November 27, 2012
On the FHA/HUD official site, borrowers will find a notice regarding the closing time requirements for loans affected by Hurricane Sandy.
FHA loan rules have been temporarily modified to make exceptions for the normal closing time requirements for FHA borrowers in federally-declared disaster areas affected by Sandy.
According to the FHA, ” In cases where there is no expectation of a material change in the loan application documentation, lenders closing on loans for properties located in Presidentially-Declared Major Disaster Areas affected by Hurricane Sandy will be granted an additional sixty days for all documents in the mortgage loan application at closing beyond the 120 days for completed construction or 180 days for new construction set out at HUD Handbook 4155.1 1.B.1.h.”
Again, this announcement is only for what the FHA describes as “Presidentially-Declared Major Disaster Areas” affected by Hurricane sandy. The FHA waiver “applies to all case numbers assigned on or before October 29, 2012, with a settlement date on or after October 29, 2012”.
Hurricane Sandy has left several states in its wake that now have counties declared as federal major disaster areas. Those states inlcude Delaware, Connecticut, New Jersey, and New York. For more information, contact the FHA directly at 1-800 CALL FHA.
Do you have questions about the FHA home loan process? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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