Posted on: 12th Oct, 2005 11:02 pm
The U.S Department of Housing and Urban Development (HUD) announced that it has a special mortgage program that will require no down payment for the victims of hurricane Katrina and Rita. This program will be available to those who have previously owned their properties as well as those who have stayed in rented properties. The 203(h) mortgage program will be offered by any HUD approved lender and can be taken against any property located anywhere within the United States.
The mortgage program called Section 203(h) insured by the FHA will be offered to those individuals whose properties are situated in a presidentially declared disaster area, where the residences require immediate construction or replacement. The maximum loan amount that HUD may insure ranges from $172,632 to $312,895 but this depends on the average sale price in the area.
It will be easier to qualify for the no down payment mortgage as the underwriting guidelines recommended by the FHA are quite lenient compared to mortgages offered by private lenders. Even the closing costs will be minimal and can be paid by the seller of the property or the lender. Moreover, the FHA mortgage insurance premiums can be included within the loan amount. Borrowers can pay an up-front insurance premium as well as monthly premiums. The up-front premium amounts to 1.5% of the loan amount and the monthly premiums include .5% of the mortgage amount.
One should apply for the 203(h) mortgage within a year of the President's declaration of the disaster. The applications are generally made through an FHA approved lender.
The mortgage program called Section 203(h) insured by the FHA will be offered to those individuals whose properties are situated in a presidentially declared disaster area, where the residences require immediate construction or replacement. The maximum loan amount that HUD may insure ranges from $172,632 to $312,895 but this depends on the average sale price in the area.
It will be easier to qualify for the no down payment mortgage as the underwriting guidelines recommended by the FHA are quite lenient compared to mortgages offered by private lenders. Even the closing costs will be minimal and can be paid by the seller of the property or the lender. Moreover, the FHA mortgage insurance premiums can be included within the loan amount. Borrowers can pay an up-front insurance premium as well as monthly premiums. The up-front premium amounts to 1.5% of the loan amount and the monthly premiums include .5% of the mortgage amount.
One should apply for the 203(h) mortgage within a year of the President's declaration of the disaster. The applications are generally made through an FHA approved lender.
any more info on 203h program?
Hi Nancy,
203h program allows federal housing administration to insure mortgage made by the qualified mortgage lender to the victims of the disaster who have lost there homes and are in process of rebuilding or buying a new home.
Through this program the government tries to help the victims of Hurricane by making it easier to take a mortgage and become a home owner or re-establish themselves as home owners.
Thanks,
jerry
203h program allows federal housing administration to insure mortgage made by the qualified mortgage lender to the victims of the disaster who have lost there homes and are in process of rebuilding or buying a new home.
Through this program the government tries to help the victims of Hurricane by making it easier to take a mortgage and become a home owner or re-establish themselves as home owners.
Thanks,
jerry
Hi Nancy,
Jerry has indeed provided some very good information. Here is some more information on 203(h) program.
203(h) program have some features that make homeownership easier.
There are no down payments required and the borrower is eligible for 100 percent financing. Closing costs and prepaid expenses should be paid in cash by the borrower or by the seller. They usually amount to 6% of the loan.
FHA mortgage insurance is not free. Lenders collect from the borrower an up-front insurance at the time of purchase as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.
However some fees are limited, for example the loan origination fee cannot exceed one percent of the amount of the mortgage excluding any up-front mortgage insurance premium.
God Bless You,
Thanks,
Samantha
Jerry has indeed provided some very good information. Here is some more information on 203(h) program.
203(h) program have some features that make homeownership easier.
There are no down payments required and the borrower is eligible for 100 percent financing. Closing costs and prepaid expenses should be paid in cash by the borrower or by the seller. They usually amount to 6% of the loan.
FHA mortgage insurance is not free. Lenders collect from the borrower an up-front insurance at the time of purchase as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.
However some fees are limited, for example the loan origination fee cannot exceed one percent of the amount of the mortgage excluding any up-front mortgage insurance premium.
