The Department of Housing and Urban Development has announced an extension of FHA 203(h) loans for qualifying residents of federally declared disaster areas in Louisiana. The FHA 203(h) program is described in the FHA Single Family Handbook HUD 4000.1. “Section 203(h) of the National Housing Act authorizes FHA to insure Mortgages to victims of a Presidentially-Declared Major Disaster Area (PDMDA) for the purchase or reconstruction of a Single Family Property.”
According to the HUD official site, there is now an “additional period of eligibility for section 203(h) mortgage, as a result of the extension of Federal Assistance for victims of the March 13, 2016 and August 14, 2016 Presidentially-Declared Major Disaster Areas of Louisiana…”.
FHA loan rules state that unless an extension is offered, the case numbers for FHA 203(h) loans for these areas must be assigned no later than one year after the declaration of the federal disaster area.
The press release from HUD serves as notice that the extension has indeed been offered and is now available to those who qualify as mentioned in the press release:
“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”
For additional information, www.hud.gov/answers or call the FHA Resource Center at their toll-free number: 1-800 CALL FHA (1-800-225-5342). If you need an FHA rehab loan but aren’t sure if you qualify for the FHA 203(h) program, contact a participating lender and see whether the FHA 203(h) plan or the FHA 203(k) rehab loan program is right for your needs.
203(k) rehab loans are not specifically for natural disaster victims, so if the 203(h) program isn’t available to you, the 203(k) may be the rehab loan you need.