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Weakness in the government-insured home-improvement sector continued in November, leaving the program barely in operation. The portfolio continued to runoff.
Title I mortgages endorsed by the Federal Housing Administration sank from 67 units during October to just 38 endorsements in November, according to data reported by the Department of Housing and Urban Development.
In the same month during 2021, FHA endorsed 50 Title I property improvement mortgages.
Maximum loan amounts on Title I mortgages secured by one-unit properties are $25,000. The minimum term is 6 months, and the maximum term is 20 years.
“HUD insures private lenders against loss on property improvement loans they make,” HUD states online about Title I loans. “The applicant must have the ability to repay the loan in regular monthly payments. Both large and small improvements can be financed.”
Insurance was in force on 11,188 Title I property improvement loans for $219 million as of November’s end, according to HUD’s date. FHA’s Title I book was diminished compared to 11,394 loans for $223 million a month earlier and 14,299 loans insured for $278 million as of Nov. 30, 2021.
