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FHA 203H Disaster Victim Loan

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When you're buying a home, you have a lot of different options. Using a FHA loan, Georgia residents can often obtain a mortgage more easily than they could without this program. If you have lost your current home due to a disaster, you may even qualify for a special FHA mortgage called a FHA 203H loan. Here's a look at those FHA requirements.

What is a FHA 203h Loan?

A 203H loan is a special version of a FHA loan made for disaster victims, specifically people who lost their home in a Federally Declared Disaster Area.

Individuals are eligible for this program if their homes are located in an area that was designated by the President as a disaster area and if their homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary. Insured mortgages may be used to finance the purchase or reconstruction of a single-family home that will be the principal residence of the homeowner. Like the basic FHA mortgage insurance program it resembles, Section 203(h) offers features that make recovery from a disaster easier for homeowners.

What Are the FHA Housing Requirements for 203H Loans?

To obtain a FHA loan, Georgia residents must buy certain types of homes. In particular, these loans can usually only be used for single-family homes or multi-family dwellings with up to four units, and the person who obtains the FHA loan must reside in the home as their primary residence for a certain number of years. You can also use these loans to buy homes in government-approved condominium developments. On top of these requirements, the home generally needs to be on a foundation. As a result, you may be able to use a FHA loan for a modular home placed on a foundation but not for a mobile trailer.

Why Choose a FHA 203h Loan?

When considering an FHA loan, Georgia residents may want to look into the 203H program for the following benefits:

  • No downpayment is required. With a traditional FHA loan, you usually need about a 3% down payment.
  • The borrower is eligible for 100 percent financing. 
  • Ability to either rebuild the current home or purchase another home elsewhere.
  • The borrower can be a prior homeowner or renter
  • FICO Credit scores down to 580

This loan is one of the few options for borrowers severely affected by natural disasters. If your current property is gone due to a disaster, this loan allows you to either reconstruct your home or purchase in a new area away from the disaster area. It's important to act quickly because the borrower's application for mortgage insurance must be submitted to the lender within one year of the President's declaration of the disaster. The current FHA mortgage limit can be viewed online. These figures vary over time and by place, depending on the cost of living and other factors (higher limits also exist for two to four family properties).

To learn more about an FHA loan Georgia residents should contact us directly. Or, if you would like to explore fixed rate mortgages or other mortgage products available from BrightPath, please call us at 888-222-6003, or complete our simple form below. One of our experienced mortgage specialists will contact you.



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FHA 203H Disaster Victim Loan

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