June 9, 2011
Recent storms in Illinois, Oklahoma, Minnesota and elsewhere have prompted a great deal of activity from the FHA and HUD recently. A series of press releases have announced help for states and “other entitlement communities” including the ability to redirect or re-allocate current federal resources toward disaster relief and recovery efforts.
HUD also reminds borrowers about its standard types assistance for storms and other natural disasters, including the agency’s policy on foreclosures. “…immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages…” according to HUD press release HUDNo.11-116.
Other help for FHA borrowers includes the HUD Section 203(h) program which “provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home.
Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs…” Another HUD 203 program is 203(k) which allows those who lost homes to finance or refinance a home “along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home”.
In most cases, the borrower must apply and qualify for these relief programs–they aren’t automatic. Additionally, the FHA encourages those with existing FHA loans trying to recover from a storm or other natural disaster to contact FEMA as soon as possible since some federal relief programs require the home owner to register with FEMA prior to applying for benefits or relief.
More information is available from FEMA at the Help After A Disaster page.
Those with FHA home loans who are affected by disasters in states other than those listed here–Illinois, Oklahoma, and Minnesota, may be eligible for the same type of HUD relief programs. Contact the nearest FHA Regional Loan Center to learn what your options are and what help is available in your circumstances.
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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