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MILast updated: 2026-01
Michigan Regulations
Comprehensive guide to seller financing laws, usury limits, and disclosure requirements in Michigan.
Maximum Interest Rate
7%
Business exemptions may apply
Usury Laws
Interest rate limits and penalties
Maximum Rate
7%
Penalty Type
Forfeiture of interest
Notes
General usury is 7% but most real estate loans are exempt.
Business Exemption
Loans over $2,500 and business loans are exempt from usury limits.
Seller Financing Requirements
Disclosures, licensing, and restrictions
Required Disclosures
- Seller's Disclosure Statement
- Lead-based paint disclosure (pre-1978)
Licensing Required
No license required
No license required for seller financing own property.
Consumer Protection
Applicable laws protecting buyers
- Michigan Consumer Protection Act
Real Estate Specifics
Foreclosure process and property laws
- Mortgage state
- Both judicial and non-judicial foreclosure available
- 6-month or 1-year redemption depending on circumstances
Legal Disclaimer
This information about Michigan regulations is provided for educational purposes only and does not constitute legal or tax advice. Laws change frequently and vary by county and municipality. Always verify current regulations with a licensed Michigan attorney before entering into any seller financing arrangement.