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4 financial resources for those impacted by Harvey and Irma

Mortgage and Lending NMLS #209419

Mortgage Forbearance in case of Natural Disaster

You may be eligible to temporarily stop making your monthly mortgage payment for up to 12 months if you are impacted by a natural disaster.

Click here for Fannie Mae's guide for Homeowners affected by Harvey and Irma.   One of the keys to determining if you are eligible for a mortgage forbearance is to see if your mortgage is owned by Fannie Mae or if your mortgage is owned by Freddie Mac.  To determine which of them holds your mortgage click on the following links:

Even if your home loan isn’t owned by Fannie Mae or Freddie Mac, you may still be eligible for a mortgage forbearance if you contact your servicer (that's the company to whom you make your payments each month). The phone number for your mortgage servicer should be located on your monthly mortgage statement, you'll want to look up your current mortgage servicer on the Mortgage Bankers Association website.

Tax Relief for those impacted by a Natural Disaster

In case of a natural, disaster you may be eligible to take a loan or hardship distribution from your retirement plan and extend when you can file your taxes if you filed an extension

Renovation Loan to repair your damaged home that insurance or the government won't cover

You may be eligible to take out a renovation loan for the purpose of rebuilding or renovating your home after a natural disaster

With both Harvey and Irma there was extensive flooding.  Homes that were believed would not flood actually did.  In many cases, homeowners may not have had flood insurance to cover the losses.  Since the repairs could easily amount to 10s of thousands of dollars many people do not have the cash.  If you were flooded and the structure seems to be ok then you may also need Mold remediation and that can be covered as well.  So you may ask how do I repair damage to your home after a disaster if it isn't covered by insurance?

Renovation loans can be used for both purchase and your existing home.  Since renovation loans are not considered cash-out mortgages in most situations then homeowners can use up to 95% of the value of their home for the conventional HomeStyle renovation mortgage to repair storm damage to their primary home and 90% of their second home.  If they have an investment property you can use a homestyle loan to repair storm damage they can use that to make repairs to the house and return it to service.

If you've got a few dings on your credit then you may want to consider using an FHA 203k loan to make storm damage repairs up to 110% of the value of your primary home or if you own a duplex, triplex or quadplex that you live in one of the units then the FHA 203k may be the answer for you. To determine which loan is best for you to check out our home renovation loan page or feel free to contact me.

Home Equity Cash out loan if insurance has covered the repairs but due to the disasters you are a little short on cash

If your situation is that you don't want to take out of your retirement account or if you don't have enough in the account or with your savings you can tap into that equity and get some cash to take care of your family.  The great part about a cashout mortgage is that you don't have to use the funds just for renovating your home.  It's cash and can be used for anything from bills to replenishing savings after the storm.  For details on doing a cashout home mortgage see our post on located here. The downside of a cashout mortgage is that you are limited, in most cases, to 80% of the current appraised value of your home. To see if a cashout home mortgage is right for you just contact me directly.

Thanks to bloggers at Woodlandsmortgagebank.com for assistance in writing this blog.


John Pusa
Glendale, CA

Henry J. Daniels - Sr Loan Officer Those are very helpful financial resources for those impacted by Harvey & Irma.

Sep 16, 2017 05:50 PM