FHA Mortgage Option For Homeowners Who Lost Their Home To A Natural Disaster

Reblogger Roy Kelley
Education & Training with Realty Group Referrals 16766

Section 203(h) not only applies to Homeowners, but also to renters who were impacted by the lost of their property.

Original content by George Souto NMLS #65149

Many homeowners have recently lost their homes  by the  devastating damage caused by Hurricanes Harvey in Texas, and Irma in Florida.  This destruction caused by these hurricane reminded me I should once again post a blog informing homeowners who are victims of a major disaster that there is an FHA Mortgage Option For Homeowners Who Lost Their Home To A Natural Disaster.  

FHA Section 203(h) of the FHA Guidelines addresses "Disaster Victims".  Section 203(h) provides an FHA Mortgage Option For Homeowners Who Lost Their Home To 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 Lost Their Home To A Natural Disaster, 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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Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I missed reading the original one 

Sep 30, 2017 02:37 AM #1
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Please be sure to leave comments at the original blog by George Souto

Sep 30, 2017 04:15 AM #2
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

An excellent choice for a re-blog, Roy.  And a very timely post for those who may need this information.

Sep 30, 2017 05:08 AM #3
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much for your comments. It is always good to hear from you.

Sep 30, 2017 05:16 AM #4
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Roy thank you for re-blogging my blog and passing this information on to your readers.

Sep 30, 2017 08:18 AM #6
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