FHA Title I Property Improvement Loan Program
Why am I having a hard time finding a lender for the Title I loan program. I have called several lenders on the approved list from HUD's website and most are not aware of the program and others pushed me onto the 203 program.
I really commend you for doing your homework, reviewing my website, and asking such a good question. As far as the HUD lenders you have called not being aware of a Title I Home Improvement Loan, I cannot answer that.
However, I would like to make sure that you understand what the Title I Home Improvement Loan Program is.
FHA's goal is to make it easier for you to get an inexpensive home improvement loan. They do this by insuring the loan.
So the key is to find a lender who works with this Title I Program. Since this loan program has a maximum of $25,000, that may be why most lenders are saying they have never heard of it. There is a lot of paperwork for a very small loan.
I would suggest you contact the HUD Housing Authority in your area. I found one in your city that specializes in home improvement counseling, Acorn Housing. Their number is 503-788-9989. Keep in mind they are a counseling agency and not a lender, but they may be able to point you to a lender who can do that type of loan.
Now the 203(k) Program is specially designed for you to purchase a home and improve it all under the same loan product.
This program may also work for you and that may be why those lenders are pointing you to it. The difference between the 203(k) and the Title I is the 203(k) can be used for an acquisition and home improvements or home improvements by themselves. Whereas the Title I is for home improvements only.
Remember all loan officers think of their pay checks first, so they may try to persuade you to refinance the entire house and the home improvements thus earning them a larger commission. My advice is to be persistent while looking for a lender who can work with you.
Now if you are about the purchase a house and make improvements, then the 203(k) would be the only program that will do this.
Hope you found this helpful and please pay it forward by sharing this website with others.
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