100% FINANCING - NO MONEY DOWN -
DISASTER HOME LOANS FOR PURCHASE OR REFINANCE
What is the Disaster Home Loan?
This is a specialty FHA loan program that provides up to 100% financing to help victims of disasters purchase new properties or rebuild after their homes have been substantially damaged.
In 2019 there were over 100 disaster declarations according to data from FEMA, the Federal Emergency Management Agency. Causes included severe winter storms, hurricanes, tornados, flooding, wildfires, and mudslides, among others.
It is still necessary for the borrower to be approved for the new loan, and to demonstrate that it will be affordable. Eligibility will be determined by examining the borrowers’ income, assets, liabilities, and credit history and score, as well as the market value and condition of the property to be financed. When rebuilding, the value taken into consideration will be the amount that the home will be worth in the current market once it is complete.
An FHA disaster victim mortgage can be an excellent option when a home located in a disaster area has been destroyed.
Events that can be declared a major disaster include:
In the immediate aftermath victims are likely to seek temporary housing such as in an emergency shelter, in a hotel or rental home, or by staying with a friend or family member. In the short term the focus will be on re-establishing their own safety and that of their loved ones. Once the situation is stable attention can be given to figuring out where to live long term.
Homeowners whose homes have been destroyed may choose to rebuild. The Disaster Home Loan offers one of very few 100% financing options for home construction. Another option, available to both homeowners and renters who have been displaced, is to purchase a new home.
This program benefits not only homeowners but communities as well. When a major disaster hits an area recovery can take a long time. When residents choose to leave and settle somewhere else this can drastically slow recovery. Encouraging victims to remain, and commit to rebuilding helps in many different ways.
Local businesses can continue to operate as they retain access to employees and customers. Area schools have higher enrollment which means greater funding. In addition, a sense of resiliency and pride in the community is fostered.