Articles in Category: FHA Disaster Assistance

September 19, 2017

HUD Announces Disaster Relief For Virgin Islands, Georgia

The Department of Housing and Urban Development (HUD) has announced disaster relief for parts of Georgia and the U.S. Virgin Islands. As more parts of the United States and its’ protectorates are affected by hurricanes and tropical storms, many of those areas are being declared federal disaster areas and as such become eligible for certain aid from HUD, FEMA, and other agencies. The disaster declaration for St. Thomas and St. John islands, plus Camden, Chatham, and Glynn counties in Georgia mean that the FHA “activates a mortgagee letter making a variety of insured loan programs available for disaster victims and putting into play use of special loan servicing and underwriting requirements” according to the FHA/HUD official site. What options are available in these areas? According to HUD, those directly affected | more...

September 14, 2017

What You Should Know About FHA 203(h) Loans For Disaster Victims

By Bruce Reichstein

After Hurricane Irma and Hurricane Harvey, the Department of Housing and Urban Development has been issuing press releases as more federal disaster areas are declared in affected counties. When the government names such disaster areas, they become eligible for a variety of relief measures including FHA 203(h) loans for disaster victims. During this particular set of disasters, there’s been a trend( in news media and among those affected by the hurricanes) to refer to those who have experienced them as “survivors” rather than “victims”. While that is acknowledged and respected here, the wording used in official FHA/HUD guidance such as the FHA Single Family Home Loan Handbook (HUD 4000.1) is “victims” and for accuracy’s sake that’s how we’ll reference the materials when quoting from and discussing these references. What You | more...

September 14, 2017

HUD Announces Disaster Relief For Florida

By Joe Wallace

In the aftermath of Hurricane Irma, the Department of Housing and Urban Development has announced disaster relief measures for Florida following a presidential declaration of federal disaster areas in the state. According to a press release on the FHA/HUD official site, the following counties are now recognized as federal disaster areas: Broward, Charlotte, Clay, Collier, Duval, Flagler, Hillsborough, Lee, Manatee, Miami-Dade, Monroe, Palm Beach, Pinellas, Putnam, Sarasota and St. Johns counties. According to the release, HUD offers a variety of relief options to those in the affected areas including (but not limited to) the following: A 90-day moratorium on foreclosures and “forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages”. Making Section 203(h) loans available to those in the counties listed above. The 203(h) program “provides FHA insurance to | more...

September 13, 2017

HUD Announces Disaster Relief For Puerto Rico

By Bruce Reichstein

In the wake of Hurricane Harvey and Hurricane Irma, the Department of Housing and Urban Development has made announcements about disaster relief as certain parts of the country become federally-declared disaster areas. The latest of these is a press release from HUD on relief efforts to Puerto Rico. According to a press release on the FHA/HUD official site, “HUD will speed federal disaster assistance to the Commonwealth of Puerto Rico and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma.” That assistance includes a 90-day moratorium on foreclosure action for FHA mortgages, the availability of FHA rehab loans for disaster victims, and more. According to HUD, these options can help those in the affected areas recover, rebuild, or purchase a new home to replace | more...

September 13, 2017

Can I Get An FHA 203(h) Rehab Loan With Bad Credit?

By Joe Wallace

Can I get an FHA 203(h) rehab loan with bad credit? That question is a serious one in the wake of natural disasters such as Hurricane Harvey and Hurricane Irma. Borrowers who are in the process of fixing bad credit, catching up on their payments, or trying to improve their overall credit situation have enough to manage without the added complication of trying to repair or salvage a home damaged in a natural disaster. What are the FHA loan rules for credit qualifications when applying for FHA 203(h) rehab loans in federally-declared disaster areas? FHA Loan Credit Requirements For 203(h) Rehab Mortgages The FHA loan handbook, HUD 4000.1, instructs lenders processing 203(h) rehab loans and refinance loans to be as flexible as possible with credit requirements. That flexibility is governed | more...

