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HUD   >   Programs of HUD   >   Property Improvement Loan Insurance (Title I)
Property Improvement Loan Insurance (Title I)

Federal insurance of loans to finance property improvements.

Nature of Program: HUD insures loans to finance improvements, alterations, and repairs of individual homes, apartment buildings, and nonresidential structures, as well as new construction of nonresidential buildings. Loans on single family homes (except manufactured homes) and nonresidential structures may be for up to $25,000 and may extend to 20 years. Loans on apartment buildings may be as high as $12,000 per unit, but the total for the building cannot exceed $60,000, and the loan term cannot exceed 20 years. A loan on a manufactured home that is classified as real property may be for up to $17,500 with a maximum loan term of 15 years. Loans on other manufactured homes are limited to $7,500 and a maxi¬mum term of 12 years. A property improvement loan may be a loan from the lender to the borrower or a retail sales installment contract (purchased by a lender) between the borrower and the contractor or dealer providing the materials or services.

Loans over $7,500 must be secured by a recorded mortgage or deed of trust on the improved property.

Applicant Eligibility: Any person who is able to make loan payments and has at least a 50 percent ownership in the property to be improved.

Legal Authority: Section 2 of Title I of the National Housing Act (12 U.S.C. 1703). Regulations are at 24 CFR part 201.

Administering Office: Assistant Secretary for Housing-Federal Housing Commissioner, U.S. Department of Housing and Urban Development, Washington, DC 20410-8000.

Information Sources: Administering office. On the Web

Current Status: Active.