Title I Property Improvement Loan Program

How it works

HUD insures private lenders against loss on property improvement loans they make. The official program page says the improvements must substantially protect or improve the basic livability or utility of the property.

What the money covers

The page says Title I property improvement loans can be used for:

• Large and small improvements.
• Alterations, repairs, and site improvements on single-family homes.
• Alterations, repairs, and improvements of multifamily structures.
• Conversion of an existing multifamily structure used or to be used as an apartment or two- to four-unit dwelling.
• Construction of a new exclusively nonresidential structure.
• Alteration, repair, or improvement of existing manufactured homes classified as real property or personal property.
• Restoration or rehabilitation of an historic residential structure.
• Purchase and installation of approved devices or construction features to reduce fire risk in a health care facility.

Amounts and matching

HUD’s page says any loan or combination of outstanding balances of Title I loans over $7,500 must be secured against the subject property. The page also says the interest rate is fixed and generally based on the most common market rate in the area, and that there is no prepayment penalty.

How to apply

Borrowers work through HUD-approved lenders. The page says the structure must have been completed and occupied for at least 90 days before the loan application.

Timing and deadlines

No program deadline is stated on the page.