Types of Loans & Income Eligibility

Forgivable Loans


Limited funds are available to income qualified households for exterior improvements only. Forgivable loans may not exceed $15,000. All funds will be provided in the form of a loan which is forgiven in equal parts over 10 year period. The single-family dwelling must remain the primary residence of the recipient for the entire period.

0% Interest Loans


Regular monthly installment loans, up to $40,000 with payments at zero percent interest, require applicants to be the owner and occupant of a single family dwelling with a household income that does not exceed the below requirements.


2021 Income Limits


Household Size Maximum Income*
  • 1 person $44,800
  • 2 persons $51,200
  • 3 persons $57,600
  • 4 persons $64,000
  • 5 persons $69,150
  • 6 persons $74,250


Low Interest / Deferred Loans


The program also accommodates the many Royal Oak homeowners living on limited incomes for whom loans with a low interest rate are still out of reach. Homeowners may be eligible for a deferred loan not to exceed $40,000. These loans require no monthly payment for a time determined by the city's Loan Committee.

Three percent (3%) payment commences upon date determined by the city's Loan Committee on an individual basis which is normally 5 - 10 years. Loan are due automatically when the property is sold or transferred prior to the determined date. Applicants for deferred loans must have a household income that does not exceed the below requirements.

2021 Income Limits


Household Size Maximum Income*

  • 1 person $28,000
  • 2 persons $32,000
  • 3 persons $36,000
  • 4 persons $40,000
  • 5 persons $43,200
  • 6 persons $46,400
* 2021 HUD determined M.F.I. effective April 1, 2021