Mortgage Insurance for Disaster Victims

This program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of major disaster who have lost their homes and are in the process of  buying another home. This program helps victims in Presidentially Designated Major Disaster Areas (PDMDA) 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 mortgage 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 expenses must be paid by the applicant through premium pricing, or by the seller (subject to a 6% limitation on seller concessions).

PROGRAM HIGHLIGHTS
  • 600 Minimum qualifying credit score
  • 15 and 30 Year fixed terms
  • No down payment is required
  • 100%LTV, Plus Financed UFMIP
ELIGIBLE TRANSACTIONS
  • Primary transactions only
  • Single Family Residences, FHA Approved Condominiums and PUDs
PROGRAM REMINDERS
  • The FHA case number must be assigned within one year of the date of the PDMDA
  • All 203(b) guidelines apply in addition to 203(h)
Qualifying Criteria: The borrower must provide conclusive evidence that their previous residence was located in a disaster area and was destroyed or damaged to such an extent that replacement is necessary. Documentation showing a permanent residence in the affected area before the disaster includes a valid driver’s license, a voter registration card, utility bills, etc. Documentation regarding destruction of the residence may include an insurance report, an inspection report by an independent fee inspector or government agency or conclusive photographic evidence showing the destruction or damage. The borrower may have been the owner or a renter of the property affected. 

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