Where Should You Apply for an FHA Title 1 Loan?

To apply for FHA home improvement loans, also called Title 1 loans, individuals should seek out Title 1 lenders in their areas. By locating a Title 1 lender directly, you can cut out many steps to securing the ultimate financing.

Title 1 Loan Structure

Title 1 loans are issued by a private lending institution and guaranteed, or insured, by the FHA. This means the borrower must qualify or nearly qualify on his or her own for the loan directly from the lender. The FHA guarantee serves only to reinforce the contract with a promise of federal payment if the borrower defaults.

Title 1 Loan Lenders

You may seek a home improvement loan with any bank and attempt to have it guaranteed under the Title 1 loan program. However, this will require two sets of application forms, and changes may be needed in the loan structure after the FHA approves the debt. The easier route is to search the list of FHA-qualified lenders in your area and go directly to the source. These lenders have been approved because they follow the FHA's lending rules, and this means they can provide the loans with only one application. The lender will approve your loan and then file the FHA paperwork without your assistance.


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