June 1, 2016
If you have been affected by recent flooding in Texas, Mississippi, or elsewhere, there is important information from the FHA and other agencies you should know about that can help in the recovery following a natural disaster.
Fair Housing Act laws are an often-overlooked aspect of disaster recovery. Did you know there is a complete section of the FHA official site that discusses Fair Housing Act law, intended to help inform survivors of a natural disaster? According to the FHA/HUD official site, “The aftermath of a disaster can be a time of loss and transition for individuals and communities. Housing discrimination is always illegal. Know your rights and respect the rights of others…”
Home owners affected by floods or other natural disasters are often in need of rental housing while their homes are being evaluated, repaired or rebuilt, etc. In such cases, being aware of your Fair Housing Act rights is crucial. According to the FHA official site, “In the sale and rental of housing, no one may take any of the following actions based on race, color, national origin, religion, sex, familial status, or disability:
Refuse to rent or sell housing
Refuse to negotiate for housing
Make housing unavailable
Deny a dwelling
Set different terms, conditions, or privileges for sale or rental of a dwelling
Provide different housing services or facilities
Falsely deny that housing is available for inspection, sale, or rental
For profit, persuade owners to sell or rent (blockbusting)
Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing”
When it comes to the repair or rebuilding of a home affected by a natural disaster, borrowers living in an area the President has declared an official disaster area should know about the options made available to them through the FHA. “You may qualify for relief to help you keep your home. Much of the mortgage industry and The United States Department of Housing and Urban Development are committed to assisting borrowers whose lives and livelihoods are thrown into turmoil by a disaster.”
The FHA official site urges borrowers to contact their loan officer if making mortgage payments is a problem in the wake of the disaster. “If you can’t pay your mortgage because of the disaster, your lender may be able to help you. If you are at risk of losing your home because of the disaster, your lender may stop or delay initiation of foreclosure for 90 days. Lenders may also waive late fees for borrowers who may become delinquent on their loans as a result of the disaster. If you have a conventional mortgage, you are strongly encouraged to contact your lender for further information, and to see if you are eligible for relief.”
Homeowners may be eligible for FHA rehab loans (the FHA 203k rehab loan, FHA 203h loan, Title 1 home improvement loan) that can allow for the repair or rebuilding of a home. These loans may feature certain requirements such as having an intact foundation or other rules depending on the loan program you apply for. It’s important to discuss these options with your lender as soon as possible after the disaster to see what may be required to apply and get help.
Borrowers may be required to document the damage to the home, or be able to document to what extent a home was partially damaged by the disaster. For disaster-related loans, there may be no down payment required in some cases, and refinancing loans may also be available that can help pay for repairs and rehab of an affected property.
You can learn more about disaster resources at the FHA/HUD official site. It’s also important to contact FEMA and any local agency that may be offering help to home owners after a disaster strikes.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today:
http://www.fha.com/fha_loan_limits_widget
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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