If you don’t find that either of the 203(k) programs are offering what you need, you may still find other options through the FHA and HUD. One such loan is the title 1 property Improvement Loan. The Title 1 is something like the standard 203(k), without the addition of the mortgage rolled in.
With 203(k) loans, you will probably be required to place a down payment and have reserves equal to a portion of the total loan amount. For more information about these HUD programs, see Title 1.
· Getting a Title 1 loan. The FHA (Federal Housing Administration) does not originate these loans directly. Rates and closing costs may vary among lenders. According to the Department of Housing and Urban Development, homeowners took out 5,548 Title 1 home improvement loans.