FHA 203(h) For Disaster Victims

This program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to 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 designated disaster areas recover by making it easier for them to purchase a new home to occupy if their existing home is affected by the disaster. The new mortgages may be used to finance the purchase of a one-family home that will be the principal residence of the applicant. The applicant is eligible for 100% financing. Therefore, no down payment is required. Closing costs and prepaid expensed must be paid by the applicant, paid through premium pricing or by the seller, subject to a 6% limitation on seller concessions.