Update ** this program is no longer being offered as of Aug 2018.
The FHA 203(h) program is a mortgage for people replacing homes that were destroyed in disasters. Under the Federal Housing Administration’s special 203(h) program, disaster victims can secure FHA financing to rebuild or to buy homes elsewhere. This is program is especially helpful for residents in South Texas recently flooded by Hurricane Harvey and of course victims of Hurricane Irma in Florida and Nate on the Gulf Coast. With Section 203(h) loans, the FHA backs mortgages made by approved banks and lenders to victims in presidentially designated disaster areas, according to the U.S. Department of Housing and Urban Development. This includes wind, water/flood, and fire damaged properties.
FHA 203(h) Loan Details:
The 203(h) loan may be used to finance the reconstruction of the borrower’s current home or the purchase of another home elsewhere. The program is specifically for the homeowner who is looking to rebuild their home and is likely to face difficulty with being able to borrow. FHA makes it easier for these borrowers to qualify for that loan by relaxing some of their normal requirements. The program is also 100% financing, no down payment required like normal FHA loans.
Who is Eligible For FHA 203(h) Mortgage:
If you did not have an FHA-insured mortgage prior to the disaster, you are still eligible to participate in the 203(h) program. FHA also relaxes many of its lending requirements, such as its minimum down payment. Borrowers may receive 100 percent financing but must have a minimum 620 credit score required by many lenders. Credit history requirements are loosened for disaster victims who may have late credit payments as a result of the disaster. FHA also relaxes job employment and income guidelines for disaster victims who may be forced to obtain new employment, a temporary job or who have totally lost employment paperwork in the disaster.
FHA 203(h) Eligible and Ineligible Properties
1-unit detached single family primary residences, detached PUD, and FHA approved condominiums.
Vacation / Second homes, investment properties, co-ops, and manufactured-mobile homes.
FHA 203 (h) loans require mortgage insurance, similar to other FHA mortgages. The up-front mortgage insurance premium is most commonly added to (rolled in) the borrower’s new loan. Keep in mind, the 203(h) program does have a one-year time limit on the loan application process.
Borrowers can learn more about the for FHA 203(h) by submitting the Request Contact form above. Please be sure note in the comments sections of the form that you are specifically inquiring about the 203 H program. A specialist will contact you quickly to discuss all the program approval requirement. Applicants should be prepared to show proof that they lived in the disaster area and evidence of the destruction of their property. Be sure to save any pictures, insurance reports, etc.
The application process is similar to FHA’s regular loan program, and it takes about 30 to 60 days depending on the availability of local resources. Remember that resources for re building are generally limited for a time after a natural disaster.
Again, this program is available nationwide to any Federally declared disaster area. We are proud to serve homeowners nationwide including Houston, Corpus Christi, Galveston Texas, Jacksonville, Naples, Fort Myers, Orlando FL, Sarasota, Tampa, St. Petersburg, Clearwater, Tallahassee, Key West, Miami