Ross Mortgage News

Everything You Need to Know About the FHA 203(h) Disaster Relief Loan Program

January 6, 2022

When a hurricane, tornado, wildfire, flood or other devastating disaster causes irreparable damage to your property, the Federal Housing Administration’s (FHA) Section 203(h) program makes it easier to get a mortgage and purchase another home.

As a trusted FHA-approved lending institution, Ross Mortgage has the ability to help families throughout the United States navigate this specialized loan program in the wake of a natural disaster.

Here is everything you need to know about the FHA 203(h) disaster relief loan program.


Who Qualifies for the Loan?

 You qualify to apply for the FHA 203(h) program if your property is or was located in an area designated as a Presidentially Declared Major Disaster Area (PDMDA) and was destroyed or damaged to such an extent that replacement is necessary. You also need to meet a 600 minimum FICO credit score.

What Are the Features of the Loan?

The FHA 203(h) loan can be used to finance the purchase of a single-family home that will be the principal residence of the homeowner. The program offers the following features designed to make recovery from a natural disaster easier:

  • 15- and 30-year fixed terms available through Ross Mortgage.
  • No down payment required—the borrower is eligible for 100% financing.
  • Closing costs can be paid by the borrower, premium pricing or seller, subject to a 6% limitation on seller concessions.
  • If you are purchasing a new home, it is NOT required to be in the same location as your previous residence.
  • Requires mortgage insurance premiums (MIP) to be paid upfront—or, most commonly, added to the borrower’s loan amount.
  • To ensure the program serves low- and moderate-income families, there is an FHA mortgage limit which varies over time and by place, depending on the cost of living and other factors.

When Do I Need to Apply for the Loan?

 Your application for the FHA 203(h) loan must be submitted within one year of the President’s declaration of the disaster. Be sure you can document residency, and save any insurance claim forms, photos and other important information, if possible.

What’s the Easiest Way to Apply for the Loan?

 You must apply for the FHA 203(h) loan through an FHA approved lending institution like Ross Mortgage. Our experienced disaster loan team will walk you through the process of purchasing a new home. We understand this is a sensitive time and help ensure your loan is processed in a timely and efficient manner.


Contact us today if you’re thinking about applying for the FHA 203(h) loan or would like to learn more. Our team of professionals are ready to answer any questions you have about the program.