What is the difference between an fha title 1 loan and an fha 203k loan?
FHA 203 (k) is a rehabilitation loan. It used to renovate properties within the HUD guidelines. Either a Streamlined k which has no structural issues on the property to be repaired and a limit of $35,000 including costs and fees, or a Full or Standard 203k which has no limit on the repairs up to the loan limit in that county less the purchase price on a sale, or the existing debt on a refinance. This loan is always a first loan. The FHA Title I loan is also for repairs. It used to be that it was called a "signature loan" as you could get it in about a week and it was very easy to qualify. As long as the underlying loan or first loan was longer than the term you were asking for on the Title I loan it was pretty much a done deal. Today there is a little more credit checking going on. This loan was originally to repair a roof if it started leaking in the rainy season to provide quick repair money for anyone with a mortgage in place. Title I loans have a $25,000 limit for a single family home or $12,000 for each unit up to 5 or $60,000 for a five unit building. Yes, a duplex would get less money than a single family residence.
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