People who own or rented homes in presidential designated disaster areas may be eligible for Disaster Assistance Loans with zero down payments. The Section 203 (H) program makes it easier for victims to get mortgages. Only single-family homes and FHA-approved establish condominium projects are eligible for this program. The new Disaster Assistance Loans may only be used to finance principal residences.
Both property owners and renters are eligible for Disaster Assistance Loans. Renters can become homeowners and previous owners can get re-established as homeowners.
Qualified applicants are eligible for 100-percent financing. In other words, they need little or no cash on hand. Some restrictions apply. The qualifying credit score must be at least 620. The program will accept the middle score of three credit scores or the lower of two. Only traditional credit is permitted. The Maximum debt-to-income ratio or DTI allowed is 31/43 percent. With acceptable documentation, any existing house payments can be ignored.Applicants must provide conclusive evidence that they have been permanent residents in the affected areas and that their residents has been destroyed. (Alternative loan programs in Section 203(k) address the rehabilitation of severely damaged properties.) Disaster Assistance Loans provide highly beneficial programs that expedite home-purchasing transactions for victims whose homes have been substantially damaged.
The only financial responsibilities are the costs of closing and prepaid expenses. The applicant may pay these expenses by arranging for premium pricing to cover them. The seller may also contribute. There is a six percent limitation on seller concessions. Gift funds are not permitted.
The program stipulates Eligible Terms for Disaster Assistance Loans. Only fully amortizing programs qualify. All loan products must be either 10-year-fixed, 15-year-fixed, 20-year-fixed, 25-year-fixed, or 30-year-fixed loans. Mortgage insurance premiums are paid upfront and monthly.
Find out more by contacting Taylor Mortgage Group
For information about creative solutions for Disaster Assistance Loans, other home loans, reverse mortgages, and other mortgage products used to develop housing, businesses, industries, and cooperatives, call Taylor Mortgage Group LLC at 303-339-5950 or Janie Taylor 303-884-9393