FHA Mortgage Option For Homeowners That Are Disaster Victims

By
Real Estate Mortgage Broker with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

Several Homeowners in the Northeast have lost their home because of Hurricane Sandy, and are in need of assistance.  So this weekend I searched through Mortgage Program Guidelines to see if there were any programs available to assist these Homeowners in obtaining a new mortgage. 

As I searched the FHA Guidelines I came across Section 203(h) of the FHA Guidelines which addresses "Disaster Victims".  Section 203(h) provides FHA Mortgage Option For Homeowners That Are Disaster Victims, if a Homeowner lost their home because of a natural disaster, and the President has declared the area that they live in a disaster area.  If the Homeowner meets those conditions, they can apply for a new mortgage under the Section 203(h) Mortgage Program for Disaster Victims.

Under Section 203(h) the Borrower's previous home must have been destroyed or damage to such an extent that rebuilding or purchasing a new home is necessary.  Section 203(h) not only applies to Homeowners, but also to renters that were impacted by the lost of the property.

In order to apply for a new Mortgage under Section 203(h) a Homeowner or Renter must provide the following proof:

  • Proof of residency:
    • Valid drivers license
    • voter registration card, or
    • Utility bill
  • Proof of destruction:
    • Insurance Report
    • Inspection Report by an independent Inspector or Government Agency, or
    • Photograph as evidence that the property was destroyed or damaged to the point of that it does not make sense to rebuild it.

Mortgages under Section 203(h) are only available for the following properties:

  • One Unit Detached Properties
  • Approved Condominium Projects

NOTE:  Multi-Family properties are not eligible.

Mortgages under Section 203(h) are:

  • Eligible for 100% financing, so there is no downpayment required.
  • Lenders can exclude the present mortgage payment from the Borrower's Debt-To-Income Ratios if the Borrower can show:
    • That the property was insured by a sufficient amount to pay off the remaining mortgage balance of the damaged home.
    • The Borrower is working with the Lender servicing the property to address the Borrower's mortgage obligation.

So there is HOPE for Homeowners that lost their home because of Hurricane Sandy, as well as other Homeowners that are victims of natural disasters.  No Homeowner wants to lose their home, but it is good to know that FHA Mortgage Option For Homeowners That Are Disaster Victims can assist them, and make it easier for them to obtain a new mortgage to replace the home they lost.

 

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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 11/13/2012 02:17 AM
  2. Nina Hollander 11/13/2012 04:32 AM
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Comments 20 New Comment

Rainmaker
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Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL
George, when I read this, of course the first thing I thought of was the recent storm damage in the northeast...this program is good news for many suffering loss of property in your area.
November 13, 2012 06:24 PM
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Jennifer Fivelsdal | Call 845-758-6842 Helping you achieve your real estate goals
In Dutchess Columbia and Ulster Counties
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571

George this is such timely information.  I hope those who suffered a lost will look into this program.

November 13, 2012 09:23 PM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Ginny you are welcome

Nick it would have come in handy with those that suffered major losses in New Orleans as few years ago as well.  No one wants to lose their home, but when it happens it is good to know that there is at least a little assistance.

Jennifer, Sandy left many homeless and trying to get their life back in order.  Hopefully this helps a little.

November 14, 2012 05:10 AM
Rainmaker
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Michelle Evans Arnold
Associate Broker
Arizona Land Sales

WOW!!  What Great information for people in that area!  Good Job on researching that!!

November 14, 2012 05:30 PM
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George Souto
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George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Michelle thank you and hopefully it will help others as well.

November 14, 2012 07:35 PM
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George Souto

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