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. For program participants, the maximum allowed liquid asset limit is $319,369.


0% Interest Loans

Regular monthly installment loans, up to $50,000 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.


2025 Income Limits

Household Size Maximum Income*

  • 1 person $56,600
  • 2 persons $64,650
  • 3 persons $72,750
  • 4 persons $80,800
  • 5 persons $87,300
  • 6 persons $93,750


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 $50,000. 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.


2025 Income Limits

Household Size Maximum Income*

  • 1 person $35,350
  • 2 persons $40,400
  • 3 persons $45,450
  • 4 persons $50,500
  • 5 persons $54,550
  • 6 persons $58,600

* 2025 HUD determined M.F.I. effective April 1, 2025