FHA Title I Home Improvement Loan

Federal Housing Administration

Available Home Repair

About This Program

FHA Title I Home Improvement Loan is available to homeowners in Chicago, IL.

FHA-insured loans for home improvements that protect or improve the livability of a property. No equity requirement for loans under $7,500. Available for single-family homes (up to $25,000) and multi-family properties (up to $60,000). Loan terms up to 20 years.

Insured loan, not a grant; interest rates set by lender

Official program page checked live on 2026-06-22.

Data last verified 2026-04-03. How we verify our data.

This is a national program. In Chicago, IL, you can stack it with local programs like these:

Key Details

  • FHA-insured home improvement loans
  • Up to $25,000 for single-family homes
  • No equity requirement under $7,500
  • Available through FHA-approved lenders
  • Loan terms up to 20 years

How to Apply

A grant-savvy contractor in Chicago, IL can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Chicago early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: HUD Form 56001 (Credit Application for Property Improvement Loan)

The FHA Title I program lets you borrow to repair or improve a home, with HUD insuring the loan a private lender makes. It funds alterations, repairs, and site improvements that protect or improve the home's basic livability. You apply through a HUD-approved Title I lender; loans above 7,500 dollars are secured by the home, and there is no prepayment penalty.

Steps to apply

  1. Find a HUD-approved Title I lender (a HUD-approved housing counselor at 800-569-4287 can help you locate one).
  2. Plan your improvement project and get contractor estimates.
  3. Complete the lender's credit application for a property improvement loan (HUD Form 56001).
  4. The lender underwrites and closes the loan, then funds the improvements.

Documents you will likely need

  • Proof you own and occupy the home.
  • Proof of income and your credit information (the lender pulls credit).
  • Contractor estimates and a description of the planned improvements.
  • The completed property improvement loan credit application (HUD Form 56001).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ongoing through FHA-approved lenders

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

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Frequently asked questions

How much can FHA Title I Home Improvement Loan provide in Chicago, IL?

Up to $25,000 (single-family).

Who qualifies for FHA Title I Home Improvement Loan in Chicago?

FHA Title I Home Improvement Loan is open to homeowners in Chicago, IL. It has no income limit.

How do I apply for FHA Title I Home Improvement Loan in Chicago, IL?

Apply directly with Federal Housing Administration using the official program link on this page or call 800-225-5342. There is no middleman and no fee.

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Find More Programs in Chicago, IL

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

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