FHA 203(h) HomeBuyer disaster relief

The previous residence, whether owned or rented, must have been situated in a Presidentially Declared Major Disaster Area (PDMDA) and suffered destruction or damage to the extent that reconstruction or replacement is necessary. The Federal Emergency Management Agency provides a list of the specific affected counties and cities corresponding to disaster declarations. Click here.

The Section 203(h) program enables the FHA to insure mortgages for victims of major disasters who have lost their homes and are in the process of purchasing another property. This program supports victims in Presidentially Declared Major Disaster Areas in their recovery by simplifying the process of obtaining mortgages, allowing them to become homeowners again or re-establish their status as homeowners.

No down payment is required, allowing borrowers to finance 100% of the purchase price. Closing costs can be handled by the borrower, through premium pricing, or covered by the seller, up to 6% of the sales price. A minimum credit score of 580 is necessary. Additionally, the home or rental must have been destroyed or severely damaged and needs to be located in a Presidentially-Declared Major Disaster Area (PDMDA). A manufactured home with land is also acceptable. 

Do you have more questions? Feel free to reach out to Peter Knap at 404-276-4268 or pknap@guildmortgage.net.