The Title I loan is for individuals requiring funds for home improvement, but who have little or no equity in their property or who live in a state where equity loans are very limited. If you have some equity in your home you may want to consider home refinancing for your improvements. Title I loans bear a higher interest rate than other loan types available.
Who Qualifies for a Home Improvement Loan?
To meet home improvement loan standards, borrowers must have at least a one-half owner interest in the property (or have a long-term lease) and be an acceptable credit risk.
A borrower's total fixed expenses cannot exceed 45 percent of gross income. This includes debt for such items as cars, houses, credit cards, and various types of other loans. It does not include such items as food and utilities.
Home improvement loans: Something potential borrowers should know
Funds accrued from a home improvement loan cannot be used for luxury items. They must be used for improvements that protect or improve the basic livability or utility of the property. Some examples include: structural additions/alterations, roofing, insulation, etc.
