December 19, 2012
It seems hard to believe that Hurricane Sandy is STILL making headlines these days, but on December 17, the FHA announced the latest round of disaster relief for Sandy victims–this time in the District of Columbia. That relief includes foreclosure assistance, rehab loans and refinancing loans.
According to the FHA/HUD press release HUDNo.12-190, “U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the District of Columbia in addition to resources being provided by FEMA and other federal partners. HUD will provide support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.”
The week prior to that December 17 press release, President Obama made a federal disaster declaration for the District of Columbia, which allows the FHA and HUD to offer the following types of help to those in the affected area:
Immediate foreclosure relief: There is a 90-day moratorium on foreclosures and forbearance on foreclosures of FHA-insured home mortgages.
The Section 203(h) program: This FHA loan program offers FHA insurance to disaster victims who have lost their homes and “are facing the daunting task of rebuilding or buying another home” according to the FHA official site. Under this program, qualified applicants are eligible for 100 percent financing to include closing costs.
The Section 203(k) loan program: The 203(k) program “enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home”.
These programs are offered to borrowers in federally declared disaster areas such as the District of Columbia, but there are also other assistance programs available for home owners. Borrowers should register with FEMA, contact the FHA directly, and discuss their situations with a loan officer. Home owners should not rush into insurance settlements or proceed without having damaged or destroyed property evaluated by professionals to get an accurate estimate of damages, repair costs, and more. For help, contact the FHA at 1-800 CALL FHA.
Do you have questions about the FHA home loan program? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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