Title One Correspondent FAQ’s
Question: Do I need to be an FHA approved lender?
Answer: Yes, in order to participate as an FHA Title I lender you must currently be approved as a Supervised or Non Supervised Title II lender.
Question: How do I obtain my Title I approval Authority?
Answer: Obtaining the additional authority to originate Title I loans is easy and is done through the FHA LEAP system by requesting the additional authority.
Question: What are the typical rates, terms, and basic requirements of the Title I loan?
Answer: Rates and Terms vary according to FICO and Term, the longer the term and lower the FICO the higher rate will be. A typical 20 year term with a 620 FICO would be 8.875%.
* No Equity or Appraisal required, Admirals Bank minimum FICO score for the primary borrower is 620.
* Maximum loan for a Single Family residence is $25K. Multi-Family allows for $12K per unit up to 5 units
Question: What are the advantages of offering the Title I loan program?
Answer: The advantages are many but vary depending on the type of lending institution that you are. For Banks it provides a great alternative to loans that may not qualify for portfolio HELOC’s as well as potential CRA Benefits. In addition all types of lenders can benefit by offering this program as a potential alternative to the FHA 203K limited program, an option for borrowers in need of home improvements with little to no equity as well as new home buyers who would like to remodel or repair their new home.