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Program Overview

  • Available to anyone whose home has been destroyed or severely damaged in a Presidentially Declared Disaster area.
  • The property could have been owned or rented.
  • No down payment is required. Borrowers are eligible for 100% financing.
  • If purchasing a home, the house does not need to be located in the area where the previous house was.
  • Current mortgage can be delinquent IF the late payment(s) were the result of the disaster AND they were not more than 1 month delinquent at the time of the disaster and or in the previous 12 months.
  • Minimum 640 credit score.

The FHA Section 203(h) program provides home financing to victims of any major disaster who have had their homes substantially damaged.  FHA 203h loans are designed to help homeowners rebuild after any type of damage, be it from wind, flood or fire.


  • The FHA section 203(h) program allows FHA to insure mortgages through approved lenders and banks to victims of disasters whose homes have received substantial damage.
  • This program helps victims in federally designated disaster areas recover by making it easier for them to get mortgages, to either become homeowners or re-establish themselves as homeowners.
  • The borrower’s application must be submitted to the lender within one (1) year of the President’s declaration of the disaster.
  • Any eligible home that has been destroyed in a federally declared disaster area is eligible to apply for mortgage insurance under this program, whether they owned the home or were renting it.
  • This program is being offered for both purchasing and refinancing.


  • Financing for eligible borrowers may be up to 100% of the sales price.
  • 15-year and 30-year fixed terms are available as well, with no adjustable rate terms.
  • The premium pricing can be used by the borrower, home seller or lender to pay closing costs.
  • Section 203(h) loans require mortgage insurance premiums (MIP) the same as regular FHA loans. This will most often be added to the borrower’s loan amount, although the option to pay upfront is available.


  • The borrower must have a 620 minimum FICO score, lender “overlays” may also apply.  The credit requirements for this program are more relaxed than standard FHA loans, derogatory credit (missed payments, etc.) as a result of the disaster and missed work is often overlooked.
  • Your previous residence must be located in a Federally declared disaster location and be damaged to such a point that requires rebuilding or replacing. Remember, borrowers must apply within one yearof the date of the declaration of the disaster. Be sure to save any insurance claim forms, FEMA documentation, photos, and other important information if possible so you can document ownership.
  • 203h loans are reserved for principal owner residences. There is an occupancy requirement, and investment homes are not eligible. However, those who wish to relocate are still eligible.

Eligible FHA 203h Properties Types:

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

Ineligible FHA 203h Property Types:

  • Investment Properties.
  • Second Homes.
  • Attached Properties.
  • Multiple Units, including two, three, and four units.
  • Co-Ops, Condotels, or Timeshares.
  • Mobile/Manufactured.