Disaster Loan

100% Financing

What is it? A mortgage available to victims of a Presidentially-Declared Major Disaster Area (PDMDA) in this case Hurricane Michael, for the purchase of a Single-Family Property , existing manufactured home, or FHA approved condo.

How does it help?

  • You do not need any down payment.

Highlights of the program.

  • The Property purchased must be the Borrower’s Primary Residence.
  • The previous residence (owned or rented) must have been located in a PDMDA and destroyed or damaged to such an extent that reconstruction or replacement is necessary. Please refer to the red-shaded areas on the Map Below for PDMDA areas. .
  • The new property DOES NOT have to be in the same city or state as the destroyed or damaged property. The Borrower is not required to make a down payment. The maximum loan is 100% of appraisal or purchase price, whichever is lower.
  • The case number must be assigned within one year of the disaster. For example, for Hurricane Michael this would be by October 11, 2019 unless extended. This means you must have a contract to us for the purchase of the new property prior to this date.
  • The closing costs must be paid by the borrower or seller. The seller can contribute up to 6% towards closing costs. We can help advise you on how to do this.
  • The Borrower must have a minimum credit score of 580. In many cases we can help improve your credit score.
  • When a Borrower is purchasing a new house, we may exclude the Mortgage Payment on the destroyed residence. In order for us to exclude the Mortgage Payments from the liabilities, we must have Information that the Borrower is working with the servicing Mortgagee to appropriately address their mortgage obligation, and apply any property insurance proceeds to the Mortgage of the damaged house.
  • We must document and verify that the Borrower’s previous residence was in the disaster area, and was destroyed or damaged to such an extent that reconstruction or replacement is necessary. Documentation attesting to the damage of the previous house must be provided during the loan process.