HUD Title I Property Improvement Loans Explained

How a Title I Loan Works

Under HUD’s Title I program, an approved lender makes a home repair loan. FHA insurance helps protect that lender if a borrower fails to pay. It does not pay your bills or forgive your debt.

Title I is not the FHA 203(k) mortgage. A 203(k) loan is often used when you buy or refinance a home and plan repairs. See our FHA 203(k) comparison if you need that kind of loan.

The $75,000 Law and the Loan Limits Lenders Use

Two things matter. One is what Congress changed. The other is what lenders can offer today.

What the new law says

Section 303 of the 2026 housing law changed the National Housing Act on July 11, 2026. It sets a $75,000 ceiling for repair loans on an existing single-family home, including a manufactured home. It raises the limit for homes with more than one unit too. The law lists $150,000 or $37,500 per unit, subject to its rules.

The law gives HUD added power to set loan terms, with a term cap of 30 years. It also calls for a new way to update limits each year. That does not mean every lender now offers a 30-year loan or the full new limit.

What HUD still publishes

As checked on October 9, 2026, 24 CFR 201.10 still lists older repair loan amounts. HUD’s public program pages also still describe those older amounts. We did not find a clear new HUD lender notice that makes the higher amount ready for every lender.

HUD’s current FHA handbook page is another place to check for updates. A loan also cannot be larger than approved repair costs plus allowed charges. An old Title I balance on the property may reduce the amount left to borrow.

For a firm answer on the new limit, ask the FHA Resource Center whether HUD has issued lender steps for Section 303. Call 1-800-225-5342, Monday through Friday, 8:00 AM to 8:00 PM Eastern, except federal holidays. Ask the lender which HUD notice and loan limit it uses.

Who May Qualify for a Title I Repair Loan?

A lender checks your income, debts, credit, home rights, and repair plan. HUD insurance does not force any lender to approve you.

• Property rights: You need an ownership, lease, or other legal interest that meets the program rules. Ask how the lender handles shared titles and land contracts.
• Existing home: HUD says the home must have been built and lived in for at least 90 days before you apply. This need not be your own time in the home.
• Repair purpose: The work must protect or improve the home’s basic use, safety, or condition.
• Income: There is no set federal low-income cap, but you must show that you can repay the loan.
• Residency status: Under HUD Title I rules from 2025, U.S. citizens and lawful permanent residents may qualify. Citizens of Micronesia, the Marshall Islands, and Palau may also qualify. Other non-permanent residents do not qualify under these rules.
• Credit: HUD does not list one minimum credit score for every Title I property repair loan. Lenders still review credit and may apply stricter rules.
• No sure approval: An FHA-approved lender may reject an application or may not offer Title I at all.

Lenders may count some types of pay in different ways. If you get a pension, disability pay, or other benefits, ask how to prove it. A HUD housing counselor can help you build a budget and review loan choices. Call 1-800-569-4287 to find one.

What Home Repairs Can the Loan Pay For?

The work must be approved before the lender pays for it. Common uses may include:

• Fixing or replacing a leaking roof
• Repairing heat, cooling, water, or sewer lines
• Fixing unsafe wiring, steps, floors, or walls
• Making doors, ramps, and bathrooms easier to use
• Repairing windows, insulation, or storm damage
• Making needed changes to the home’s structure

The lender decides if the work meets program rules. Work that is only for looks may not pass. An added dwelling unit is named in the new law, but its HUD loan rules and lender access need separate checks. Do not assume a new unit is already eligible through your lender.

HUD’s home repair guide says a contractor project can cover labor and materials. For work you do yourself, a Title I loan may cover materials, but not the value of your own labor.

For a manufactured home, ask if the home is real property or personal property. The title, lot lease, and state rules may matter. See our manufactured home repair guide for other types of help.

How to Find a Lender and Apply

You cannot get a Title I property improvement loan straight from HUD. Apply through a lender that is approved for, and still makes, these loans.

HUD changed the Title I loan forms in 2025. Lenders now use a common home loan form and a Title I add-on. Your lender should give you its current forms. You do not need to download old HUD forms on your own.

Documents to get ready

• Photo ID and proof of your home interest
• Pay stubs, benefit letters, or pension records
• Bank statements and a list of monthly debts
• Mortgage, property tax, and insurance records
• Written bids, plans, and needed permits
• Photos or notices that show unsafe conditions

Our repair document checklist can help you sort your files. Keep copies. Send private records only to the lender through a safe system.

What happens after approval?

Read your loan papers. Check the rate, payment date, total debt, fees, repair plan, and lien. Ask when the lender will pay the contractor, who checks the work, and how to report a poor job.

HUD’s older Title I rules include a work completion process and some on-site checks. Ask the lender for its current steps and deadlines. Never sign a blank form or say the job is done when work is missing.

Costs, Terms, and Risk to Your Home

The rate must be fixed, but HUD does not set one low rate for all borrowers. Ask about lender fees, title fees, filing fees, insurance charges, and any money due at closing.

The older HUD rules list a term of up to 20 years and 32 days for many single-family repair loans. They list shorter terms for some manufactured home work. The new law lets HUD set terms up to 30 years, but a longer term is not a confirmed lender option. Ask what term the lender can actually offer.

HUD says Title I loans have no prepayment penalty. You may still pay much more in interest if you stretch a loan over many years. Compare the APR and total paid, not just the monthly bill. The CFPB loan cost guide helps explain how to read loan charges.

Ask which loan disclosures apply to your deal.

When a lien is required

HUD’s posted Title I rules say a repair loan over $7,500, or Title I balances above that amount on the same property, generally needs a lien. A lien is a legal claim on the home. It can affect a home sale, a new mortgage, or what happens if you fail to pay.

Read our home repair lien guide before you sign. Make sure the lender tells you if the loan is secured, where the lien ranks, and what happens if you miss payments.

Also ask what happens if the contractor stops work, the final cost rises, or the lender sells your loan to another firm. Get answers in writing and save all bills and receipts.

What if Title I Is Not Available or Costs Too Much?

First, try programs that may not put a new debt on your home. Many depend on where you live, income, age, or the kind of repair you need.

Rural owners can read our USDA Section 504 guide and check the official USDA program. Grants have age, income, and use rules. The grant part is not open to every rural owner.

Ask your city or county about housing repair funds. Our local repair program guide explains how these plans work. For insulation and energy work, check the federal weatherization program. That service will not pay for every roof or home repair.

If you cannot find help, use our local repair search guide. You can also ask 211, a housing counselor, or a community action agency about nearby help.

If a lender says no

Ask why. Under federal rules, a lender must explain the main reasons for a credit denial or tell you how to ask for them. The CFPB denial guide explains how this works.

Check for mistakes in your credit file. Ask if the repair plan can be made smaller. Another lender may use different rules, but check that it truly offers Title I before you apply again.