Hurricane Chasing in the Carolinas

[Chris Mason]

This is mostly directed at Realtors, but anyone impacted by the disaster in North and South Carolina might find it useful too.

https://www.hud.gov/program_offices/housing/sfh/in...

Everyone knows about FHA 203(b) because that's a normal FHA loan, and most here know about FHA 203(k). Whenever there is a federally declared disaster area, a new option opens up called FHA 203(h). It's available for one year from the disaster declaration date.

Eligible Customers:

Anyone whose home has been destroyed or severely damaged in a Presidentially declared disaster area is eligible to apply for mortgage insurance under this program.

Note that it doesn't say "homeowner," it says "anyone." Including someone who has been a renter for the last 10 years who had their apartment damaged to the point of being uninhabitable. The housing that was destroyed has to have been destroyed by the disaster, but the home being purchased can be anywhere. 

Features:

- Incredibly flexible with credit. A mortgage late 2 months ago is not an automatic deal-breaker. "Dear Underwriter, my mortgage bill was on my kitchen table, which was destroyed in the hurricane."

- 100% financing. 

- No income limits or anything like that.

- Any lender that already does FHA loans, is automatically approved to offer.

- The home being purchased can be anywhere, not just in the disaster area.

- Can in theory stack the 203(h) provisions on top of 203(k) and do reno w/ 100% financing, but I personally have never done this and thus will not comment on it. Seems implausible, given how busy local general contractors are about to be, that you will find a good one willing to play ball with 203(k). 

- Otherwise generally very similar to a normal FHA loan.

Realtors in the Carolinas, tell your go-to lender to get schooled up if they aren't already, and go make some homeless people into homeowners.