Thinking about updating your Traverse City home without draining your savings? Whether you want a quieter, warmer house this winter or you are buying a fixer that needs serious work, there are smart, low‑cost ways to finance upgrades here. You deserve clear options, simple steps, and real local resources that can help. This guide breaks down trusted programs, how to stack rebates with loans, and what to watch for on timing and approvals so you get the most value. Let’s dive in.
Low-cost paths in Traverse City
Energy upgrades: Michigan Saves and MiHER
If your project is an energy upgrade, start with two pillars. First, look at unsecured financing through Michigan Saves. It works with approved contractors and lenders to offer relatively low rates for heat pumps, insulation, windows, solar, EV chargers, and more. Second, check the state’s Home Energy Rebates (MiHER). The program offers income‑tiered rebates for whole‑home efficiency and electrification. The rollout includes contractor approval and, in many cases, contractor‑direct rebate payments. See the latest details in EGLE’s MiHER announcement.
Local utilities can reduce upfront costs too. Traverse City Light & Power provides residential rebates for heat pumps, equipment, and recycling. Cherryland Electric Cooperative also posts a yearly rebate schedule for members. Many incentives require pre‑approval, so confirm rules before work begins.
Purchase plus renovate mortgages
Buying a fixer and want renovation funds in your mortgage? Two well‑known options are FHA 203(k) and Fannie Mae HomeStyle Renovation. FHA 203(k) combines purchase and rehab in one loan with lower down‑payment options, though it comes with more paperwork and mortgage insurance. Review FHA’s overview on fixing up your home. HomeStyle Renovation is a conventional path that can finance a wide range of repairs and energy improvements at mortgage rates for qualified borrowers. See Fannie Mae’s HomeStyle guide for scope and requirements.
Rural repair help
If your address qualifies as rural and you meet income limits, the USDA Section 504 program can be a lifeline. Eligible very‑low‑income homeowners may access subsidized 1 percent loans and, for seniors, grants for health and safety repairs. Learn more on the USDA Single‑Family Housing Repair Loans and Grants page.
Local grants and repair programs
Grand Traverse County’s Land Bank Authority lists Home Rehabilitation Assistance resources and may connect you with funding avenues. The City of Traverse City uses CDBG funds to support homeowner rehab priorities set in annual plans. Nonprofits such as Habitat for Humanity Grand Traverse Region run repair programs with income‑based terms, and the Northwest Michigan Community Action Agency provides Weatherization Assistance for eligible households. Many local programs have income limits and waitlists, so apply early.
PACE for multifamily or commercial
Property Assessed Clean Energy, or PACE, operates in Grand Traverse County for commercial, nonprofit, institutional, and many multifamily properties. It is not a current option for ordinary single‑family homes in Michigan. For property types that qualify, lender consent and program rules apply. See the Lean & Green Michigan PACE FAQ for eligibility and consent requirements.
How to stack rebates and loans
Stacking can lower your out‑of‑pocket costs if you follow the sequence.
- Define scope and price. Get 2 to 3 quotes, and note specific energy measures if relevant.
- Confirm eligibility and approvals. For MiHER, verify your contractor is approved and check whether you must reserve rebates first using state guidance.
- Reserve utility rebates. Many programs, such as TCLP’s incentives, require pre‑approval before starting work.
- Choose financing. For energy projects, consider Michigan Saves. For a purchase plus renovation, talk to your lender early about FHA 203(k) or HomeStyle Renovation.
- Complete work and verify. Keep invoices, pre‑approval letters, contractor IDs, and inspection sign‑offs. Many rebates are paid only after verification.
- If you plan to claim federal tax credits, keep dated receipts and confirm current IRS rules.
Which option fits your project?
- Heat pump, insulation, or electric water heater. Consider Michigan Saves financing, stack with MiHER rebates, and add TCLP or Cherryland utility incentives. Approved contractors and pre‑approvals are key.
- Failing septic system. Michigan Saves offers a septic replacement loan program that includes an income‑qualified low‑rate tier. Start with your health department permit and an authorized contractor.
- Emergency heat or essential repairs on a tight budget. Look to NMCAA Weatherization Assistance and state emergency relief programs for income‑qualified help. Local nonprofit repairs may also be available.
- Big remodel or buying a fixer. Explore FHA 203(k) or HomeStyle Renovation to roll improvements into your mortgage at potentially lower rates than personal loans.
- Duplex or small apartment upgrades. If your property qualifies as multifamily, PACE may finance 100 percent of eligible energy improvements with long repayment terms, subject to lender consent and program rules.
Key fine print and timing
- Contractor requirements. Many programs require approved contractors. Starting work before approvals can void rebates.
- Lien vs unsecured. HELOCs and some loans place a lien on your home. Michigan Saves financing is commonly unsecured, which can simplify resale or refinance. Always confirm with your lender.
- Tax credit deadlines. Some federal residential energy tax credits changed in 2025. The IRS issued FAQs in September 2025 that outline modified expirations and rules. Review the IRS guidance before assuming a credit applies to your project. See the IRS FAQs.
Your next step
Upgrades can boost comfort, efficiency, and long‑term value when you match the right financing to the right project. If you are weighing a purchase that needs work or planning improvements before you sell, you deserve a local advisor who understands cost, timeline, and resale impact in today’s Traverse City market. Reach out to Lydia Wiley to talk through your goals and align the right property or timing with these low‑cost options.
FAQs
What low‑cost financing helps with energy upgrades in Traverse City?
- Michigan Saves offers unsecured loans for approved energy projects, MiHER provides state rebates for efficiency and electrification, and local utility rebates can stack to lower upfront cost.
Can I roll renovation costs into my mortgage when buying in Traverse City?
- Yes. FHA 203(k) and Fannie Mae HomeStyle Renovation can combine purchase and rehab in one loan, subject to program rules, inspections, and lender approval.
Are there income‑based repair programs in Grand Traverse County?
- Yes. The county lists Home Rehabilitation Assistance resources, NMCAA offers Weatherization Assistance, and local nonprofits may provide repair help, often with waitlists and documentation requirements.
Is PACE financing available for single‑family homes in Traverse City?
- No. In Michigan, PACE is designed for commercial, nonprofit, institutional, and many multifamily properties, not ordinary single‑family homes.
What deadlines should I know about for federal energy tax credits?
- The IRS issued updated FAQs in September 2025 explaining changes and expirations for certain residential energy credits, so verify current rules and installation dates before relying on a credit.
