Presidentially Designated Disaster Area
With designation of our local area as a federal disaster area, due to the tornado outbreak of April 27, 2011, effected residents may now qualify for FHA mortgage insurance under Section 203H of National Housing Act.
This is a direct benefit for those who lost their residence during the storms either by destruction or severe damage. Insurance may likely payoff existing mortgages but to rebuild or relocate still requires many to obtain an another mortgage.
203H Benefit Summary
- No Down payment Required with 100% financing
- Sellers may pay up 6% of closing cost
- Lender fees are limited e.g., 1 point only for loan origination fee
- For more information visit Mortgage Insurance for Disaster Victims.
For More Information
Of course one will still have to financially qualify for the new mortgage and there is some question regarding extending the benefit to your own personal circumstances. For example even if you were renting your storm damaged residence, you may still qualify for a 100% mortgage if you choose to relocate and purchase a new home. Today’s local FHA mortgages rates average 4.25%.
As always don’t hesitate to give us a call 256-425-1659 or drop us an email and we can have one of our associated mortgage professionals assist you in determining your eligibility.