The Septic Replacement Loan Program (SRLP), created in partnership with the Michigan Department of Environment, Great Lakes, and Energy (EGLE), provides low-interest financing to Michigan homeowners for the replacement of failing or near-failing septic systems. EGLE contracted Michigan Saves to develop and manage the program.
A failing septic system can back up wastewater into your home or discharge wastewater onto the ground surface, potentially contaminating surface and drinking water supplies. This can expose children and pets to dangerous bacteria and viruses in your yard, which can then be tracked into your home. Replacing a failed septic system can be an unexpected financial burden, which is why the SRLP provides low-interest loan options for Michigan homeowners in need.
Homeowners can access two loan tiers by working with a Michigan Saves authorized septic installation contractor: income-based financing (tier one) and market-based loans (tier two). Information collected in the loan application will determine the tier the applicant will be considered for. For both tiers, actual rates, terms, and loan amounts may vary based on factors collected during the loan application.
Tier one: Income-qualified loans
Tier one considers a customer’s household income. Loans range from $1,000 to $30,000 per project, with a blend of traditional credit and noncredit underwriting criteria to qualify customers. Note that proof of income is required with your tier one application.
- Income-based loan
- Unsecured loan, no lien or collateral required
- Ability-to-pay underwriting criteria with limited use of traditional credit factors
- Interest rate no higher than 1%; terms up to ten years
- Loans only available through TRUE Community Credit Union
2024 Eligibility
| Persons in Household | Maximum Annual Household Gross Income to Qualify |
| 1 | $29,160 |
| 2 | $39,440 |
| 3 | $49,720 |
| 4 | $60,000 |
| 5 | $70,280 |
| 6 | $80,560 |
| 7 | $90,840 |
| 8 | $101,120 |
How to Get Started
Select your Michigan saves authorized septic installation contractor. Search for authorized contractors using our Find Your Contractor tool.
Contact your local health department to establish the project scope and to obtain a construction permit. All systems permitted through the SRLP must be designed in accordance with the program minimum standards.
Apply for a Michigan Saves loan online once you have obtained an LHD construction permit and bid from your authorized contractor.
Have a contractor that isn’t authorized through Michigan Saves? Getting authorized is easy. Contractors can learn more at michigansaves.org/septiccontractors.
Source of article: https://michigansaves.org/septic/?utm_source=Michigan+Saves&utm_campaign=877bbc3937-Second+Quarter+Michigan+Saves+in+the+News&utm_medium=email&utm_term=0_-e66ad8c125-%5BLIST_EMAIL_ID%5D
