Posted on: 22nd Mar, 2007 12:12 pm
what is a title I loan? and what are the rates on it, I did not find information about it from my friends, kindly give some information, thansk
FHA insures loans from private lenders which are used for making improvements to the property which meet certain requirements. It is also called as Property Improvement Loan Insurance (Title I).
"what is a title I loan? and what are the rates on it, I did not find information about it from my friends, kindly give some information, thanks"
vladimir , this program insures loans which are used to finance light or moderate rehabilitation of property. Such loan can also be used for construction of non-residential buildings on the property.
vladimir , this program insures loans which are used to finance light or moderate rehabilitation of property. Such loan can also be used for construction of non-residential buildings on the property.
There are some other specifics about the loan, like maximum loan amount can be up to $25,000 and such loan can be insured for 20 yrs. on single or multi-family properties. "and what are the rates on it,"This type of loan can only be of fixed rate and the interest is charged as per market rates.
FHA provides a coverage of up to 90% of the loan amount against defaults by a borrower and an annual premium have to be paid by you which would be $1 per $100 of the loan amount. So, for a $10,000 loan the annual premium would be $100.
Miller
FHA provides a coverage of up to 90% of the loan amount against defaults by a borrower and an annual premium have to be paid by you which would be $1 per $100 of the loan amount. So, for a $10,000 loan the annual premium would be $100.
Miller
Hi Vladimir,
Let me tell you about the kind of improvements can be made using this loan.
Any permanent improvements to property which will protect or improve basic utility or livability of property will be eligible. The home can be single-family, multi-family, manufactured or a non-residential structure.
And you would be eligible if you are:
# The owner of the property which needs improvement;
# Someone who is purchasing property under a land installment contract or
# The person leasing the property*.
* The lease should extend at least six months beyond the date of loan repayment. Suppose the loan is to be repaid in 10 years then the period of lease should be for at least 10 years 6 months.
Let me tell you about the kind of improvements can be made using this loan.
Any permanent improvements to property which will protect or improve basic utility or livability of property will be eligible. The home can be single-family, multi-family, manufactured or a non-residential structure.
And you would be eligible if you are:
# The owner of the property which needs improvement;
# Someone who is purchasing property under a land installment contract or
# The person leasing the property*.
* The lease should extend at least six months beyond the date of loan repayment. Suppose the loan is to be repaid in 10 years then the period of lease should be for at least 10 years 6 months.
Title1 loans are FHA insured loans offered to borrowers for the purpose of home improvement - large and small. The borrowers needs to have good credit score and financial ability to qualify for the loan. The Title 1 loan can be used along with 203k Rehabilitation mortgage.
The maximum loan amount for different properties are:
The maximum loan amount for different properties are:
- $25,000 for single family home
- $17,500 for manufactured home on permanent foundation (considered as real property)
- $7500 for manufactured home classified as real property.
- $12000 per living unit for multifamily structure. The maximum amount is extended to $60,000 for a number of units.
which type of lender can give this type of title I loan
Hi Woodroffe,
Those lenders who have been approved by HUD for this Title I loan program are allowed to make loans covered by Title I insurance. Find approved lenders from here - http://www.hud.gov/ll/code/llslcrit.html
The loan can be directly given to borrower or in case the loan has been made through any dealer then the disbursement of funds is made jointly to borrower as well as the dealer.
But beware that some instances of corrupt dealers performing shoddy work and overcharging homeowners have been found by HUD, so you need to be cautious in selecting dealers conducting Title I repair work.
Also go through this HUD page on information about lender eligibility for offering Title I loans
( http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm )
Niicss
Those lenders who have been approved by HUD for this Title I loan program are allowed to make loans covered by Title I insurance. Find approved lenders from here - http://www.hud.gov/ll/code/llslcrit.html
The loan can be directly given to borrower or in case the loan has been made through any dealer then the disbursement of funds is made jointly to borrower as well as the dealer.
But beware that some instances of corrupt dealers performing shoddy work and overcharging homeowners have been found by HUD, so you need to be cautious in selecting dealers conducting Title I repair work.
Also go through this HUD page on information about lender eligibility for offering Title I loans
( http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm )
Niicss