source:
  type: guide
  id: hud-4000-1-ii-b-allowable-loan-parameters
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-allowable-loan-parameters-full
  canonical_id: hud-4000-1-ii-b-allowable-loan-parameters-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (05/09/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
      Loan Parameters (05/09/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. Allowable Loan Parameters (05/09/2022) i. Maximum Loan Amounts
      The principal amount for a Property Improvement Loan must not exceed the actual
      cost of the Eligible Improvements in the project plus Financeable Fees and Charges,
      up to the Title I Property Improvement Nationwide Loan Limits. The Nationwide
      Loan Limits are based on the property type and loan purpose. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 2. Property Improvement
      Loan Program Handbook 4000.1 912 Last Revised: 11/26/2025 (A) Title I Property
      Improvement Nationwide Loan Limits A Title I Property Improvement Loan must
      not exceed the Nationwide Loan Limits published by HUD, including any Financeable
      Fees and Charges. The Title I Property Improvement Nationwide Loan Limits for
      the Property Improvement program are statutorily mandated. For Title I Property
      Improvement Loans, the loan amount is limited to the lesser of the cost of eligible
      improvements, plus any financeable fees, or the amount shown in the charts below
      for the property type or loan purpose. Single Family and Multifamily Residential
      Property Types Number of Units Secured Maximum Loan Amount Unsecured Maximum
      Loan Amount One $25,000 $7,500 Two $24,000 Three $36,000 Four $48,000 Five or
      more units $60,000 Manufactured Home classified as Real Property $25,090 Manufactured
      Home classified as Chattel or Personal Property $7,500 Lien is optional Other
      Property Types and Loan Purposes Type or Purpose Secured Maximum Loan Amount
      Unsecured Maximum Loan Amount Nonresidential Property $25,000 $7,500 Historic
      preservation for residential dwelling(s) Lesser of: $15,000 per Dwelling Unit;
      or $45,000. Fire Safety Equipment Loans $50,000 If the Borrower has more than
      one Loan, the combination of the outstanding balances on a particular Property
      must not exceed the largest of the maximum loan amount limits prescribed for
      the property type or loan purpose. (B) Required Investment The Borrower is not
      required to contribute funds to the property improvement project. All money
      to fund the eligible improvements and allowable fees may be derived from the
      proceeds of the Title I insured Loan, and other sources, as applicable. II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 2.
      Property Improvement Loan Program Handbook 4000.1 913 Last Revised: 11/26/2025
      (C) Minimum Equity The Borrower is not required to have equity in the Property.
      ii. Loan Term (A) Minimum Loan Term The minimum loan term for all property types
      and purposes is six months. (B) Maximum Loan Term (1) New Property Improvement
      Loan The maximum loan term for a new Title I Property Improvement Loan is based
      on property type and purpose. Single Family and Multifamily Property Types Number
      of Units Loan Term Maximum Minimum One 20 years and 32 Days 6 months Two Three
      Four Five or more units Manufactured Home classified as Real Property 15 years
      and 32 Days Manufactured Home classified as Chattel or Personal Property 12
      years and 32 Days Other Property Types and Loan Purposes Type or Purpose Maximum
      Loan Term Minimum Loan Term Nonresidential Property 20 years and 32 Days Historic
      Preservation for Residential Dwelling(s) 15 years and 32 Days 6 Months Fire
      Safety Equipment Loans for Health Care Facility 20 years and 32 Days (2) Refinance
      of an Existing Title I Property Improvement Loan A Property Improvement Loan
      may be refinanced for an extended period, in accordance with the following rules:
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      2. Property Improvement Loan Program Handbook 4000.1 914 Last Revised: 11/26/2025
      • the maximum term permitted for a Loan that refinances a Borrower’s existing
      insured Property Improvement Loan must not exceed the maximum term permitted
      for its property type or loan purpose; and • the total time period from the
      date of the original Loan to the final maturity of the refinanced Loan must
      not exceed the maximum term permitted for a new Loan plus 9 years and 11 months.
      This particular limitation applies to all property types and loan purposes.
      iii. Loan Insurance Premium FHA collects an annual insurance premium charge
      for eligible Loans originated under the FHA Title I Property Improvement Loan
      program. The Title I Property Improvement Loan program does not require the
      payment of an Upfront Insurance Premium (UFIP). (A) Annual Loan Insurance Premium
      The annual loan insurance premium is an obligation of the Lender. The Lender
      may pass the premium charge on to the Borrower, provided that such charges are
      fully disclosed. HUD collects the insurance premium in annual installments of
      1 percent of the original loan amount. The loan insurance premium must be paid
      for the full term of the Loan unless the Loan is prepaid in full or the Lender
      files a claim with FHA. (B) Passing Loan Insurance Premium to Borrower Lenders
      must disclose the loan insurance charges to be paid by the Borrower according
      to required laws, and RESPA and TILA as applicable. Additional or separate disclosure
      agreements for the fee is not required to be in the file.'
  judgment: false
