Title I Property Improvement Loans

How it works

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

What the money covers

The program can be used to finance:

• 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 that reduce the risk of death, personal injury, or property damage from fire in a health care facility.

Amounts and matching

• The interest rate is fixed, generally based on the most common market rate in the area, and it is negotiable between the lender and the borrower.
• Any loan or combination of outstanding balances of Title I loans over $7,500 must be secured against the subject property.
• No prepayment penalty is charged.

How to apply

Borrowers apply through HUD-approved lenders.

Timing and deadlines

The structure, including a manufactured home, must have been completed and occupied for at least 90 days before the loan application. No other deadline is stated.