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Rebuild or Purchase a new home with 0% Down.


The FHA 203 (h) loan program is here to help.  It can be used by homeowners or renters in a disaster area to rebuild a destroyed home or purchase a new property in the same or different area - with NO money down. 


This is one of the few 100% purchase financing options available.  It is available to existing homeowners as well as first time home buyers to purchase a new property with no money down.  It makes it easier for victims of disaster to become homeowners and have a safe, permanent place to live.  


In the immediate aftermath, victims will likely seek temporary housing and in the short term re-establish their own safety and that of their loved ones.  Once the situation becomes stable, it will be time to shift the focus to a permanent living solution.  The program allows time for this process and is available up to a year after the disaster area is declared. 


The program also benefits the local communities.  Recovery is slowed when residents choose to leave and settle somewhere else.  This program encourages victims to remain, commit to rebuilding, and provides them a financial tool to do so.  Local businesses then can continue to operate as they retain access to employees and customers.  Schools continue to have enrollment so they will continue to receive funding.  Overall a sense of resiliency and pride in the community is fostered and grows.    

  • Purchase or reconstruction of owner-occupied single family homes.​

  • Up to 100% financing available

  • Seller paid closing costs permitted, up to 6%

  • Credit will be manually underwritten.  Late payments may be ignored from the analysis if they take place after the date of the disaster and are found to have been caused by the displacement. 

  • Choose from Fixed Rate or 5/1 Hybrid ARM.

  • 10 year, 15 year, 20 year, 25 year and 30 year term options available.

  • Single Family Residence, manufactured, FHA Approved Condos.

  • Primary Residence Only - borrower must intend to live in the home as their primary residence.

  • 500 minimum FICO credit score. 

  • Mortgage Insurance Premium and maximum mortgage amounts are the same as those for Section 203(b) mortgages.


* It is still necessary for the borrower to be approved for the new loan and to demonstrate that it will be affordable for the borrower.  Income, assets, liabilities and credit history will be evaluated, as will the market value and condition of the property to be financed.  If rebuilding, the value taken into consideration will be the amount that the home will be worth in the current market once it is complete. 

**Underwriting can be slightly more flexible for FHA 203 (H) loans as some of the traditionally required documentation may have been damaged or destroyed in the disaster.  Credit and Payment history will be considered satisfactory if the credit report indicates satisfactory credit prior to the disaster.  The FHA will accept W-2s and tax returns from the IRS to confirm prior employment and income if records were destroyed.  Asset statements may also be downloaded from the borrowers financial institution if traditional documentation statements were destroyed in the disaster.  


  • Available to renters, as well as, homeowners.

  • Renters who are displaced by a disaster may be eligible to purchase a new home with 100% financing through this program, and exempt from the 3.5% down payment requirement that comes with the standard FHA loan.

  • Does not need to be used right away.

  • In the days and weeks immediately following a disaster it may not be possible or prudent to focus on the next steps towards establishing long term housing or homeownership. Thankfully, eligibility for this program begins as soon as the US President declares the disaster, and remains for one year from that date of declaration.

  • Can choose to rebuild or move on.

  • Financing can be used to either rebuild a home that was destroyed, or to buy a new property.


  • ​Previous residence (owned or rented) must have been located in a Presidentially Declared Major Disaster Area (PDMDA) and destroyed or damaged to such an extent that reconstruction or replacement is necessary.

  • The purchased or reconstructed property must be a single family property or unit in an FHA-approved Condominium project.

  • The new residence being purchased does not need to be located in the PDMDA where the previous house was located. 


If the FHA 203(h) loan does not meet the needs of the scenario, there are a few other options that may be a better fit: