HUD (U.S.Department of Housing and Urban Development) insures Minnesota banks against loss on property improvement loans they make. You, the applicant must have a good credit history and the ability to repay the loan in regular monthly payments. HUD doesn't lend money for property improvements they insure the loans banks make.
The FHA (Federal Housing Administration) provides the mortgage insurance on loans made by FHA-approved lenders. FHA mortgage insurance provides lenders with protection against loss as a result of homeowners defaulting on their loans.
The answer is both! Congress created the Federal Housing Administration (FHA) in 1934. The FHA became part of the Department of Housing and Urban Development (HUD) Office of Housing in 1965.
This special government insured program is designed to offer new home owners and those with little or no equity in their homes an opportunity to finance construction projects like garages, needed repairs and all types of Home Improvements.
If you own a home, it doesn’t matter how much or how little equity you have in it. The FHA Title-One Home Improvement program allows you to finance your project without any equity or appraisal.
Our Banking partner is one of the largest originators of Title-One Home Improvement Loans in the country. Their professional staff of loan officers are trained to provide prompt and personalized service. We’ll process your loan quickly and get the cash you need to start your project right away.
Q. Can we use the FHA Title-One Loan for any Home Improvement?
A. Just about. Out-and-out luxuries (like a built-in swimming pool) aren’t allowed. But just about anything else is.
A. Up to $25,000 for a one family house.
Q. Is this FHA Title-One Home Improvement loan tax-deductible?
A. Current tax law treats this loan just like a home mortgage loan. Interest charges may be 100% tax-deductible (consult your tax adviser)
A. No. You get all your money before you start the work.