God Bless You,
Thanks,
Samantha
Typical enough with everything that seems to good to be true so lies the snake in the grass even for this program. after doing further research on the subject and talking to lenders I had discovered that you would have to be in a CURRENT Job that you have had for 2 years.....Notice that I emphisised Current meaning you would have had to still be in that job.PFFFT Loop holes I feel like Im being run around by an insurance adjuster when i talk to an Fha Lender.Yah hmmm lets think about this anyone in a disaster or almost everyone has LOST there jobs due to the disasters,Like me My kind of work is no longer available in this area and I had to take up My old trade of Home restoration from 4 years ago and start remodling flooded homes again.But yet the only thing not letting me get this loan is the JOB issue.Either that or lenders are 2-steping around giving out a 0 down 100% financed home,since that is cutting into there profits,Im more likely to believe that.Especially since some lenders i spoke with denyed such a loan even existed.
Hi Sinicle_side,
It's really sad that victims like us are denied of loans by the lenders even after such a big calamity.
It's quite natural that many people have lost both their jobs and homes during this disaster. For that only HUD has announced such type of loan to help the victims.
But some of these lenders do not agree to the terms set for the loan and they do not want to show sympathy to the victims, which is quite inhuman. There should have been strict laws to force the lenders to follow the terms. I would suggest you look around for some more or write directly to HUD mentioning every possible detail.
I wish your recovery from the problem.
Regards,
Blue
It's really sad that victims like us are denied of loans by the lenders even after such a big calamity.
It's quite natural that many people have lost both their jobs and homes during this disaster. For that only HUD has announced such type of loan to help the victims.
But some of these lenders do not agree to the terms set for the loan and they do not want to show sympathy to the victims, which is quite inhuman. There should have been strict laws to force the lenders to follow the terms. I would suggest you look around for some more or write directly to HUD mentioning every possible detail.
I wish your recovery from the problem.
Regards,
Blue
Hi Sinicle,
I can feel your sufferings. A lot of people like us are facing the same problem due to some irresponsible behavior of the lenders.
I agree with Blue that you can try for some more. An alternative suggestion would be to make a call or write your problem to FEMA, an agency devoted to help people with loan requirements in case of a disaster.
Do share your experience with us so that we all can get a way out.
Sincerely I wish you good luck and early recovery.
God bless you.
Samantha
I can feel your sufferings. A lot of people like us are facing the same problem due to some irresponsible behavior of the lenders.
I agree with Blue that you can try for some more. An alternative suggestion would be to make a call or write your problem to FEMA, an agency devoted to help people with loan requirements in case of a disaster.
Do share your experience with us so that we all can get a way out.
Sincerely I wish you good luck and early recovery.
God bless you.
Samantha
I'M FROM HURRICANE KATRINA TRYING TO MOVE ON WITH MY LIFE FOR ME AND MY SON AN TRYING TO PUCHASE NEW HOME LIVING IN NOW I WANT PURCHASE BEFORE LEASE IS UP IN MARCH 2007
Hi Tiffany,
Welcome to the forums.
It's a good thing that you are trying to recover from the mishap. Indeed, the Katrina changed the course of the lives of thousands and till now, people are trying hard to get on with their lives and overcome the trauma that the hurricane brought about in their lives.
Well, it feels good to know that people like you are still fighting out to fulfill the dream of homeownership that you may have seen years ago. Now, before you buy a home, ask yourself whether you can afford the costs of homeownership.
If you are willing to take a mortgage in order to buy the home, well then figure out the probable costs and compare it with your income. If you think, there is some inconsistency, wait for a few months till you become financially strong to support the home buying and maintenance costs. Remember, you need to check each and every legal document that you sign while you buy a home. This is to ensure that you don’t fall into any trap in the buying process.
If you have any query related to the home buying process or if there is any financial issue that concerns you, feel free and frank to get the answers from our community.
Thanks,
Caron.
Welcome to the forums.
It's a good thing that you are trying to recover from the mishap. Indeed, the Katrina changed the course of the lives of thousands and till now, people are trying hard to get on with their lives and overcome the trauma that the hurricane brought about in their lives.
Well, it feels good to know that people like you are still fighting out to fulfill the dream of homeownership that you may have seen years ago. Now, before you buy a home, ask yourself whether you can afford the costs of homeownership.
If you are willing to take a mortgage in order to buy the home, well then figure out the probable costs and compare it with your income. If you think, there is some inconsistency, wait for a few months till you become financially strong to support the home buying and maintenance costs. Remember, you need to check each and every legal document that you sign while you buy a home. This is to ensure that you don’t fall into any trap in the buying process.
If you have any query related to the home buying process or if there is any financial issue that concerns you, feel free and frank to get the answers from our community.
Thanks,
Caron.