FHA 203H loans

FHA 203H loans allow you to purchase another home with zero down 100% financing in the event your home was destroyed or severely damaged in a Presidentially Declared Disaster Area.

The FHA 203H is a disaster relief loan allows you to secure another path to rebuild your life after losing a home to a disaster such as a Hurricane, Wild Fire, Tornado, or other Severe Storm.   Both homeowners and renters whose homes were destroyed or severely damaged can qualify to purchase another home using the FHA 203H loan with no down payment required.    The new home does not have to be located in the same area, and can even be in another county or another state.   

We suggest ensuring that you work with your mortgage servicer on the destroyed home to quickly enter into a forbearance plan and then negotiate the final claim to protect your credit scores.  This program does allow some latitude for late payments, as long as they are only after the date of the loss.   

  1. You have up to 1 year after the disaster to purchase your next home with this program.
  2. The Underwriter is required to document and show proof of the destroyed property and related FEMA claim.
  3. Sellers can contribute up to 6% towards the buyers closing and settlement costs.  
  4. Standard FHA Mortgage Insurance applies to the FHA 203H just like regular FHA 203B loans.
  5. Standard closing costs apply

The previous, destroyed home may have been rented or owned and the damage must be extensive enough that the home must be replaced, rather than just simple repairs required.

Here are some of the types of disasters that may result in a Presidentially Declared Disaster Area:

  1. Hurricane
  2. Tornado
  3. Severe Storm
  4. High Water
  5. Tidal Wave
  6. Earthquake
  7. Tsunami
  8. Volcanic eruption
  9. Landslide
  10. Mudslide
  11. Snowstorm
  12. Drought
  13. Fire
  14. Flood
  15. Explosion

Remember, your new residence can be in any jurisdiction, you are not restricted to your current County or State.   FHA 203H loans are available across state and county lines if you choose to rebuild your life in a new city or town.    

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