How about some much needed MONEY for REPAIRS???
If you have clients who have suffered damage from the Memorial Weekend Tornadoes – they likely would like to know about ANY programs that can assist them as they work to rebuild. Lisa Seibert, one of our Strategic Partners at USA Mortgage, provided some details on an FHA 203(k) loan that could help:
If a homeowner or renter’s primary residence was destroyed, they are eligible for 100% financing through the FHA 203(h) program.
Here are few key items to note about FHA 203(h) financing for disaster victims:
- FHA 203(h) Mortgage for Disaster Victims is a loan program for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home. The program helps victims in Presidentially-Declared Major Disaster Area (PDMDA) recover by making it easier for them to get mortgages and become homeowners or re-establish themselves as homeowners.
- A 203(h) loan is available to any borrower whose primary residence, either owned or rented, was destroyed in a disaster.
- Documentation attesting to the previous residence damages must accompany the mortgage application.
- We cannot use the 203(h) program to refinance a home. If the homeowner needs repairs, we can look at a 203K loan.
- This program allows for 100% financing, however closing costs and and prepaids must be paid from borrower funds, including gift funds, or other eligible sources of funds.
- Gift funds are allowed to cover closing costs and prepaids as HUD considers gift funds to be the borrower’s own funds.
- Seller/interested party concessions of up to 6% are permitted.
Montgomery County residents who do NOT live in the city of Dayton or Kettering may be eligible for down payment assistance through the Home Ownership Center. I’ve attached a flyer. Greene County does not provide down payment assistance.