Special 100% FHA loan available for families whose homes were destroyed or damaged by Hurricane IKE!!!
• Borrower’s previous principal residence (as owner, renter, or resident household member) was located in a federally-declared disaster area (listed at www.fema.gov as eligible for individual assistance).
• Borrower’s previous principal residence was destroyed or seriously damaged, to such an extent that reconstruction or replacement is required.
• Borrower’s initial 203(h) purchase loan application must be dated within one year of the President’s declaration of the disaster,
• There are no special exceptions to the “one FHA loan” rule. If the former residence is encumbered by an FHA loan, borrower must satisfy that loan by sale or damage claim(s) prior to closing a new 203H purchase loan.
• Proof of permanent residence in the affected area before the disaster, such as a valid driver’s license, voter registration card, utility bills, etc.
• Conclusive documentation evidencing the destruction or extensive damage of the residence, such as an insurance report, or a property inspection report by an independent fee inspector, or government agency.
• Must be able to prove income
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Down Payment:
• Not required.
• DPA not allowed
• Closing costs may not be included in the loan amount.
Loan Term:
• 30 year only
Maximum Loan Amount:
• 100% of the lesser of sales price or appraised value, plus UFMIP.
• If not paid by the seller, closing costs and prepaids must be paid by the borrower in cash or by the lender through premium pricing. Closing costs may not be included in the loan amount.
Seller contributions:
• Seller contributions must not exceed 6% of the sales price.
• included in the 6% limitation is the payment of the UFMIP
FHA 203(h) Eligible and Ineligible Properties
Eligible Properties:
1-unit detached primary residences, detached PUD, and FHA approved condos.
Ineligible Properties:
1-unit attached primary residence, attached PUD, 2-4 unit primary residence, second homes, investment properties, co-ops, and manufactured homes.
