FHA Property Improvement Loan - Title 1 Program

What is an FHA Property Improvement Loan?

Different maximums are set for manufactured houses, multifamily structures and manufactured houses on permanent foundations. Remember, Title 1 is all about making improvements and repairs to the home you already have, not a fixer upper that you're thinking about buying.

For example, suppose you bought a single family home a year or so ago. Now you want to add on a garage. This would be a great use of the FHA property improvement loan in a case like that. If you have the ability to do this work yourself, then you could apply for one of these loans and build that garage.

You do have to have a good credit history and have the income to pay back this loan. If you borrow over $7,500 it will have to be secured by a second mortgage or deed of trust.

Become like this excited couple and investigate further.

Find a Title 1 Loan Lender

Using HUD, you'll be able to search for and find approved title 1 lenders in your state or region. This can be a challenge to find a lender who will work with this program. However do not worry, we have a way to help you do this.

Below we have some links available to you that can help you find these FHA home loans to do these improvements. Try , they have helped several!

Keep in mind that HUD isn't offering these loans, they are insuring private lenders against loss, and providing you approved lenders to choose from and work with.

Can This Home Improvement Loan Program be Used in a Do It Yourself Way?

Yes, you can complete a do it yourself repair or improvement job as long as you're qualified and approved. Don't try to cut corners though or work the system, and when in doubt, work with professionals and contractors to get the job done. Beware of contractors who seem intent on trying to game you and the system as well. Lenders should be able to help you find available and appropriate contractors to work with depending on your needs.

You need to keep in mind that you will have to complete the project in a timely fashion should you decide to do it yourself. You must verify the work is completed. In most cases they will send out an inspector to see the completed work and then sign off.

What's the Difference Between Title 1 Loan and the 203k Loan?

There is a very big difference between the Title 1 FHA property improvement loan and the 203k rehab mortgage program. The Title 1 loan is to be used for alterations, repairs and site improvements in amounts up to $25,000 for a single family house, and not for the buying of a new home and the repairs of that property all at once.

You can use this loan in conjunction with a 203k loan but you would have to apply for it when you were buying the house.

The FHA property improvement loan can be a wonderful way to finance home alterations and repairs at affordable and accessible rates once you know what it is, how it differs from other programs and how you can get one.

To help you find some of the approved lenders in your community, use the links below. You will find a link to HUD's website where you can search by your city and state.

To find a Title one lender in your area just click here. I hope you find this helpful. Please be sure to like our site at FaceBook by using the icon at the bottom of this page. Thank you in advance!

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