November 8, 2012
An FHA press release announces help for Rhode Island storm victims in the wake of Hurricane Sandy. According to the FHA/HUD press release HUDNo.12-169; “U.S. Housing and Urban Development Secretary Shaun Donovan…announced HUD will speed federal disaster assistance to the State of Rhode Island and provide support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.”
The help comes after a presidential declaration of a federal disaster area in Bristol, Newport and Washington Counties. “The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties” according to the press release.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can.”
FHA and HUD assistance includes the following as discussed in the press release:
- Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available – HUD’s Section 203(h) program 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
- Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house 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…
Borrower affected by the storm should contact both their lenders and the FHA as soon as possible in the aftermath of any natural disaster or damage to the home related to it. Borrowers should continue to make mortgage payments even if their property is not habitable–discuss options, insurance and other issues with an FHA rep, your loan officer, and your insurance company where appropriate.
Do you have questions about FHA home loans? 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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