July 20, 2018

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HUD Extends 203(h) Disaster Relief For Louisiana Flood Victims

The Department of Housing and Urban Development has announced an extension of certain disaster relief help for those in certain federal disaster areas in Louisiana.

According to a mortgagee letter published on the HUD/FHA official site, HUD announces, “the additional period of eligibility” for Section 203(h) mortgages, which comes as an extension of “Federal Assistance for victims of the March 13, 2016 and August 14, 2016 Presidentially-Declared Major Disaster Areas of Louisiana”.

According to the HUD official site, the 203(h) program period of eligibility “is extended for case numbers assigned on or before September 8, 2017” for the following Presidentially-Declared Major Disaster Areas:

-Louisiana Severe Storms and Flooding (DR-4263) declared on March 13, 2016;


-Louisiana Severe Storms and Flooding (DR-4277) declared on August 14, 2016.

Normally, such assistance is available as long as a case number is assigned one year from the disaster area declaration, unless an extension such as the one announced here is made.

FHA 203(h) loans are described in HUD 4000.1 as a program designed “to insure Mortgages to victims of a Presidentially-Declared Major Disaster Area (PDMDA) for the purchase or reconstruction of a Single Family Property.”

203(h) loans are used to purchase a new home or repair an existing property damaged by the natural disaster. 203(k) rehab loans and 203(k) refinance loans are similar, but a federal disaster area declaration is not required for the 203(k) program.

The FHA single family home loan rule book says FHA 203(h) and 203(k) loans may be used in conjunction with one another. FHA 203 loans can also be used in conjunction with the FHA Energy Efficient Mortgage loan program for approved energy efficient upgrades.

If you live in one of the affected disaster areas and need to know how this extension announced by HUD might affect your transaction or proposed transaction, speak to a loan officer or contact the FHA directly at their toll-free number, 1-800 CALL FHA.

Bruce Reichstein - Staff Writer

By Bruce Reichstein

May 2, 2017

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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