If you are from any PRESIDENTAL DECLARED DISASTER Area You May Qualify-Even if you were a Renter if your housing is not repairable!
203(h) - Disaster Relief
You may have noticed a recent update on our FHA Loan Product Profile that specifies about the 203(h) - Disaster Relief program. The Housing and Urban Development (HUD), through the Federal Housing Authority (FHA), will insure mortgages for individuals or families in a Presidentially-declared disaster area whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary.What is 203(h)? Under the 203(h) program, FHA insures mortgages for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.Who is eligible for a Section 203(h) insured mortgage? Individuals are eligible for this program if their home -- whether they owned their home or rented-- is located in an area designated by the President as a disaster area, and their home was damaged to such an extent that reconstruction or replacement is necessary. These individuals must be able to qualify for a mortgage through FHA's underwriting guidelines, which are generally more lenient than in the private sector. How much down payment is required? No down payment is required under the Section 203(h) program. Potential homeowners are eligible for 100 percent financing of the mortgage. The borrower will pay some closing costs, but often the seller and the lender pay a portion of these costs.Added Benefit!!This program can be used anywhere in the U.S. and does not need to be in the original location of the residence. For example, victims of Hurricane Katrina in Louisiana can relocate to another state and use the 203(h) Disaster Relief program, based upon the mortgage loan limits for the location they are purchasing.
