An FHA home improvement loan is one of the programs from the Federal Housing Administration. The Department of Housing and Urban Development (HUD) insures FHA improvement loans, but does not actually lend the money.
Instead, FHA home improvement loans are issued by approved lenders. The home improvement loans can be used to pay for permanent improvements to a dwelling. These improvements must upgrade the livability or utility of the dwelling. Eligible dwellings include single-family and multi-family homes, manufactured homes, nonresidential structures, and historic homes.
FHA home improvement loans can be used for purposes such as additions or alterations to the interior or exterior, including finishing, roofing, insulation, painting, furnaces, air conditioning, and other basic improvements. Items such as swimming pools or spas are considered luxuries, and are not covered by the program.
Funds from FHA home improvement loans can only be used for making alterations to the home, and may not be used to consolidate debt, or for other non-improvement purposes.
The interest rate on FHA home improvement loans is a fixed rate that is set by the lender. Therefore, as always, it is worth your while to compare rates and fees offered by different lenders.
There are maximum amounts for FHA home improvement loans, depending upon the type of dwelling. For a single family home, the maximum you can borrow is $25,000; for a manufactured home, the maximum is $17,500; for a mobile home, the amount is $5,000; and for a multi-family home, the maximum is $12,000 per unit (but no more than $60,000 total).
FHA home improvement loans also have limits on the term of the loan, depending again upon the type of dwelling. For a single family home or a multi-family home, the longest term for the loan is 20 years; for a manufactured home, the longest term is 15 years; and for a mobile home, the limit is 12 years.
FHA Home Improvement Loan Eligibility:
You are eligible for an FHA home improvement loan if you are the owner of the property, if you are leasing the property for at least six months beyond the end of the loan term, or if you are purchasing the property under a land contract.
To find an approved lender for FHA home improvement loans, please visit http://www.hud.gov/ll/code/llslcrit.html.
mortgage info | mortgage calculator | realtors | links | advertise | home | site map | contact
