HUD Offers 100% Financing Program to Florida Residents!
President Bush declares Florida disaster area:
Here in Central Florida, we have been declared a national disaster area at least three times in the last few months by the President. Once for each of the major hurricanes (Charley, Frances and Jeanne) whose presence we have been graced with. Cumulatively, thousands of people have lost their homes.
HUD program offers No Down Payment Loan to assist in relief effort:
In an effort to provide some relief, our Federal Government has a loan program to assist in the rebuilding process. The Department of Housing and Urban Development (HUD) offers a No Down Payment loan for victims of federally declared disaster areas. This loan was designed to encourage and to ease the cost of rebuilding to a certain extent and to assist those currently renting, which lost their homes, to purchase a home with no money down.
Program is available to renters as well as homeowners:
In order to qualify, your home must have been located in an area designated by the President as a disaster area and it must have been either destroyed or severely damaged to the extent that reconstruction or replacement is necessary. Here is some exciting news: You do not have to be a homeowner to take advantage of this opportunity! If the home that you were renting was damaged or destroyed by the hurricane, you could qualify. In fact, with interest rates remaining at historic lows, it is possible that you could purchase your first home for about what you are paying in monthly rent, without paying any money out of pocket.
Closing costs may be included in the loan:
In order to make the home buying process easier, even the closing costs may also be included in the loan amount. This, combined with an allowable seller contribution can make this a true “no money down” loan. A typical FHA insured loan, called a 203(b), requires the buyer have a minimum of 3% of his own money into the transaction. This “disaster relief” loan, called a 203(h) loan makes homeownership even easier by reducing this required contribution to zero, nothing, nada! Additionally, this loan may be used for either new construction or for the purchase of an existing home giving the borrower flexibility in their home buying decision. There are no restrictions on where you buy either. That means that if you previously lived in Volusia County, but now want to move to Iowa, that can work under this loan program.
The maximum loan amount for this program is about $161,000 in many counties and most other guidelines are identical to the traditional FHA 203(b) loan program. Please consult with your lender for specific details.
Since most of the counties in Florida have been included in the disaster declaration, there is a very good chance that you may qualify if you have lost your home. Of course you will need to provide written evidence that you lost your home during one of these “disaster events” along with your loan application. That evidence can be in the form of the colored sticker that FEMA sticks on the door of those homes that have been declared unfit for habitation.
You have up to 1 year to file an application:
Further, the time frame for qualification is one year from the date of Presidential declaration of the disaster. However, you can file an application for a new loan even before the paperwork on your insurance claim has been settled.
Rent for $1 per month:
For those that just want to wait it out a bit, HUD has another little known, lesser-used policy that may be available. FHA has the ability to make their acquired properties available to disaster victims during an emergency period under a month-to-month lease for as little as $1 per month. This may assist you while you are looking for your new home or while you are waiting for your home to be built or repaired. This can be a tremendous service to victims of natural disasters.
In the midst of many thorns, there stands a rose. The 203(h) loan program can be just such a rose for many who have been through such a difficult event as the loss of their home and yet they are committed to rebuild their lives and move on.
Help For Florida Tornado Victims
There are no articles related to this one.
|