Septic Replacement Loan Program
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 and connections to municipal sewer. 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.
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Tier one: Income-qualified loans
Tier one loans primarily assess household income but also review other financial indicators from your credit report. These loans require proof of income but do not use credit score for eligibility.
- Loan amounts from $1,000 to $30,000 per project
- Interest rates no higher than 1%; terms up to ten years
- Unsecured loan, no lien or collateral required
- Credit report check includes a review of financial history, such as debt levels, past bankruptcies, foreclosures, and any outstanding collections
- Loans only available through TRUE Community Credit Union
2024 Income 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 |
Tier two: Market-based loans
Tier two loans are available to all customers and use traditional credit checks to determine eligibility, including factors like your credit score and financial history.
- Loan amounts from $1,000 to $50,000 per project
- Interest rates vary by lender and are based on credit qualifications; see current interest rates in the lenders section below
- Unsecured loan, no lien or collateral required
- Available to all customers based on a credit check
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.
Michigan Saves Residential Lenders
We’ve already negotiated the best rates and terms for clean energy home improvements on your behalf. This simple, affordable clean energy financing is only available through Michigan Saves and is engineered to get you the most for your money, energy, and time.
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What county do you live in?
Available Lenders and Offerings
Loan terms are one year for every $1,000 up to $4,999. For loans $5,000 and higher, customer may select term up to ten years (or higher if applicable). There are no annual or early repayment fees.
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$50,000 | 7.25% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$60,000 | 7.24% | Up to 180 | |||
| All Lower Peninsula Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$75,000 | 7.29% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$100,000 | Contact MSUFCU preferred contractor network | Up to 180 | |||
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All Lower Peninsula Counties MSUFCU preferred contractor network Lender does not participate in the centralized loan application center. Please contact your contractor to apply. |
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| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$60,000 | 7.25% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$100,000 | 7.49% | Up to 180 | |||
| All Michigan Counties | |||||
*All Michigan Saves authorized lenders offer programs for “good” credit and above. These lenders consider lower credit scores.
**Actual rates, terms, and loan amounts vary and depend on market conditions, the lender you choose, and your creditworthiness.
Stay Informed
Join our mailing list to get our updates about the latest developments regarding the Septic Replacement Loan Program.
Learn More About Your Septic System
Whether you’ve recently acquired your first home with a septic system or have lived in one for years, it’s essential to take proper care of your septic system to maintain the health of your home environment. Here’s a simple guide to the care and maintenance of residential septic systems.
Homeownership comes with many responsibilities, one of which is ensuring that your septic system is functioning properly. Here’s how you can identify the need for a septic system replacement and the resources available to help you manage the process.
The Michigan Department of Environment, Great Lakes, and Energy has partnered with Michigan Saves to offer financing for the replacement of failing or near-failing septic systems.