Articles in Category: FHA Disaster Assistance

June 5, 2017

HUD Announces Extension of FHA 203(h) Disaster Insurance

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) | more...

May 2, 2017

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

By Bruce Reichstein

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; and -Louisiana Severe Storms and Flooding (DR-4277) declared on August 14, 2016. Normally, such assistance is | more...

December 27, 2016

HUD Announces Additional Relief To Disaster Areas

By Joe Wallace

As 2016 draws to a close, HUD announces that some of the hardest hit natural disaster areas are getting nearly $2 billion in additional federal relief. According to a Department of Housing and Urban Development press release, HUD “awarded an additional $1.8 billion to help Louisiana, West Virginia, Texas, North Carolina, South Carolina and Florida to recover after severe flooding events that occurred earlier this year. Provided through HUDs Community Development Block Grant Disaster Recovery (CDBG-DR) Program, these recovery funds will assist the most impacted communities that experienced the most serious damage to their housing stock.” Earlier this month, President Obama signed the Fiscal Year 2017 Further Continuing Resolution, which became law on December 10, 2016. The resolution is described on the HUD official site as a stopgap spending measure. | more...

October 7, 2016

Natural Disasters and FHA Mortgages

By Joe Wallace

Natural disasters are a serious issue for home owners, whether they have just closed, paid off their mortgages, or are somewhere in between. When a hurricane strikes, when flood waters rise, or when other acts of nature threaten, damage or destroy homes, many aren’t sure where to turn or what to do first. FHA mortgage loan options in these cases depend on a variety of factors, but there is help available to rebuild and recover. FHA mortgage options include 203(k) and 203(h) loans (including refinance loans) that can help home owners recover, but what do to in the meantime? The first thing a home owner should do is contact FEMA to see what assistance may be available on a federal level. For the most recent (at the time of this | more...

June 2, 2016

FHA 203h Loans For Disaster Victims

By Joe Wallace

Did you know the FHA offers a type of home loan specifically for those recovering from a disaster? The FHA 203h loan is described in HUD 4000.1 (the FHA loan rulebook for Single Family Mortgage loans and refinance loans) as follows: “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. Mortgages to be insured under Section 203(h) must be processed and underwritten in accordance with the regulations and requirements applicable to the 203(b) program.” Borrowers must have a minimum FICO score of 500 to qualify under FHA loan guidelines, and lender standards may also apply. The FHA 203h loan rules include the following for eligibility. “The previous residence | more...

May 29, 2015

Texas Flooding, FEMA, and FHA Disaster Relief Options

By Joe Wallace

With headlines about Texas flooding, FHA borrowers there and in other areas in danger of being affected by natural disasters this spring may wonder what options are open to them in the wake of a flood, a hurricane, tornado or other weather event. The FHA and HUD do have options for qualified borrowers affected by a natural disaster. At the FHA/HUD official site, you’ll find the following: “Was your home or your ability to make your mortgage payments harmed by an event that the President declared a disaster? You may qualify for relief to help you keep your home. Much of the mortgage industry and The United States Department of Housing and Urban Development are committed to assisting borrowers whose lives and livelihoods are thrown into turmoil by a disaster. | more...

April 1, 2015

Spring Thaw, Natural Disasters, and FHA Loans

By Joe Wallace

With the advent of spring comes melting snow, and in some areas that can mean flooding or worse. Some homeowners may find themselves in the way of rising flood waters because of spring showers, storms and other events. What can an FHA borrower do to prepare in case natural disaster strikes near them? The first thing to do is become familiar with the FHA loan natural disaster policy, found on the FHA official site at FHA.gov. That policy page includes the following introduction: “Was your home or your ability to make your mortgage payments harmed by an event that the President declared a disaster? You may qualify for relief to help you keep your home. Much of the mortgage industry and The United States Department of Housing and Urban Development | more...

March 4, 2015

FHA Home Loans and Natural Disaster Relief

By Joe Wallace

We received a reader question recently about disaster relief and related issues. While this question was hard to follow, it raised a serious issue. We reprint the reader question here verbatim, with lender names deleted: “have fixed F H A loan…i have a sandy disaster home and have been on a low payment pln that is ended as of febuary thet=y the bank seem too be trying tiofire a foreclosure a or pro for inn their home presuvatuion committee is a joke , i will be able too resume full payment when y]the house id =s finished apor 4 months ui p=bought it in 2012 it has an income producing apartment of a pox 1500,00 per month and the mortgage will back payments is 100k funding from insurance and | more...

December 5, 2013

FHA Loan Down Payment Sources: Disaster Relief Grants and Loans

By Joe Wallace

Whenever a natural disaster strikes and the affected counties become federally-declared disaster areas, one source of help comes from FHA loan programs such as the FHA 203(k) Rehab loan. There may also be FEMA, state and local assistance for borrowers trying to recover from storm damage or other disaster-related problems. Some can’t rehab a damaged home and must look for a new place to live. When it comes to new purchase FHA loans, could certain types of disaster relief count as a legitimate source of down payment funds? If those sources meet FHA approval, the answer could be yes. According to HUD 4155.1, Chapter Five Section B, “Grants or loans from state or Federal agencies, such as the Federal Emergency Management Agency (FEMA), that provide immediate housing assistance to individuals | more...