FHA Loans-Home Improvement Mortgage
The FHA has several loans that are specific for home improvement. The most popular of these FHA loans is the Title I program. This program is designed for consumers to easily obtain FHA home improvement loans with little or no equity in their property. This is one of the few FHA Loan programs that allow someone to obtain a loan for a property that exceeds the appraised value of that property. Title 1 program is only available with fixed rate FHA Loans.
The Title I program only covers financing of light to moderate renovation of a real estate and non-residential construction on that said property. This program offers loans for a maximum of 20 years on all single to multifamily unit properties. Through this FHA loans program, the loan amount is capped at $25,000 for single family structures and non-residential. For multi-family units, it allows for up to $12,000 per each additional dwelling unit and cannot exceed 60,000.
The eligibility for this program extends well beyond just property owners. Individuals renting or leasing the property are eligible to qualify for this program as well. You just need to make sure that your lease extends for a minimum of 6 months beyond the repayment date. This FHA Loan program can also be used by someone who is purchasing the real estate under a land contract.
If you have any other question about FHA Title I qualification, or you would like to apply today, please let us at FHA Loan Lending help you remodel your dream home!
