H.U.D. Loans

   The city's low-interest residential rehab loan program has been so successful and so popular that there is currently a lengthy list of people waiting to participate. Homes are improving all around the city, with the help of the home repair program, which uses funds allocated by the U.S. Department of Housing and Urban Development to the Dearborn Heights Community and Economic Development Department .The Residential Rehab Program is designed to help low and moderate income homeowners to make necessary repairs to bring their homes up to minimum city code. Payments for the five percent interest loans are calculated to be affordable to the borrower who may have as long as 20 years to repay. Some deferred loans are available for extremely low-income borrowers.

Residential Rehab: (313) 277-7838 Rental Rehab: (313) 277-7071

   Loans may be used for repairs like replacing a roof or a furnace, plumbing and heating repairs and the replacement of siding sidewalks , driveways, and windows. Additions, garages and general remodeling are not allowable under the program. Applicants must have lived in their homes for at least two years to qualify. Applications are still being accepted, though it will take a year or more to get through the current waiting list. Income criteria for rehab loans are listed below . For more information on this program call the Community and Economic Development Department at (313) 277-7838 Applications will be mailed upon request.

FAMILY SIZE	LOW INCOME	MAXIMUM INCOME
1	17,550	28,050
2	20,050	32,050
3	22,550	36,050
4	25,050	40,100
5	27,050	43,300
6	29,050	46,500
7	31,050	49,700
8	33,050	52,900

   Rental Rehabilitation: Owners of rental property located in Dearborn Heights are eligible for low interest rehabilitation loans to improve their rental property. This program, specifically designed to bring rental properties up to city code. also helps to improve the total appearance of the property.

   You may borrow up to $25,000, with an interest rate of 5%, if you meet program requirements, determined by the Department of Housing and Urban Development: (1) The property must be located in Dearborn Heights, (2) The property must be rehabilitated, as determined by an inspection of the Building Department, (3) The property must remain a rental property during the course of repayment period and (4) Renters must be low to moderate income families and remain so during the course of the loan.

   Applications are reviewed by a five member independent loan review board. If approved, you will have to obtain three bids from contractors licensed, insured and approved by the Department of Housing and Urban Development. A pre-construction conference will be conducted to clarify all phases of the repair work before work begins.

   You have up to five years to repay the loan, or it may be pre-paid without penalty.

   Interested landlords should contact the Community and Economic Development Department at 277-7071 for further information and an application for the rental rehabilitation program.