for one homeowner: $25,000 Maximum
*** Balance of Project cost may be provided from any other source obtained by homeowner and deposited with Saginaw County Funds prior to signing of construction contract

Household Income Range Household Size/Income Limit
One Two Three Four Five Six Seven Eight
50% of Saginaw
County Median
19,500 22,300 25,100 27,900 30,100 32,350 34,550 36,800
60% of Saginaw County Median 23,400 26,760 30,120 33,480 36,120 38,820 41,460 44,160
70% of Saginaw County Median 27,300 31,220 35,140 39,060 42,140 45,290 48,370 51,520
80% of Saginaw County Median 31,250 35,700 40,200 44,650 48,200 51,800 55,350 58,950