HUD Home Improvement Loans

A HUD home improvement loan is an FHA-insured loan used for any type of home improvement or repair. HUD stands for the federal department of Housing and Urban Development. The loan is also referred to as a Title I loan, and is provided through a bank or alternative lender.

Who Qualifies for a HUD Home Improvement Loan

A Title I loan is for a person who needs to make improvements or repairs, but has limited equity in their home. The loan is insured by the FHA through the private lender to guard against possible default. The applicant's credit history and ability to make regular monthly payments will also determine the amount.

Benefits of a HUD Home Improvement Loan

A Title I loan has many benefits for the homeowner:

  • Improvements can make the home more livable and functional. The loan can also be used to purchase appliances such as dishwashers or ovens that are built into the home and not freestanding.
  • A dwelling can be made more accessible for a disabled person to allow for wheelchair access, wider doors, or ramps.
  • Energy conservation improvements or solar energy projects can be adapted.
  • The improvements can be made through the home owner's choice of contactor or performed by the homeowner. If the homeowner provided the labor, then cost of material can be financed.

HUD Home Improvement Loan Terms

HUD sets maximum amounts that a homeowner can borrow, with up to $25,000.00 for a single family home. Other amounts vary depending on the dwelling. HUD also has guidelines for loan terms. The lender will determine the fixed rate of the loan. For more information, visit or call a local FHA Home Improvement branch.