I don't see a lot of information on this program or this lender on here so I wanted to provide some information for anyone that is looking into a home improvement loan and doesn't have enough equity for other products.
So I was looking for alternatives to funding my home improvement projects on the new house besides using my newly opened credit cards. I came across a program called FHA Title 1 Home Improvement Loan. It's unsecured up to $7,500 and secured as a second mortgage up to $25,000 - there is no appraisal or equity required in the house. The bank has another add on option that can take you up to $40,000 if you have good credit.
I filled out an application yesterday and got a call back a little bit ago. They called me back and said they could go to the full $25k and I just got the email saying I was pre-qualified up to the full $40k. The rates are much better than putting it on my credit cards and doing a debt shuffle which I didn't want to do.
If I did the $25k, it would be at 5.25% for 5 years. I could do 7-20 years and the rate would be 7.125% - 8.875% depending on the term. They must have pulled my mortgage scores because he told me it all looks good and they had a 705 score for me!!!! Wooooo hoooooo, my mortgage scores have been higher ever since my chapter 7.
I'm moving ahead with this, I like the fixed rate, the fixed term and there is no pre-payment penalty on it. Now to start scheduling some estimates!!!!!!!!
THANK YOU for posting this! I've been looking at options for getting my house fixed up to sell, and was looking at Admirals Bank, but couldn't find any info on the rates on these loans, other than they "aren't low." I don't think they sound bad at all, especially with the option for 20 years and no prepayment penalty!
Are you having to pay any closing costs?