Financing the rebuild or replacement of your family’s home after a hurricane can be a huge challenge. If you were in Florida, outside the destructive path of Irma, then the memories of the storm have already faded away. However, if your Irma destroyed your house, gaining new financing in the wake of such disasters can be frustrating. Palm State Mortgage Company realizes that, for many people directly in the path of Irma’s rage, the nightmare of unplanned reconstruction or house hunting to replace your lost home has barely begun.
Financing for Victims Seeking Help, a Hand-up, not a Hand-out
To put it briefly, Palm State Mortgage Company is sharing the news that there is help for victims whose homes Irma destroyed. The helpful program is called the FHA 203(h) program.
Did Irma destroy your home with wind, water or fire? When the storm calmed, you surveyed the need to rebuild or relocate. Then you surveyed the budget. Were you and your family dismayed because you did not count on the expense of such a horrific disaster? The FHA 203(h) is a simply a government-sponsored program to help victims of natural disasters with financing to replace their homes.
We have already heard of the help extended by this program both to South Texas victims of Hurricane Harvey and closer to home, financing assistance to the victims in Hurricane Irma.
With Section 203(h) loans, the FHA backs mortgages offered by approved banks and other lenders. They are specifically designed with relaxed rules, but only for victims in the presidentially designated disaster areas. Under U.S. Department of Housing and Urban Development, this includes wind, water/flood and fire damaged properties.
Kinder, Gentler Financing with FHA 203(h)
You see, the FHA knows you might not have been properly prepared for such a loss. Do you want to stay on your property and rebuild? Or have you decided to move to another home? Either way, you can use the FHA 203(h) loan, if you qualify.
The program especially favors the homeowner who wants to rebuild their home but knows he will have a problem with borrowing the money. The FHA facilitates your financing by relaxing your normal requirements for that loan. If you think you might qualify for such help, then check out the FHA Resource Center.
Get the Details of Special Financing from FHA 203(h) Mortgage
Surprisingly, you can still qualify for this financing if you did not have an FHA Mortgage previous to Irma’s arrival. Other benefits include:
1. Down Payment Relaxed. You might qualify for 100 percent financing. That means No Down Payment.
2. On the one hand, this privilege is available to you only if you have a 580 credit score. The 580 credit score is required by most lenders. If you were late on a mortgage payment because of Irma’s bad behavior, then the FHA will loosen the credit history qualification.
3. Likewise, the FHA adjusts job employment and income requirements if you were among Irma’s victims.
In this way, the program allows some latitude to disaster victims who are seeking new work or temporary jobs or simply lost all their paperwork in the storm.
At Palm State Mortgage, we are pleased to see some of Irma’s victims obtain the help they need to depart from or help re-build our Florida presidentially designated disaster areas. It’s a dignified way to help disaster victims in disaster-torn areas recover from Irma’s wrath, get mortgages and re-establish their status as homeowners.
Remember, This Financing Program is Not Free
This financing program requires an insurance premium, which can be financed. You will also sign up for monthly premiums that are added to your regular mortgage payment.
FHA mortgage insurance is not free. You will need to pay an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead, are added to the regular mortgage payment.
Also, Palm State Mortgage Company thinks it’s good for you to know that this is a limited program, with guidelines for the amount you might borrow on your house. The program is earmarked for low and moderate income people. HUD sets limits on the amount that may be insured.
To make sure that its programs serve low and moderate income people, FHA sets limits on the dollar value of the mortgage. Investigate those limits at the FHA mortgage limit resource online.
If you were a victim of Irma’s outrage, and you are grimly house hunting or looking at the prices of rebuilding, we suggest you visit a HUD-approved housing counseling agency. They specialize in helping you with disaster-related problems.
The Mortgage Financing Take-Away for Today
Homeowners are encouraged to also contact a HUD-approved housing counseling agency or call them toll-free at (800) 569-4287.
If your Irma totally wrecked your house, then call the number above. Or check into this special financing FHA 203(h) program soon. Be aware that the benefits only last for a year from the day the president declared the disaster area. And you know how fast a year can evaporate. So, Palm State Mortgage Company hopes you will pass this information on to anyone you know that might be having difficulties due to Irma’s cruel visit to Florida.