Home Destroyed By Ida? An FHA 203(h) May Help
If your home, or the home of someone you know, was damaged by Hurricane Ida to the point of being unlivable, there is a home loan solution which may offer you a bit of hope.
Rather than living with friends or family or waiting for government-provided temporary housing while you rebuild, it’s time to find out more about a program specifically designed for disaster relief - the Hud 203(h) program.
Introducing: FHA 203(h)
Many people have heard of Hud’s 203(k) program as it’s more widely used for purchasing homes where renovations are required.
However, the 203(h) program allows borrowers to purchase new housing as their primary residence after a natural disaster, with no down payment.
203(h) isn’t a new program, but it is seldomly used as it can only be accessed when, in our case here in South Louisiana, a natural disaster has been declared.
203(h) - Is It Right For You?
In order to be eligible, you must reside in an area designated by the President of the United States as a disaster area, and your home must have been damaged or destroyed to the extent that major reconstruction or even replacement is necessary.
This lending program allows you to purchase a new residence as your new primary residence.
As part of your loan process, you will be asked to provide sufficient evidence your home was destroyed in Ida, and you must provide proof of your FEMA claim.
However, our dedicated team will help you gather these, and all the necessary documents needed to proceed with your loan. You can always count on our team to guide you through the process, making it as easy as possible for you.
We understand that you may be unsure what to do given what everyone in our region has been through. It’s OK to take your time and decide what’s best for your family.
Generally speaking, borrowers have up to one year from the date the disaster area was declared to apply for a 203(h) loan.
However, given the current real estate market conditions prior to the storm where houses are selling quickly and pre-qualified borrowers given preference on offers, we would suggest starting the process as quickly as possible.
Meet with one of our mortgage lenders near you to get all the details of this helpful program as it may apply to your specific needs. We’ll be happy to give you more information, quote an interest rate or even get you pre-qualified if you’d like to start looking around at your housing options.
And remember, no matter what option you choose, Gulf Coast Bank is the bank that cares about you!