Articles Tagged With: FHA Disaster Relief

October 7, 2016

Natural Disasters and FHA Mortgages

Natural disasters are a serious issue for home owners, whether they have just closed, paid off their mortgages, or are somewhere in between. When a hurricane strikes, when flood waters rise, or when other acts of nature threaten, damage or destroy homes, many aren’t sure where to turn or what to do first. FHA mortgage loan options in these cases depend on a variety of factors, but there is help available to rebuild and recover. FHA mortgage options include 203(k) and 203(h) loans (including refinance loans) that can help home owners recover, but what do to in the meantime? The first thing a home owner should do is contact FEMA to see what assistance may be available on a federal level. For the most recent (at the time of this | more...

August 18, 2016

HUD Announces Federal Relief For Louisiana Flood Victims

By Joe Wallace

The Department of Housing and Urban Development has announced federal assistance for victims of recent flooding in Louisiana. According to HUDNo.16-122, “HUD will speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms and flooding.” Earlier, the press release states, the President, “issued a disaster declaration for Acadia, Ascension, Avoyelles, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Point Coupee, St. Landry, St. Martin, St. Tammany, Vermilion, Washington and West Feliciana” as well as East Baton Rouge, Livingston, St. Helena and Tangipahoaparishes. One of the benefits of this act is that victims of the flooding have access to foreclosure relief and other help. Families who may have been forced from their homes need to know | more...

June 2, 2016

FHA 203h Loans For Disaster Victims

By Joe Wallace

Did you know the FHA offers a type of home loan specifically for those recovering from a disaster? The FHA 203h loan is described in HUD 4000.1 (the FHA loan rulebook for Single Family Mortgage loans and refinance loans) as follows: “Section 203(h) of the National Housing Act authorizes FHA to insure Mortgages to victims of a Presidentially-Declared Major Disaster Area (PDMDA) for the purchase or reconstruction of a Single Family Property. Mortgages to be insured under Section 203(h) must be processed and underwritten in accordance with the regulations and requirements applicable to the 203(b) program.” Borrowers must have a minimum FICO score of 500 to qualify under FHA loan guidelines, and lender standards may also apply. The FHA 203h loan rules include the following for eligibility. “The previous residence | more...

September 18, 2015

HUD Announces 2015 Relief For Victims Of Hurricane Sandy

By Joe Wallace

You read that correctly–the Department of Housing and Urban Development has announced further relief for victims of Hurricane Sandy. It’s been quite some time since we ran any Sandy-related news, but a recent decision by HUD gives these home owners some much-needed assistance. Many FHA borrowers were affected by that hurricane, and according to a press release issued by the FHA/HUD official site, “The U.S. Department of Housing and Urban Development today decided that HUD will not force thousands of New York and New Jersey homeowners to repay federal disaster recovery funds following a decision by the Federal Emergency Management Agency (FEMA) to increase flood insurance claim payments to families it initially underpaid following Hurricane Sandy.” According to HUDNo.15-144, federal law gives the Department of Housing and Urban Development the | more...

May 29, 2015

Texas Flooding, FEMA, and FHA Disaster Relief Options

By Joe Wallace

With headlines about Texas flooding, FHA borrowers there and in other areas in danger of being affected by natural disasters this spring may wonder what options are open to them in the wake of a flood, a hurricane, tornado or other weather event. The FHA and HUD do have options for qualified borrowers affected by a natural disaster. At the FHA/HUD official site, you’ll find the following: “Was your home or your ability to make your mortgage payments harmed by an event that the President declared a disaster? 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. | more...

April 1, 2015

Spring Thaw, Natural Disasters, and FHA Loans

By Joe Wallace

With the advent of spring comes melting snow, and in some areas that can mean flooding or worse. Some homeowners may find themselves in the way of rising flood waters because of spring showers, storms and other events. What can an FHA borrower do to prepare in case natural disaster strikes near them? The first thing to do is become familiar with the FHA loan natural disaster policy, found on the FHA official site at FHA.gov. That policy page includes the following introduction: “Was your home or your ability to make your mortgage payments harmed by an event that the President declared a disaster? 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 | more...

December 5, 2013

FHA Loan Down Payment Sources: Disaster Relief Grants and Loans

By Joe Wallace

Whenever a natural disaster strikes and the affected counties become federally-declared disaster areas, one source of help comes from FHA loan programs such as the FHA 203(k) Rehab loan. There may also be FEMA, state and local assistance for borrowers trying to recover from storm damage or other disaster-related problems. Some can’t rehab a damaged home and must look for a new place to live. When it comes to new purchase FHA loans, could certain types of disaster relief count as a legitimate source of down payment funds? If those sources meet FHA approval, the answer could be yes. According to HUD 4155.1, Chapter Five Section B, “Grants or loans from state or Federal agencies, such as the Federal Emergency Management Agency (FEMA), that provide immediate housing assistance to individuals | more...

May 23, 2013

FHA Announces Assistance For Homeowners in Oklahoma

By Joe Wallace

The FHA and HUD have announced disaster relief for victims of the recent tornado in Oklahoma. According to HUDNo.13-078, “HUD will speed federal disaster assistance to the State of Oklahoma in addition to resources being provided by Federal Emergency Management Agency (FEMA) and other federal partners. HUD will provide support to homeowners and low-income renters forced from their homes due to tornadoes and severe storms.” U.S. Housing and Urban Development Secretary Shaun Donovan has also reiterated current Federal Housing Administration policy, “that mortgage lenders should release insurance payments to homeowners rather than applying these funds toward outstanding mortgage debt” according to the press release. On Tuesday May 21, 2013, the President made a federal disaster declaration for Oklahoma counties including Cleveland, Lincoln, McClain, Oklahoma and Pottawatomi. A federal declaration allows | more...

December 5, 2012

New Hampshire Gets FHA/HUD Hurricane Sandy Relief

By Joe Wallace

New Hampshire is the latest state to receive FHA/HUD relief in the wake of Hurricane Sandy. On Monday, December 3 2012, the FHA and HUD issued a press release announcing foreclosure relief, FHA loans and refinancing plus other help for those recovering from storm damage. According to HUDNo.12-184, “U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of New Hampshire in addition to resources being provided by FEMA and other federal partners. HUD will provide support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.” Some may wonder why at takes time for all areas to get such disaster assistance from the FHA and HUD. The answer is simple–these benefits become available once an affected region | more...

November 30, 2012

FHA Foreclosure Protection, Home Loans and Refinancing For West Virginia Storm Victims

By Joe Wallace

The FHA and HUD have issued yet another Hurricane Sandy press release, this time announcing assistance for home owners in West Virginia affected by Hurricane Sandy. According to HUDNo.12-181, U.S. Housing and Urban Development Secretary Shaun Donovan has announced that FHA/HUD will “speed federal disaster assistance to the State of West Virginia in addition to resources being provided by FEMA and other federal partners. HUD will provide support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.” On Wednesday November 28, 2012, President Obama issued a disaster declaration for the following West Virginia counties: Barbour, Boone, Braxton, Clay, Fayette, Kanawha, Lewis, Nicholas, Pendleton, Pocahontas, Preston, Raleigh, Randolph, Taylor, Tucker, Upshur, Webster, and Wyoming. This federal disaster zone declaration allows HUD to offer foreclosure relief and other | more...