This Is One Way Houston First Time Home Buyers Can Finance Their New Bathroom or Kitchen

If you have an emergency home repaired or in need of a new bathroom or kitchen, the FHA Title I loan may be a cheaper way for you to finance it, when compare to let’s say, using your credit card. With a Title I loan, you can borrow up to $25,000 to spend on projects. Let the remodeling begin!

 According to the U.S. Department of Housing and Urban Development, these loans may be used for any improvements that will make your home more livable and useful. For example, they can be used for:

• Dishwasher

• Refrigerators

• Freezers

• Ovens that are built into the house, not free-standing.

• Energy conserving improvements such as installing solar panels.

If you have a contractor, you can use the money to pay for contractor’s materials and labor. However, if you do the work yourself, only the cost of the materials may be financed.

The loan can cover architectural and engineering costs, building permit fees, title examination costs, appraisal fees, and inspection fees.

 Improvements for accessibility to a disabled person includes:

• Remodeling kitchen

• Baths for wheelchair access

• Lowering kitchen cabinets

• Installing wider doors

• Exterior ramps, etc.

 Luxury projects such as pools, and outdoor fireplace are not eligible for financing when using a Title I Loan. The good thing is you do not need to have an FHA mortgage to qualify for a Title I Loan, however you can only apply through an FHA-approved lender. Each lender may have their individual lending requirements that you will need to meet. Interest rate is usually similar to rates on FHA mortgages and is determined by the lender.

 Here Are a Few More Things You Need to Know About the Title I loan

·  You will need to negotiate the interest rate with your lender. FHA/HUD do not set the interest rate.

· The maximum loan amount for a Single Family property improvement loan is $25,000.

· The maximum loan term is 20 years and 32 days.

· You do not have to live in any particular area to apply for this loan.

· No red tape. Only the lender has to approve the loan.

· When the work is finished, you will need to provide a completion certificate to the lender.

· To obtain a loan, you only need to own the property or have a long-term lease on it; fill out a loan application that shows you are a good credit risk; and execute a note agreeing to repay the loan.

· Other than your signature, you may not need any other security for loans under $7,500.

· Don't need a cosigner

 So there you have it. Getting you the information you need to help you move forward. As always, thank you so much for stopping by. Until next time…Diana.

Source: U.S. Department of Housing and Urban Development