FHA Loans

You can borrow $25,000 or less for specific improvements to your home (sorry, no swimming pool) with an FHA Title I loan. FHA-insured Title I loans are fixed-rate and can be obtained through contractors or from banks or other lenders. (Lenders inspect finished projects when you borrow more than $7,500. On all loans, you'll be asked to certify that the completed work qualifies as a home improvement.) Loan terms run from six months to as long as 20 years.

If you borrow less than $7,500, the loan won't be secured by a lien on your home. But interest payments on such unsecured personal loans are not deductible as mortgage interest for federal tax purposes. Larger loans are secured by your home and interest is deductible up to the value of the home.

To learn more about FHA Title I loans for home improvement, call HUD at 800-767-7468 and leave your name and address on the recording. HUD staff will send you a brochure describing the program and a list of lenders operating in your area. Or check online at: www.hud.gov/fha/sfh/title/sfixhs.html.

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