FHA Title 1 Loan
What is an FHA Title 1 Loan?
Why Shoreham Bank?
Need More Funding?
FHA Title 1 Loan FAQs
An FHA Title 1 loan is a non-equity based loan that is centered on helping people improve, repair or upgrade their home, or build an outdoor structure such as a garage or hobby shop. An FHA Title 1 Loan is a fixed rate loan of up to $25,000 for a single-family home, and up to $12,000 per unit ($12,000 Per unit, up to 5 units for a multi-family home). All FHA Title 1 Loans are insured by the Federal Housing Association (FHA) and are backed by the U.S. Department of Housing and Urban Development (HUD).
If eligible, you can borrow up to $25,000 on a single-family residence or $12,000 per unit for multi-families 2-5 units. Credit is pulled, and repayment options are provided, along with a short checklist of items needed to finalize the loan approval. Folks can receive their funds in as little as 7-10 days.
Most improvements are eligible if they are permanent to the home. Examples include windows, roofing, siding, garage, kitchen, basement, bathrooms, pole barns. Reach out to one of our Loan Officers to see if your project is eligible!
While requirements may change depending on your application, 3 primary factors we look at are:
- Property ownership. You must have occupied the residential property for at least 90 days.
- Credit. There is credit score requirements.
- Debt to Income Ratio. HUD sets a maximum debt-to-income (DTI) ratio of 45%.
Get in touch with one of our experienced loan officers today to see if our FHA Title 1 loans are right for you!