Topic: Mortgage News
WASHINGTON -- Oct. 13, 2005 -- The Department of Housing and Urban Development (HUD) announced that HUD has a mortgage financing program that requires no downpayment for people whose homes have been destroyed or damaged due to Hurricanes Katrina or Rita. In addition to requiring no downpayment, potential homeowners can live anywhere they choose in the United States.
"HUD is committed to helping people affected by these terrible disasters to re-establish their lives," says HUD Secretary Alphonso Jackson. "We want to give these families and individuals an opportunity to start over -- as homeowners -- whether they owned or rented their previous residences."
Under the special mortgage program, called Section 203(h), HUD, through the Federal Housing Administration (FHA), will insure mortgages for individuals or families in a presidentially declared disaster area whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary.
Borrowers must be able to qualify for FHA mortgages, which are generally easier to qualify for than those on the private market, but they will not have to put any cash down. In addition, the FHA mortgage insurance premiums can be financed into the mortgage amount, so only minimal closing costs would be required.
An added benefit of the 203(h) mortgages, which are offered by any FHA-approved lender, is that they can be used anywhere in the U.S. For example, Katrina victims from Louisiana can choose to move wherever they wish. The mortgage amount is limited, but can be as much as $312, 895, depending on the average sales prices in the area.
For More Information on 203(h), contact a HUD-approved lender, the HUD National Servicing Center Hotline at 1 (888) 297-8685, or HUD's Web sites: www.hud.gov and espanol.hud.gov
? 2005 FLORIDA ASSOCIATION OF REALTORS?
Posted by trishjax
at 9:30 AM EDT
Updated: Saturday, 15 October 2005 9:33 AM EDT
