FHA 203(h) Disaster Assistance Loans
Mid America Mortgage SW Inc. offers FHA’s 203(h) program for disaster victims. This program helps borrowers whose primary residence was located in a major disaster area and was destroyed or damaged to such an extent that reconstruction or replacement is necessary. This program provides assistance by:
* allowing borrowers to obtain up to 100% FHA financing for the purchase of a new home;
* allowing borrowers to finance the reconstruction of their home when combined with a Standard 203(k);
* allowing for derogatory credit subsequent to the date of the disaster; and
* allowing for exclusion of the mortgage payment on the borrowers destroyed residence in some circumstances.
This program offers 100% financing (purchase only) to individuals or families whose residences, whether owned or rented, were located in a Presidential-declared disaster area and is destroyed or damaged to such an extent that reconstruction or repair is necessary. The new home does not have to be located in the area where the previous home was located.
FHA 203(h) Eligible and Ineligible Properties
1-unit detached primary residences, detached PUD, and FHA approved condos.
1-unit attached primary residence, attached PUD, 2-4 unit primary residence, second homes, investment properties, co-ops, and manufactured homes.
If the credit report indicates satisfactory credit prior to a disaster and any derogatory credit subsequent to that date can be related to the effects of the disaster, FHA will consider, for its underwriting standards, that the borrower is a satisfactory credit risk.
Disaster victims with Secretary-held mortgages are eligible for new FHA-insured mortgages provided the borrower is current with the forbearance agreement at the time of the disaster and all payment for the preceding twelve months were made within the month due.
Contact Mid America Mortgage Southwest today! Give us a call today at 972-723-2611!