FHA 203H loans
FHA 203H loans allow you to purchase another home with zero down 100% financing in the event your home was destroyed, severely damaged, or is no longer live-able and is located 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.
No down payment required for both Homeowners and Renters whose homes were destroyed or severely damaged. Purchasing another home using the FHA 203H does have some advantages vs other loan programs after a disaster, the program allows some leniency in the guidelines for the underwriters, as it is designed to help folks who have experienced hardship after losing their home in a disaster. We understand that life has dealt you a tough hand, and would like to do all we can to help.
The new home does not have to be located in the same area. In fact, your new home can even be in another county or another state if your employment or income situation allows.
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.
- You have up to 1 year after the disaster to purchase your next home with this program.
- The Underwriter is required to document and show proof of the destroyed property and related FEMA claim.
- Sellers can contribute up to 6% towards the buyers closing and settlement costs.
- Standard FHA Mortgage Insurance applies to the FHA 203H just like regular FHA 203B loans.
- 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:
- Hurricane
- Wildfire
- Tornado
- Severe Storm
- High Water
- Tidal Wave
- Earthquake
- Tsunami
- Volcanic eruption
- Landslide
- Mudslide
- Snowstorm
- Drought
- Fire
- Flood
- 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.
The FHA Loan Limits do apply to FHA 203H Disaster Relief loans as well. Here is a quick peak at a handful of California County FHA Loan Limits for 2025:
Los Angeles $1,209,750
Orange County $1,209,750
San Diego $1,006,250
Ventura $1,017,750
Riverside $ 672,750
San Bernardino $ 672,750
If you are interested in any other California County FHA Loan Limits - please click here.
These FHA Loan Limits are for Single Family Homes, Condos, and PUD's.
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