Are you a first-time home buyer? Or, are you working with a limited budget but want to create the St George home of your dreams? You might want to look at older homes that need some fixing up in order to stay within your means. Worried about how much this may cost in addition to your mortgage? Learn how to finance St George home improvements without breaking the bank utilizing a Title I loan.
Financing St George Home Improvements with a Title I Loan
What is a Title I Home Improvement Loan?
Title I loans allow homeowners to borrow money to finance any home improvement that makes the home more livable or useful. For example, upgrading your appliances to newer, more energy-efficient models, adding solar panels, or reconfiguring hallways, bathrooms, and kitchens to be more handicapped accessible. They use the word “improvements” pretty liberally when it comes to Title I loans. However, these loans cannot be used for swimming pools or any other “luxury” upgrade. And you cannot use it to pay for work that has already been completed.
Title I Loan Terms
Terms for this fixed-rate loan run a maximum of 20 years on a single or multi-family home. For manufactured homes, terms max out at 15 years for a home on a permanent foundation and 12 for one without. Single-family homeowners may borrow up to $25,000 while multi-family homes allow up to $12,000 per unit (max of $60,000). Manufactured homes on a foundation cap out at $25,090 while those without a foundation can only borrow up to $7500. All that is required is that you own the St George home, have lived there for at least 90 days, specify that the money will be used for specific work to be done to the home, and have less than a 45% debt-to-income ratio. No minimum credit score, minimum income, or equity required.
Advantages of a Title I Loan
With a Title I loan, you can either do the work yourself or hire a contractor. Although, keep in mind that only the cost of materials used when you DIY it can be financed through Title I, not your time. With a professional contractor, all of it can be financed under Title I. With a $7500 or less loan, you won’t need security or a cosigner to back you up. This loan easily piggybacks onto your mortgage loan. Even so, only the lender needs to approve your loan, thus reducing a lot of red tape. When all work is done, just show the lender your completion certificate.
Call the HUD offices at 800-767-7468 to find an FHA-approved Title I lender in your area. When you’re ready to start looking for a St George home of your own, feel free to contact me.
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2243 W Sunbrook #134, St George, UT