loanDepot, announced its plans to help families impacted by flooding and damage from hurricanes Harvey and Irma by introducing a FHA-203(h) product for those who need to rebuild or repair a destroyed or damaged home as well as for those needing to buy a replacement home.
This FHA-203(h) Mortgage Insurance for Disaster Victims product is specifically designed to help those within Presidentially-declared major disaster areas (PDMDA) in urgent need of home repairs, a full rebuild, or to purchase a new home. The 203(h) product guidelines may allow loanDepot to disregard any late payments that were the result of the destroyed or damaged property in specific PDMDA areas. Additionally, it provides more flexibility on documentation of employment, assets and liabilities in cases where records were destroyed by the disaster.
“Due to the scope and severity of the disasters, we felt it necessary and important to help families get back into homes as quickly as possible,” said Anthony Hsieh, loanDepot CEO and Chairman. “When I visited Texas and Florida and saw the devastation with my own eyes, I immediately knew that we needed to act quickly to support families in need. Not only have we donated to the American Red Cross and supported local diaper banks, but we’re using our expertise to help homeowners navigate the system so repairing, rebuilding or purchasing of homes can happen quickly to ensure a more rapid recovery allowing homeowners to rest easier.”
For those needing repairs, the FHA-203(h) product can cover repairs such as:
>>Repair/replacement of roofs, flooring, gutters
>>Repair/replacement of existing plumbing and electrical systems
>>Painting (both interior and exterior)
>>Purchase and installation of major appliances such as stoves, refrigerators, washer/dryers, dishwashers and microwaves.
>>Accessibility improvements for persons with disabilities
>>Window/door replacement and exterior wall re-siding
>>Other repairs to make the home safe and livable
For those renters or owners who need to purchase a new home, FHA-203(h) allows for a zero-dollar down payment if their current home was damaged or destroyed. Existing homeowners will need to document sufficient insurance coverage to pay off the existing mortgage of their damaged/destroyed home.
Eligibility may require a credit score threshold as well as the demonstration of on-time credit obligation payments for the 12 months prior to the disaster. 203(h) loans need to be initiated within a year of the disaster and to qualify, previous homes both owned or rented must have been located in a PDMDA and either destroyed or damaged to such an extent that reconstruction or replacement is necessary.