FHA 203h - Disaster Victims Program

This program offers 100% financing (purchase only) to individuals or families whose residences, whether owned or rented, were located in a Presidential-declared disaster area and is destroyed or damaged to such an extent that reconstruction or repair is necessary. The new home does not have to be located in the area where the previous home was located.

FHA 203(h) Eligible and Ineligible Properties

Eligible Properties:

1-unit detached primary residences, detached PUD, and FHA approved condos.

Ineligible Properties:

1-unit attached primary residence, attached PUD, 2-4 unit primary residence, second homes, investment properties, co-ops, and manufactured homes.

Credit History

If the credit report indicates satisfactory credit prior to a disaster and any derogatory credit subsequent to that date can be related to the effects of the disaster, FHA will consider, for its underwriting standards, that the borrower is a satisfactory credit risk.

Disaster victims with Secretary-held mortgages are eligible for new FHA-insured mortgages provided the borrower is current with the forbearance agreement at the time of the disaster and all payment for the preceding twelve months were made within the month due.

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