August 22, 2017
The Department of Housing and Urban Development (HUD) has announced disaster relief for storm victims in West Virginia, thanks to a federal disaster area declaration for Harrison, Marion, Marshall, and Wetzel counties.
According to a press release on the FHA/HUD official site, the agency will “speed federal disaster assistance to the State of West Virginia and provide support to homeowners and low-income renters forced from their homes due to severe storms, flooding, landslides, and mudslides” in zones now declared federal disaster areas.
The FHA/HUD disaster relief measures include a 90-day moratorium requested by HUD on all FHA loans in the affected areas, and also the availability of FHA 203(h) rehab loans intended for “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”.
FHA rehab loans, also known as Section 203(h) loans, can be used for purchase or refinance. According to the press release, Section 203(k) loans help 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”.
These loans, often called FHA rehab mortgages, may be used in conjunction with other FHA loan options to repair or rebuild.
FHA borrowers in the affected areas should contact the FHA, the lender, and FEMA to learn what course of action may be required to take advantage of any help available.
It’s never safe to assume that mortgage payments are not due in the wake of a natural disaster, regardless of the condition of the borrower’s property afterward.
It’s only safe to assume you will need to contact your lender to make arrangements for loan forbearance and other foreclosure avoidance measures.
You’ll also need to discuss your circumstances with your insurance provider, but it’s important to avoid making hasty decisions about settlements or other issues until you have all the facts including whether a storm-damaged property is salvageable and for how much.
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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