Section 203(h) Single Family Insurance For Disaster Victims

What is the purpose of this program?
Provides mortgage insurance for a person to purchase a principal residence after being displaced by a disaster. The residence to be purchased need not be located in the same area as the disaster.

What are the eligibility requirements?

• Borrower must meet standard FHA credit qualifications.
• Borrower's previous residence must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary. The borrower may be the owner of the property or a renter of the property destroyed.
• Borrower is eligible for 100% financing. No down payment is required. The up front mortgage insurance premium can be financed into the mortgage and the borrower will pay an annual premium.
• Borrower must purchase a one family unit; two, three, and four unit properties may not be purchased under this program.
• Adjustable rate mortgages cannot be used with this program.
• The maximum mortgage amount for a single family unit is $155,250. Lesser limits may be applicable in other areas.
• The borrower's application for mortgage insurance must be submitted within one year of the President's declaration.