Natural Disaster FHA 203(h) Loans

Natural Disaster FHA 203(h) Loans

HOMEOWNERS

  • 100% Financing
  • No Money Down
  • Purchase - Refinance to Repair/Renovate -  Relocate
  • Flexible Credit & Documentation Requirements
  • Liberal Credit Guidelines for Late Payments due to the Disaster

RENTERS

  • First Time Buyer Plan
  • 100% Financing
  • No Money Down
  • Flexible Credit & Documentation Requirements
  • Relocate

Buy - Renovate -  Relocate

This Federal program for Disaster Recovery allows FHA to insure mortgages made to victims of a Presidentially-Declared Major Disaster Area (PDMDA) who have lost their housing (owners & renters) and are buying a house, or whose housing was damaged and are in the process of rebuilding. A 203(H) offers the following benefits to borrowers:

  • 100% financing for the purchase of a property.
  • Flexibility is allowed in credit, income, and asset documentation.
  • Flexibility is allowed in housing payment history analysis and liabilities as related to the destroyed residence.

Purchase a New Home

Why would someone want to buy a home right after they lost the home they lived in? It's hard to find temporary housing right now. Buying a home in a different location, could be more beneficial than the alternatives.

  • Allows for 100% financing - NO MONEY DOWN!
  • Borrowers are not required to purchase in the same area as the disaster.
  • If  your employment is also disrupted as a result of the disaster, you can relocate and get a new job.

For Renters - This program may unlock the door to Homeownership

Renters who were negatively affected by the disaster are also eligible to purchase a home  - including first-time home buyers. 

  • While you may have insurance on your possessions, most renters do not have coverage for the dwelling. It could take a long time for rental homes, apartment buildings, and condos to become available due to contractor and materials shortages.
  • This program could be the best (and easiest) path to homeownership and a chance to start over. Qualified buyers are permitted to move from the affected area, getting a new job may be a possibility as well.
  • No down payment and the ability to move can make homeownership a reality for many displaced renters.

Repair Your Home

  • One loan covers the mortgage on the property and necessary repairs - combining FHA 203(H) & FHA 203(K)
  • Repair the damage caused by the storm.
  • Make preventative improvements to avoid damage in the future.
  • There is no refinance "seasoning" requirements (if you refinanced recently).

Pathway is Here to Help

At Pathway, we're utilizing a program that will help those owners and renters in the hardest hit areas of Florida to start the process of getting their lives back to a measure of normalcy. The FHA 203H Program was created to help people who own or rent in a declared Federal Disaster area and are not able to live at their residence because it is not livable due to the storm.

FHA 203h Loan Limits: Max Loan Amounts will apply based on the county your dwelling was located in. If your loan amount exceeds the limits, no worry, we have other programs that may work for you.  FHA Mortgage Limit Search.

Documentation must be provided to verify that the borrower’s previous residence (owned or rented) was in the disaster area, and was destroyed or damaged to such an extent that reconstruction or replacement is necessary. If purchasing a new house, the house need not be located in the area where the previous house was located.
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Eligible FHA 203h Property Types:

  • Principal Residences – Single-Family Homes, PUD
  • One-unit detached homes
  • FHA-approved established condominium projects

Ineligible FHA 203h Property Types:

  • Investment Properties
  • Second Homes
  • Attached Properties
  • 2,3,4 Units
  • Manufactured Housing
  • Co-Ops, Condotels, Timeshare
  • Mobile and Manufactured homes are not eligible

Florida 203(H) Loan Eligibility:

  • 620 minimum FICO score. The credit requirements for this program are more relaxed when compared to standard FHA loans. Derogatory credit (missed payments, etc) as a result of the disaster and missed work is often overlooked.
  • Your previous residence must have been located in a Federally declared disaster location and be damaged to such an extent that rebuilding or replacing is necessary. Borrowers have up to one year from the date the disaster area was declared to apply. Be sure you can document residency, and also save any insurance claim forms, FEMA documentation, photos, and other important information if possible.
  • 203h loans are for principal owner residences only. There is an occupancy requirement for this program – investment homes are not permitted. The new home being purchased is NOT required to be in the same location. Example: your home in Fort Myers was destroyed and you want to relocate to Jacksonville – this is acceptable.

Documentation You Will Need

  • Proof of permanent residence in the affected area - Drivers License, Voter Registration Card , Utility Bills.
  • Proof of destruction of the residence - Insurance Report, Inspection Report by Independent or Government Agency, Appraisal Inspection, Conclusive photographic evidence showing the damage.
On September 29, 2022, a major disaster declaration was issued for the following Florida counties: Brevard (County) • Charlotte (County) • Collier (County) • DeSoto (County) • Flagler (County) • Glades (County) • Hardee (County) • Hendry (County) • Highlands (County) • Hillsborough (County) • Lake (County) • Lee (County)• Manatee (County) • Monroe (County) • Okeechobee (County) • Orange (County) • Osceola (County) • Palm Beach (County) • Pasco (County) • Pinellas (County) • Polk (County) • Putnam (County) • Sarasota (County) • Seminole (County) • St. Johns (County) • Volusia (County)

We'll Help You Make Informed Decisions

At Pathway, we focus on helping people and doing what is right for our borrowers. This means that we do not “sell” a loan to our customers. We educate them about the loan programs and the various options available, the good and the bad. We are committed to providing our customers with all the information they need to understand our loan process and make the right credit decisions. This way of doing business is ingrained in our company culture.

It's the mission of Pathway to truly help people by providing education and guidance in the mortgage process. We stay up-to-date on the mortgage industry and maintain high trust relationships with our clients, business partners, team members, and community. We are committed to integrity and excellence.

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