What Repairs Will an FHA Title 1 Loan Cover?

FHA home improvement loans issued under Title 1 will cover improvements to make your property more livable or safer. This generally applies to old, neglected or otherwise under-managed properties in need of improvements to meet inspection requirements in your area.

Examples of Covered Costs

You may secure an FHA Title 1 loan to cover costs such as:

  • Fire safety changes including fire proofing, updating electrical outlets or installing fire and carbon monoxide detectors
  • Roofing updates that prevent a roof from collapse and/or leaking
  • Improvements in energy efficiency, including installing new appliances, new windows or solar panels
  • Removal of mold, asbestos or pests from the property in order to make it a healthier dwelling

Examples of Costs Outside Coverage

The Title 1 loan program is not designed to assist you in making general improvements to the property. For example, you cannot use the loan to update wall paint, change fixtures, redo your kitchen or get new carpeting. These "facelift" changes improve only the aesthetic value of the home. In order to meet Title 1 requirements, the changes must actually increase the home's livability based on recommendations by an inspector. Further, the improvements can be made only on single-family or multi-family residential homes occupied or owned by the individual seeking the loan.


For more information, read Title 1 FHA Home Improvement Loans Explained.