FHA Title 1 Loans For Home Renovations. A title 1 fha loan is a loan that is offered by the FHA for the purpose of home renovations. What makes the Title 1 Loan different from other home improvement type loans is the ability to secure one without any equity.
A property owner may apply at any lender (bank, mortgage company, savings and loan association, credit union) that is approved to make Title I loans. Beware of deceptive home improvement contractors. Who To Contact: HUD’s Homeownership Centers do not process Title I loans. For more information, please call (800) 767-7468 and request item number.
Under the Title I program, approved lenders make loans from their own funds to eligible borrowers to finance home improvements, and HUD insures the lender against loss if the borrower defaults. Credit is granted based on the applicant’s credit history and ability to repay the loan in regular monthly payments.
FHA Title 1 loans fall under the Department of Housing and Urban Development’s Title 1 Property Improvement Loan Insurance program. lenders pay the premium directly to HUD. You can roll the premium into the principal loan balance, but doing so can result in a higher interest rate.One of the best-known loans for home improvements, Fannie Mae's HomeStyle Renovation loan, allows borrowers to either buy a place that.