Septic Replacement Loan Program

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. 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.

Program Eligibility

  • Single-family homes, owner-occupied or rental property
  • Sites with documented failing, near-failing, nonexistent, or similarly inadequate septic system (as determined and documented by your local health department)
  • Eligible costs include evaluation of the system, design, pumping, and installation
  • All systems funded through this program must meet SRLP program minimum standards

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

Tier two: Market-based loans

Tier two loans range from $1,000 to $50,000 per project, with traditional credit-based underwriting to qualify customers.

  • Market-based loan
  • Unsecured loan, no lien or collateral required
  • Credit-based underwriting criteria
  • Fixed interest rates vary by lender: Please see current interest rates in the lender section of this webpage.

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

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.

Genisys CU lafcu Lake MichiganCU True Credit Union

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 7.49% Up to 180
All Michigan Counties
Amounts Rates As Low As Terms (months)
$1,000—$75,000 7.69% 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.

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