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Restore stability in your life with 203(H) loans

Natural disasters often disturb the lifestyle of people and subject them to stress, anxiety, and financial instability. The after-effects of heavy floods, earthquakes, tornadoes, etc are never pretty. Disaster victims not only lose financial assets but also their hope to regain their normal lifestyle back. Nothing can shatter you more than losing your dream home.

Recovering from a major disaster is never easy, but if we all pledge our support to disaster victims, as a community, the situation can certainly improve. 2018 California wildfire destroyed almost 14000 residences, more than 500 commercial buildings, and 4000 other structures. Replacing a lost home is an incredibly difficult process, which is why US Housing and Urban Development has decided to speed federal disaster assistance to the state of California for providing support to homeowners and low-income renters that may have lost their homes due to wildfire. 203(H) loans cover those homeowners who lost their home in such natural disasters.

What will a 203(H) loan do?

The sole purpose of introducing this loan is to make an attempt of putting a roof over the heads of disaster victims. Since it does not require any down payments, the survivors get a realistic chance to restore stability in their life. Traditional loans include a plethora of factors to calculate the debt-to-income (DTI) ratio of debtors for gauging their loan repayment capability. Unlike most loans, 203(H) does not factor your current mortgage into your DTI. It also accepts any kind of gift funds to help with the qualification.

Am I eligible for a 203(H) loan?

Anyone who satisfies the following criteria can apply for this loan:-

  1. Living in Butte County and the home was destroyed by fire
  2. Made timely mortgage payments before the fire
  3. Credit score above 600
  4. Earns an income that qualifies for the required mortgage

If you wish to know more about 203(H) loans, get in touch with the team of Rainbow Funding and Realty LLC.