FHA Title 1 Loans

FHA Title 1 Loans make it possible to fund home repairs and improvements with little or no equity in your home.

Improve Your Home Without Needing Equity

When your roof needs replacing, the kitchen is overdue for an update, or you're finally ready to finish your basement, the cost of home improvements shouldn't stand in your way. That's exactly what the FHA Title 1 Loan is designed for. Backed by the Federal Housing Administration, this loan helps homeowners finance repairs, improvements, and essential upgrades without relying on the equity in their home. Unlike a traditional home equity loan or HELOC, Title 1 loans are based on your ability to repay, not how much your home is worth, making them a great option for newer homeowners, or anyone whose equity hasn't caught up to their to do list.

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Loans Up To

$25,000¹

Flexible

Terms

Competitive

Fixed Rates

What Is an FHA Title 1 Loan?

An FHA Title 1 Loan is a government backed home improvement loan designed for homeowners who need to make repairs, renovations, or structural improvements, but may not qualify for traditional home equity financing.

Here's How It Works:

FHA Title 1 Loans are insured by the Federal Housing Administration (FHA) and supported by the U.S. Department of Housing and Urban Development (HUD)
Borrow up to $25,000 for a single-family home, or up to $12,000 per unit² for mult-ifamily properties
No down payment and no home equity required

Common Use Cases:

Roof repair or replacement
Kitchen and bathroom remodeling
Heating and cooling (HVAC) system installation or repair
Window and door replacement
Siding replacement
Structural repairs and foundation work
Energy efficiency improvements
Septic Systems
Outdoor structures (garages, sheds, and more)

Why Choose Shoreham Bank for Your FHA Title 1 Loan?

Finding a lender who actually offers FHA Title 1 Loans can be difficult. At Shoreham Bank, we're proud to be a nationwide FHA Title 1 lender, and we have a team that knows this program inside and out.

Here's what makes working with us different:

Our loan officers take the time to understand your project, your budget, and your goals
We are a nationwide lender serving homeowners across the country with this program
From your first conversation to your final payment, we keep things clear, honest, and straightforward

Frequently Asked Questions about FHA Title 1 Loans

What is an FHA Title 1 Loan?

An FHA Title 1 loan is a non-equity-based loan that is centered on helping people improve, repair or upgrade their home, or build an outdoor structure such as a garage or pole barn. An FHA Title 1 Loan is a fixed rate loan of up to $25,000 for a single-family home, and up to $12,000 per unit ($12,000 per unit, up to 5 units for a multi-family home). All FHA Title 1 Loans are insured by the Federal Housing Administration (FHA) and are backed by the U.S. Department of Housing and Urban Development (HUD).

How does an FHA Title 1 Loan work?

If eligible, you can borrow up to $25,000 on a single-family residence or $12,000 per unit for multi-families 2-5 units. Credit is pulled, and repayment options are provided, along with a short checklist of items needed to finalize the loan approval. Clients can receive their funds in as little as 7-10 days.

What are the requirements for an FHA Title 1 Loan?

While requirements may change depending on your application, there are three primary factors we look at are:

Use of Funds: Funds must be used for eligible home improvement projects only
Credit: We require a minimum credit score of 640
Debt to Income Ratio: HUD sets a maximum debt-to-income (DTI) ratio of 45%

Ready to Get Started?

Your home is worth investing in and you don't have to figure it out alone. Our experienced loan officers are here to answer your questions and walk you through your options. Call us at (866) 522-6755 to speak with a member of our team today.

Apply Now

Contact a Loan officer