Under the Title I program, approved lenders make loans from their own funds to eligible borrowers to finance home improvements, and HUD insures the lender against loss if the borrower defaults. Credit is granted based on the applicant's credit history and ability to repay the loan in regular monthly payments. This is one of HUD's most frequently used loan insurance products.
Title I home improvement loans are not government loans or grants, and are not low interest rate loans. HUD does not lend money nor regulate interest rates.
