HUD
insures private lenders against loss on property improvement loans
they make. The applicant must have a good credit history and the
ability to repay the loan in regular monthly payments. Both large
and small improvements can be financed. Search HUD's list to find an
approved Title I lender in your state.
HUD does not lend money for property improvements.
Loans on single family homes may be used for alterations, repairs
and for site improvements. Loans on multifamily structures may be
used only for building alteration and repairs. Title I can be used
in connection with a 203k Rehabilitation Mortgage. For additional
information on that program, call (800) 767-7468 and request item
number 2571.
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.
More...
Who
To Contact: HUD's Homeownership Centers do not process
Title I loans. For more information, please call 1-800-767-7468
and request item number 2651, "Fixing Up your Home and How to Finance
It."
Maximum
Loan Amount:
-
Single
family house - $25,000.
-
Manufactured
house on permanent foundation - $17,500. (classified and taxed
as real estate)
-
Manufactured
house (classified as personal property) - $7,500.
-
Multifamily
structure - an average of $12,000 per living unit, up to a total
of $60,000.
Maximum
Loan Term:
-
Single
family house - 20 years.
-
Manufactured
house on permanent foundation - 15 years.
-
Manufactured
house (classified as personal property) - 12 years.
-
Multifamily
structure - 15 years.
Interest
Rate: The interest rate is a fixed rate that is generally
based on the most common market rate in the area. It is negotiable
between the lender and the borrower, and may vary between lenders.
Loan
Security: Any loan over $7,500 must be secured by a mortgage
or deed of trust on the property.
Loan
Prepayment: There is no prepayment penalty.
Minimum
Age of New Residential Structures: Structure must have
been completed and occupied for 90 days.
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