FHA Title I and Title II Loan

Question: What is a Title I loan? What is the difference between a Title I and a Title II loan?

Answer: A Title I loan is a FHA-insured home improvement loan which can be used for the alteration, repair, or improvement of an existing single family structure; preservation of an historic residential structure listed or eligible to be listed on the National Register of Historic places; or alteration, repair or improvement of an existing manufactured home and/or mobile home classified as personal property or real estate. A Title I loan can also be used to finance the purchase of a new or used manufactured home on an installment contract. Title I home improvement loans are typically offered as 2nd mortgage loans and are available up to $25,000. Loans for purchase of a manufactured home are available up to $48,600 for the home only and $64,800 for the home and lot combined. A title II loan is a FHA-insured 1st mortgage loan that a borrower can use to help purchase a home as a primary residence. Title II loans are available under a number of programs, including the popular Section 203(b) program which many first-time buyers use to buy a new or existing one-to-four-family home; the Section 203(k) program which allows borrowers to purchase or refinance and rehabilitate their residence if the home is a least one year old; and the Section 234(c) program for borrowers interested in purchasing a condominium residence. For more information contact Amerinet Mortgage.

© 2008 Amerinet Mortgage
Site by Amerinet Mortgage Wylie
TX Mortgage Broker #50467
Phone: 972-442-1812
Toll Free Fax: 800-648-0573
1414 Eastedge Drive
Wylie, TX 75098

 

Disclaimer: Not every FHA approved lender has this program available for their clients.