Loans may be utilized for financing permanent home improvements that conserve or appreciates the basic livability and utility of the property be it then manufactured homes, single-family and multifamily homes, nonresidential structures, or the preservation of historic homes. The loans can also be utilized for the installation of fire safety equipment.

A large number of loans are for items that provide structural additions and alterations, exterior and interior finishing, roofing, insulation, and heating and cooling systems. The funds cannot be utilized for "luxury" items, such as swimming pools or hot tubs. Debt consolidation, cash-out, or any of the non-home related expenses cannot be met through the funds.

Home Improvement loans for single family houses may be utilized for alterations, repairs and for improvement of the site. Loans on multifamily structures may be utilized only for altering or repairing a building. The Structure must be completed and occupied for 90 days.

Interest Rates

The interest rate is a fixed rate that is ascertained by the prevailing market rate at the time when the loan is made. The interest rate is negotiable and has variations between lenders.

Some special communities actively participate in the local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders.

Maximum Loan Amount

For a Single family house the maximum limit for a loan is $25,000
For a Manufactured home on permanent foundation that qualifies as real property it is $17,500
For a Manufactured (mobile) home classified as personal property $5,000
Multifamily building $12,000 per unit with a total of $60,000

Maximum Loan Term

For a Single family house and multifamily structure it is 20 years
For a Manufactured home on permanent foundation that qualifies as real property it is 15 years
For a Manufactured (mobile) home classified as personal property it is 12 years

Prepayment Penalty

There is no prepayment penalty applicable.

Eligibility Criterions

The important criterion for a home improvement loan is that the borrower must be the owner of the property to be improved. The person leasing the property (provided that the lease will extend at least 6 months beyond the date when the loan must be repaid), or someone purchasing the property under a land installment contract.

The owner must have an equity equal to the loan amount if the property is not occupied by him if the loan amount is over $15,000.

A loan larger than $7,500 has to be secured by a mortgage or deed of trust on the property.

How to Apply For A Title I Home Improvement Loan

The owner of the property may apply for a Title I home improvement loan at any lender such as, a bank, mortgage company, savings and loan association, or credit union authorized for home improvement loans.