FHA 203 (H) for Disaster Relief

If you’ve lost a home from any of the devastating fires in California you may be able to qualify for the FHA (H) loan program. It’s designed to help home owners who suffer from major disasters that are federally designated a disaster area. It features relaxed eligibility requirements such as:

  • No required down payment.
  • Loan to Value (LTV) is 100%.
  • 620 minimum required FICO score.
  • If your home was destroyed and you want to purchase another home, the underwriter may not include the mortgage of your lost home in your debt to income ratio in the qualifying calculations. Certain requirements apply*
  • The underwriter may disregard any late payments to the destroyed home if they were a result of the disaster itself and the home owner can show there were no 3 or more months of late payments prior to the disaster.

*The borrower is working with the current servicer of the loan to address the current mortgage obligation. The property insurance proceeds will be applied to the mortgage of the destroyed property, or if the home owner is no longer obligated to pay the mortgage.

This loan is also open to Renters that were burnt out in the Camp, Card or Woolsey fires in 2018.

Contact me to find out the details. Tim Kemper 530-377-5394.