What is an FHA Property Improvement Loan (Title I) Program?FHA Property Improvement Loan Insurance (Title I) Are you looking for an inexpensive home improvement loan? The Federal Housing Administration (FHA) has one that works very nicely. FHA makes it easier for you (the first time home buyer) to obtain affordable home improvement loans by insuring loans made by What is the Title I Program? The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of non-residential buildings on the property, for example a garage. This loan program may be used to insure such loans for up to 20 years on either single or multi family properties. The maximum loan amount is $25,000 for improving a single-family home. The same maximum loan amount applies for improving or building a non-residential structure. Multi-Family Structure For improving a multi-family structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. The FHA Property Improvement Loan (Title I)are fixed rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced rate property improvement loans through Title I lenders. Which lenders can make loans covered by the Title I program? Only lenders approved by HUD specifically for this program can make loans covered by Title I insurance. If you have any questions concerning the FHA Property Improvement Loan (Title I) Program, don’t hesitate to contact me. I will be happy to answer any questions you may have. A word of caution concerning this program. While most lenders and contractors use this program responsibly, HUD urges first time home buyers to use caution in choosing and supervising home repair contractors conducting Title I repair/renovation work. A recent HUD review of Title I uncovered many instances of "unscrupulous contractors performing shoddy work, falsifying documents, over charging homeowners, and using deceptive advertising." HUD encourages homeowners to work directly with their lender in selecting a home repair contractor in order to prevent inflated estimates. ________________________________________________________________ If you would like to retune to Finding the Best FHA Home Loans main page, click here.
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