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.
SepticSmart Week is September 15-19, 2025! Ways to learn and get involved:
- Learn more about your septic system through Michigan Saves’ blogs
- Sign up for emails to receive information right to your inbox
- Attend EGLE’s free “Septic Systems and the Environment” webinar on September 15 at 9 a.m. EDT (register here)
Tier one: Income-qualified loans
Tier one loans are available based on household income (proof of income required); however, other financial indicators from your credit report are also used to determine 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
- 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
2025 Income Eligibility*
| Persons in Household | Maximum Annual Household Gross Income to Qualify |
| 1 | $31,300 |
| 2 | $42,300 |
| 3 | $53,300 |
| 4 | $64,300 |
| 5 | $75,300 |
| 6 | $86,300 |
| 7 | $97,300 |
| 8 | $108,300 |
*Other financial indicators from your credit report are also used to determine eligibility
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 starting from $1,000 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?
Loan amount: How much do you want to borrow?
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 | 6.49% | Up to 180 | |||
| Macomb, Oakland, St. Clair, Wayne | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$50,000 | 6.49% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$60,000 | 6.49% | Up to 180 | |||
| All Lower Peninsula Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$75,000 | 6.69% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$60,000 | 6.75% | Up to 180 | |||
| All Michigan Counties | |||||
| Amounts | Rates As Low As | Terms (months) | |||
|---|---|---|---|---|---|
| $1,000—$75,000 | 7.25% | 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 receive resources and updates about the latest developments regarding the Septic Replacement Loan Program.
Learn More About Your Septic System
With proper care, septic systems can function effectively for decades, but their longevity depends on various factors, including construction materials, maintenance practices, and environmental conditions.
Septic systems are essential for managing wastewater in areas without municipal sewer. Knowing more about how septic systems work can help you understand the importance of proper use and maintenance for ensuring the health of your home and protecting the environment.
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.
