Financing home improvements just got easier.
Interested in making renovations, but don't have enough equity to qualify for a traditional home equity loan? An FHA Title 1 loan from BankFive may be the answer! Backed by the Federal Housing Administration, these loans help eligible borrowers in Massachusetts and Rhode Island finance the improvements and repairs they need to make their homes more livable.
The ins and outs of FHA Title 1 loans:
- Funds must be used to make home improvements or repairs that will "improve the basic livability or utility of the property"
- May be used for select installed appliances such as refrigerators, dishwashers and ovens
- May be used for accessibility repairs or remodeling such as ramps, doors and bathroom enhancements to accommodate wheelchairs
- Competitive, fixed interest rates
- More lenient credit history requirements than traditional mortgage products
- Home must have been occupied for at least 90 days
- No pre-payment penalties
- Mortgage insurance is required
- Loan amounts over $7,500 must be secured by a mortgage or deed of trust on the property
- Borrow up to $25,000 for a single-family home
- Borrow up to $12,000 per unit for a multi-family home (up to $60,000)