For homeowners with large amounts of debt, finding the resources to make needed renovations can be difficult. Luckily, home improvement loans can offer relief to borrowers looking to invest in their home and or make costly repairs.
Certain mortgage products like The Department of Housing and Urban Development's FHA loan offer the ability to put financing from the loan towards home improvement costs—while also offering low interest rates and down payments to those who qualify. FHA Title I loans are available to owner-occupants and investors offering up to $25,000 towards repairing or improving their property. This includes up to $15,000 which can be obtained regardless of home value and no security required on loans of $7,500 or less.
To obtain the loan, the borrower needs to own the property or hold a long-term lease to it. From there, qualifications are relatively lenient and total debt (including present mortgage debts) may not exceed 45 percent of monthly income. Title I loans may be used for any improvements that "will make your home basically more livable and useful.