October 5, 2017
The head of the Department of Housing and Urban Development has written an open letter to the victims of Hurricane Harvey discussing the FHA/HUD outreach to affected areas and options for disaster relief.
According to the FHA/HUD official site, HUD Secretary Ben Carson addressed those in the federal disaster areas in Texas stating, “HUD is tasked with comprehensive, long-term disaster relief and has been working on the front lines in Texas. We are your ear on the ground and your voice in Washington, and we are committed to providing a compassionate and effective response.”
Secretary Carson’s remarks included options for those recovering from Hurricane Harvey. “We are currently locating vacancies and moving displaced residents into safer housing.”
“We are also working closely with homeless shelters and with temporary shelters, ensuring they have the resources they need. And we are working to place those in shelters into long-term or permanent housing.”
Carson mentions FHA relief programs including a 90-day foreclosure moratorium for homes purchased with FHA loans within the federally declared disaster areas. Loan forbearance and FHA loan modification are also options for those struggling to keep up with payments in the affected areas.
There is other relief mentioned in the HUD secretary’s letter. “Additionally, we have made specific mortgage products available for those impacted by Hurricane Harvey. Some homeowners whose properties were destroyed or damaged may be eligible for 100 percent financing through HUD’s Section 203(h) program.”
“This will enable them to rebuild or buy another home. In addition, homeowners can use Section 203(k) FHA insurance to refinance an existing mortgage into a new mortgage that covers the cost of repairs.”
These programs may be available through participating FHA lenders. If you need to review your FHA loan options for disaster-related repairs or rebuilding, contact a participating lender to see what options are available to you.
Those options may include FHA 203(h) rehab loans for disaster victims, 203(k) rehab loans (which are not restricted to federal disaster areas) and how you may be able to use these two programs at the same time in qualifying circumstances.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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