Property Improvement Loan Insurance is designed to encourage homeowners to make improvements to their properties by providing insurance to lenders that issue loans.
Property Improvement Loan Insurance program provides insurance to approved lenders who make loans to homeowners. The insurance protects the lender against loss if the borrower defaults on the loan.
Eligible borrowers include, the owner of the property to be improved, a buyer under a land installment contract, or the person leasing the property.
Property Improvement Loan Insurance can be used for repairs, renovations, and additions that improve the safety, livability, or energy efficiency of the property.
The maximum loan amount for PILI is $25,000 for a single-family home and for a multi-family property up to a $60,000.
The repayment term for a PILI loan can vary depending on the lender, but can be up to 20 years. Interest rates for PILI loans can vary depending on the lender.