The resent snow storm in Buffalo, NY has resulted in many homeowners suffering major property losses as a result of the several feet of snow they were hit with. The weight of this much snow on roofs, has caused several of them to collapse, and many homes may be beyond rebuilding. Parts of the country have also seen complete destruction of homes because of devastating tornado's which have destroyed everything in their path. The heavy rains and flooding in California, has also resulted in the lose of property as well.
These disasters reminded me I should post a blog informing homeowners who are victims of a major disaster that there is a FHA Mortgage Option For Homeowners Who Are Disaster Victims.
FHA Section 203(h) of the FHA Guidelines addresses "Disaster Victims". Section 203(h) provides FHA Mortgage Option For Homeowners Who Are Disaster Victims, if a Homeowner lost their home because of a natural disaster, and the President has declared the area they live in a disaster area. If the Homeowner meets those conditions, they can apply for a new mortgage under the Section 203(h) Mortgage Program for Disaster Victims.
Under Section 203(h) the Borrower's previous home must have been destroyed or damage to such an extent that rebuilding or purchasing a new home is necessary. Section 203(h) not only applies to Homeowners, but also to renters who were impacted by the lost of their property.
In order to apply for a new Mortgage under Section 203(h) a Homeowner or Renter must provide the following proof:
- Proof of residency:
- Valid drivers license
- voter registration card, or
- Utility bill
- Proof of destruction:
- Insurance Report
- Inspection Report by an independent Inspector or Government Agency, or
- Photograph as evidence that the property was destroyed or damaged to the point of that it does not make sense to rebuild it.
Mortgages under Section 203(h) are only available for the following properties:
- One Unit Detached Properties
- Approved Condominium Projects
NOTE: Multi-Family properties are not eligible.
Mortgages under Section 203(h) are:
- Eligible for 100% financing, so there is no down payment required.
- Lenders can exclude the present mortgage payment from the Borrower's Debt-To-Income Ratios if the Borrower can show:
- The property was insured by a sufficient amount to pay off the remaining mortgage balance of the damaged home.
- The Borrower is working with the Lender servicing the property to address the Borrower's mortgage obligation.
So there is HOPE for homeowners who lose their home because of a natural disaster. No Homeowner wants to lose their home, but it is good to know there is an FHA Mortgage Option For Homeowners Who Are Disaster Victims, and can assist them in obtaining a new mortgage to replace the home they lost.
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Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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