When calamity hits, it ushers in a period of unpredictability. After months of worrying about the welfare of your loved ones, it is finally time to put your life back together. The most pressing issue right now is finding stable, long-term housing. Do mortgage lenders view those who are just starting out as high risk, to be avoided at all costs, or do they issue loans to them anyway?
SteveKnowsLoans collaborates with Plaza Home Mortgage to assist you in obtaining a mortgage loan to rebuild your home after a natural disaster. In the event of a Presidentially Declared Major Disaster, we can utilize the FHA 203(h) program to aid people in need.
Is There Such a Thing as a Major Disaster Area Declared by the President?
A Presidentially Declared Major Disaster Area (PDMDA) is a region that has been severely impacted by either natural or human-caused disasters. Restoration work in a PDMDA can qualify for federal financing. A PDMDA area is one that has experienced a significant disaster, such as a hurricane, tornado, flood, earthquake, or wildfire.
What You Need to Know About the FHA 203(h) Program
Mortgages are available to survivors living in PDMDAs through the FHA’s 203(h) program. Rebuild or buy a new home with the help of this program if yours was damaged or destroyed by a calamity that meets the program’s criteria. The FHA 203(b) and 203(k) mortgage programs, which also allow for major repairs, are often used in tandem with this scheme.
Can I Participate in the FHA 203(h) Program?
Loans from the Federal Housing Administration’s 203(h) program are available to the following populations in PDMDAs:
- U.S. nationals
- Legally residing non-citizens
- Visitors and temporary residents
- recipients of the Deferred Action for Childhood Arrivals (DACA) program
- Collateral from non-occupants
The FHA’s 203(h) Program Has New Eligibility Requirements
Borrowers also need to meet a few other criteria in order to qualify for a loan, on top of those already listed. Telling the tale…
The minimum credit score that will be accepted from borrowers is 550.
Borrowers whose primary house was damaged or destroyed must apply for the program no later than one year after the major disaster declaration.
The FHA 203(h) program covers both detached and attached single-family houses as well as PUDs and FHA-approved condominiums.
Gains from the FHA 203(h) Program
Homeowners who have fallen on hard times can find salvation in the FHA 203(h) mortgage. Some of the advantages of this program include:
- The entire cost of the new property can be financed by the borrower. There is 0% down payment option available.
- Combining this with a 203(k) loan means adhering to the 203(k) loan’s maximum LTV.
- The borrower is given considerable leeway in how they prove their income, credit, and assets with this mortgage.
- Housing payment histories and liabilities associated with the damaged or destroyed home can be taken into consideration with a degree of leeway.
- A new house purchase or rebuilding project can be funded by this lending scheme. They can leave the PDMDA if they so want.
- The age of the property being refinanced does not matter if it has been destroyed or damaged.
The FHA 203(h) program does not cover what kinds of properties?
Unfortunately, not all properties qualify for FHA 203(h) financing. These are the ones that do not meet the requirements:
- buildings with two to four units
- Mobile and manufactured dwellings
- Properties for commercial use
- Co-ops
- Condotels
- Geothermal dwellings
- Dome-shaped geodesic structures
- Condominiums with no warranty
- Timeshares
- Full-time agricultural enterprises
- Please get in touch if you own one of these in a PDMDA and would like to discuss your options.
Reach Out to Us Today!
There’s no place like home to recover after a loss. Following a natural or man-made tragedy, SteveKnowsLoans and Plaza Home Mortgage are here to assist you in rebuilding your life. We collaborate to provide lending programs that allow our clients the stability of home ownership. If you’re interested in the FHA 203(h) program, please get in touch with us.
Please get in touch with one of our lending advisors for further details.
Call Steven Jackson at 813-616-9411 now!
