Housing Disaster Assistance

When disaster strikes, it is important to understand the options available to ease the recovery process. While insurance companies and the Federal Emergency Management Agency (FEMA) are always the first points of contact for assistance, many times, they do not cover the full cost of rebuilding or purchasing a new home.

Prospect Mortgage has two programs available to assist in federally declared disaster areas, and we may be able to close the gap between FEMA assistance and what insurance covers.

For Homeowners and Renters Who Need to Move
Homeowners and renters may be able to buy a different home with no money down. The previous residence must have been in the disaster area and is now not habitable.

• Receive 100% financing, no money down on a home purchase.
• Single-family homes and approved condos are eligible (vacation and investment properties are ineligible).
• Must be within one year of the disaster.
• Loans will be made through the FHA 203(h) program.

For Homeowners Who Need to Repair or Rebuild Their Home
Loans are available to either repair or rebuild, and the loan limits are based on the home's value after work is completed.

• Up to 97.75% of the home's expected post-completion value may be financed.
• Insurance settlements and any FEMA grants can reduce the needed loan amount.
• Repairs can range from minor to major renovation (replace roof, repair deck, etc.).
• If the current loan exceeded the value of the property prior to damage the homeowner would need to find additional funds to close.
• Loans will be made through the FHA 203(k) program.
• I am available to talk through options and provide any additional guidance to those who may need it. Feel free to forward this information to anyone you know who may need assistance.

  Useful links:

  FEMA: http://www.fema.gov Phone: (800) 621-FEMA (3362)

  American Red Cross: http://www.redcross.org Phone: (800) RED CROSS (733-2767)