OVERVIEW: The U.S. Department of Housing and Urban Development provides funding to make it easier for consumers to obtain affordable home improvement loans. The HUD Property Improvement Loan Insurance (Title I) program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed-rate loans, for which lenders charge interest at market rates. HUD does not subsidize the interest rates, although some communities participate in local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders. Title I loans may be used to finance permanent property improvements that protect or improve the basic livability or utility of the property–including manufactured homes, single-family and multifamily homes, nonresidential structures, and the preservation of historic homes. The loans can also be used for fire safety equipment.
TIMETABLE: Ongoing.
APPLICATION PROCESS: Applications must be submitted to a Title I-approved lender.
FOR MORE INFORMATION: See the program’s homepage. Lenders may contact FHA’s Home Mortgage Insurance Division at (202) 708-2121 for information about how to participate in the Title I program.
TAGS: funding, other, home