Private Money Lending in Michigan
Michigan is a major private lending market, driven by fix-and-flip activity in Detroit, Grand Rapids, Ann Arbor, and surrounding suburbs.
This guide covers the essential legal and compliance considerations for private money lenders originating loans secured by real property in Michigan. Whether you are a local private money lender or expanding into Michigan from another state, understanding these requirements is critical to protecting your investments and ensuring enforceability of your loan documents.
Key Compliance Considerations for Michigan
• Michigan allows non-judicial foreclosure by advertisement, which is one of the fastest processes at 60-90 days
• There is no usury limit for business-purpose loans; the 25% criminal usury cap applies only to consumer transactions
• Michigan has a 6-month right of redemption after foreclosure sale (reduced to 1 month for abandoned properties)
• The state requires a specific notice format and 4-week publication period before a sheriff's sale
Generate Michigan-Compliant Loan Documents
Automate Loan Docs generates complete, Michigan-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Michigan lending transactions.
This guide is for informational purposes only and does not constitute legal advice. Private lending laws are complex and change frequently. Consult with a qualified attorney before originating loans in Michigan. The attorneys at Geraci LLP are available for state-specific legal consultation.
Related: Usury Laws by State | Deed of Trust vs Mortgage | Multi-State Lending Guide | Glossary