Credit Scores For An FHA Home Loan: When Low Credit Is Not Bad Credit

September 6, 2017

HUD Announces Disaster Relief Priorities For Survivors of Hurricane Harvey

By Bruce Reichstein

HUD has announced disaster relief priorities for survivors of Hurricane Harvey, and those priorities include long-term housing needs for those displaced by the disaster. According to a press release published on the HUD official site, the Department of Housing and Urban Development is the “lead federal coordinating agency for long-term disaster-related housing needs resulting from Hurricane Harvey. Federal partners are working closely with the Texas state-led housing task force, as well as other state, local, tribal and voluntary agencies, to meet the need for quality affordable rental homes.” Post-Harvey disaster recovery efforts are, as you can see from the quote above, far-reaching. Those who have been displaced may be eligible for FEMA assistance, and HUD urges all in hurricane affected areas to contact FEMA to determine what they may be | more...

August 30, 2017

FHA Loans And Natural Disasters: What You Should Know

By Bruce Reichstein

FHA home loans can be affected by natural disasters such as Hurricane Harvey. Whether you have experienced damage to your property due to high winds, flooding, or other issues, once that damage has been done you will need to deal with your mortgage lender, your insurance company, and other agencies. Some borrowers may need financial relief in the form of loan forbearance, foreclosure avoidance or other measures. The FHA loan handbook, HUD 4000.1, has a section heading titled “Loss Mitigation” which is all about foreclosure avoidance and options borrowers may have to save their homes. Those options include what happens after a natural disaster, starting with a 90-day moratorium on foreclosures based on circumstances outlined below: “FHA-insured Mortgages secured by Properties located in Presidentially-Declared Major Disaster Areas (PDMDA) will be | more...

August 29, 2017

What Happens To My FHA Loan In A Natural Disaster?

By Bruce Reichstein

What happens to my FHA loan in a natural disaster? If you have already closed on your FHA mortgage, you’ll need to get in touch with your lender to determine what next steps are, but what about those who were in the process of purchasing property but did not close the loan before the disaster struck? FHA loan rules anticipate this problem and have specific instructions to the lender for handling what to do if a borrower’s purchase winds up in a federally declared disaster area. According to the FHA loan handbook, HUD 4000.1, “All Properties with pending Mortgages or endorsements in Presidentially-Declared Major Disaster Areas (PDMDA) must have a damage inspection report that identifies and quantifies any dwelling damage. The damage inspection report must be completed by an FHA | more...

August 28, 2017

White House Announces Federal Disaster Assistance For Texas

By Bruce Reichstein

On Friday, August 26, 2017, the White House announced federal aid for Texas to help affected counties in the state recover from Hurricane Harvey. According to Whitehouse.gov, the President “declared that a major disaster exists in the State of Texas and ordered Federal aid to supplement State and local recovery efforts in the areas affected by Hurricane Harvey beginning on August 23, 2017, and continuing.” A complete list of affected counties named as federal disaster areas is not available at the time of this writing, and conditions may be such that more counties are listed in the coming days or weeks. But for all affected areas, the FHA and HUD have disaster relief measures that can help home owners trying to recover from the effects of the hurricane including high | more...

August 25, 2017

What If My Home Was Damaged In A Natural Disaster?

By Joe Wallace

What if my home was damaged in a natural disaster? This is an important question. The answers, depending on circumstances, may affect FHA borrowers and non-FHA borrowers alike. The FHA and HUD official site discusses a variety of remedies for those who have experienced a natural disaster. Some of the most important advice? Contact your lender, your insurance agent, and FEMA as soon as possible after the disaster to make arrangements regarding FHA loan forbearance, foreclosure avoidance, and federal assistance. For borrowers with conventional mortgages, different options and requirements may apply. It is not safe to assume that any of the above is automatic-in most cases help must be applied for, especially where FEMA is concerned. Borrowers should also not allow themselves to be pressured into quick insurance settlements. You | more...