What is needed to quailfy for Title One home improvement loan
by Maryann H
(Las Vegas Nevada)
My son is in the process of buying his first home here in Nevada. There are some upgrades that needs to be made. He wants to take a loan out of $15,000 for the improvements. Does he need a FHA mortgage loan to qualify for a FHA title one home improvement loan? What is the process to qualifying for this type of loan?
Thank you Maryann
Sorry for the delay in getting you this answer. Thank you for stopping by my website and asking your questions.
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Title One loans are very hard to find. Although they exists, few lenders want to do them because of the sheer amount of paperwork involved for such a small loan balance.
However, with that said, you mentioned your son is "buying" a home. So if he has not bought it yet, it may be easier to get a loan for the home improvements than trying to get a Title One loan by itself.
So, if your son has not yet applied for a mortgage, then he may want to look into the FHA 203k loan. This loan allows for the purchase and repairs of the home. You may want to have him take a look at my webpage here about the best fha home loans where he can find a link to some lenders at Lending Tree. Just ask for the FHA 203k loan when applying.
The other way to do it may be to buy the home with an FHA 203b loan (also explained on that page) and then apply for a Title One Loan at the same time.
Here is a link to the HUD.gov website regarding Title 1 Home Improvement Loans.