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What Is
a Title
I
Home
Improvement
Loan? |
Getting a loan can be
confusing. There
are so many products
that it’s hard for consumers
to know
which one is right for them. When
you’re improving your home’s value, you may
want to apply for a Title I
home improvement loan.
A Title I home
improvement loan allows lenders to loan you money from
their own funds while HUD insures the lender in case you
default on the loan. Your credit history will be
scrutinized so that they can gauge your ability to repay
the loan in monthly installments.
Title I loans are
not government loans or grants, nor are they low
interest loans. HUD itself is not lending you the
money. The lender will approve eligible projects
that protect or improve the property and contribute to
the living and utility basics.
You can even use a
Title I loan for manufactured homes, non-residential
structures, and even fire safety equipment. Most
Title I loans are used for structural improvements, such
as roofing, insulation, exterior and interior additions,
but also for heating and cooling systems.
This kind of loan
isn’t going to be approved for luxury items, such as a
swimming pool. Nor can they be used for any other
loan purposes such as debt consolidation.
Everything must go toward improving the home’s basic
functioning ability. It’s the perfect kind of loan
if you bought a “fixer-upper.”
Your interest rate
will be at market value and just like other loans, it is
negotiable at the lender’s discretion, so be sure to
shop around and compare prices! You will be
restricted to maximum loan amounts, however.
Single family
housing can get $25,000. Manufactured homes on
permanent foundation are approved for$17,500.
Manufactured homes that are mobile can qualify for
$5,000. And multifamily buildings can get $12,000
per unit up to $60,000.
Information contained herein is deemed accurate and correct, but
no warranty is implied or given. Please consult
a financial advisor for specific advice pertaining to
your particular situation. © 2004 Apex Personal
Loans Store. All Rights Reserved.
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