Home Improvement Loan (Title I)
Loan Amounts, Lenders
Maximum Loan Amounts and Terms
- The maximum amount for a single family home
improvement loan for the alteration, repair or improvement
of an existing single family structure is $25,000 and the maximum
term is 20 years.
- Multifamily home
improvement loan amounts are no larger than $12,000
per family unit, not to exceed a total of $60,000 for the structure,
and the maximum term is 15 years..
- The maximum amount for home improvement loans for
the alteration, repair or improvement of a manufactured
(mobile) home that qualifies as real property is $17,500
and the maximum term is 15 years.
- The maximum amount for a home improvement loan for the
alteration, repair, or improvement of an existing manufactured
(mobile) home classified as Personal Property is $7,500
and the maximum term is 12 years.
- The maximum amount for a nonresidential home improvement
loan for the construction of a new nonresidential
structure, or the alteration, repair, or improvement of an
existing nonresidential structure is $25,000 and the maximum
term is 20 years.
These are fixed-rate loans, generally based on market interest
rates in the area. The interest rate is negotiable between the
lender and the borrower, and may vary between lenders. Some communities
participate in local housing rehabilitation programs that provide
reduced-rate property improvement loans through Title I lenders.
Any loan over $7,500 must be secured by a mortgage or deed of
trust on the property. There is no loan prepayment penalty. There
is a minimum age for residential homes: they must have been completed
and occupied for 90 days.
The Federal Housing Administration (FHA), part of the U.S. Department
of Housing and Urban Development (HUD), insures private lenders
against the risk of default for up to 90 percent of any single
loan. The annual premium for this insurance is $1 per $100 of the
amount advanced. Although this fee may be charged to the
borrower separately, it is sometimes covered by a higher interest
charge.
Title I Lenders and Applications
Only lenders approved by HUD specifically for
this program can make loans covered by Title I insurance.
Title I loans can be disbursed directly to the borrower or, if
the loan is made through a dealer, the disbursement will be made
jointly to the dealer and the borrower.
A property owner may apply at any of the Title
I approved home improvement lenders (or
find one by calling toll-free 1-800-767-7468, TTY 1-800-877-8339),
which may include a bank, mortgage company, savings and loan association,
or credit union.
While most home improvement lenders and dealers / contractors
use this program responsibly, you should use caution in choosing
and supervising home repair dealers or contractors conducting Title
I repair or renovation work. Complaints about contractor fraud
under the Title I program can be made by calling HUD toll-free
at 1-800-569-4287.
The information provided in this website is
not legal advice and should not be interpreted as legal advice.
This website is intended to provide a basic understanding of this
information in summary form. This information may not be comprehensive,
is subject to change, and may not apply to all individual circumstances.
Any information received here should be confirmed with the appropriate
government agencies or with an attorney, particularly as it relates
to your individual circumstances. Your use of this website indicates
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