The difference between Title 1 and Title 2 FHA lies in their respective focuses and loan types. Title 1 FHA loans are designed to help homeowners make improvements or repairs to their properties. These loans are typically used for non-structural repairs, such as repairing roofs, upgrading plumbing or electrical systems, or making accessibility modifications. On the other hand, Title 2 FHA loans pertain to a broader range of mortgage programs offered by the Federal Housing Administration (FHA). This includes traditional mortgages for purchasing or refinancing a home, as well as reverse mortgages for seniors and specialized programs like Energy Efficient Mortgages (EEMs) or Manufactured Home Loans.