February 12, 2019
Department of Housing and Urban Development has announced federal disaster assistance for the State of Alaska and those affected by the earthquake there.
On January 31st, the President declared a major disaster area in Anchorage, Matanuska-Susitna Borough, and Kenai Peninsula Borough.
A federal disaster declaration allows HUD to offer foreclosure relief and other assistance to those living in the affected areas. According to the press release, HUD offers immediate foreclosure relief to those with FHA mortgages in the disaster area.
Borrowers should not delay in contact their FHA loan officers. Home loan disaster relief is not automatic and you will need to discuss your options with the lender as soon as possible once you know you will experience a delay in making payments.
Borrowers are eligible for 100 percent financing, including closing costs; this rehab loan is also available as a refinance loan. The FHA 203(h) rehab loan or refinance loan is available through participating FHA lenders.
If you are experiencing financial difficulty as the result of a disaster and reside in a federally declared disaster area, these benefits are available to you, but they are not indefinitely available.
Talk to your loan officer about the requirements to apply for these benefits as soon as possible, but if you experienced a delay in exploring your benefits, don’t hesitate to contact the lender, the FHA, and even FEMA to see how long you have to get assistance.
Some disaster relief gets extended beyond the original deadlines and other types of relief may be available for up to a year or more depending on circumstances and the need.
Those who were in the closing process when a natural disaster strikes should discuss the situation with the lender and assess the damage to the home that was to be purchased. FHA loan rules will apply differently depending on what part of the home loan process you were in when the disaster occurred.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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