Federal Government Natural Disaster Assistance

5-19-2013: NFIP owe $24B more than it has, but thanks to Congress’ extension of coverage thru 2017 via the Flood Insurance Reform Act – reduction in subsidies, increased premiums, encourages self insurance, and probably goes as far as to expand the number of properties in flood zones to charge more $ to cover current and future losses. Source: An old loan safe article.

Updated 11-6-2012:  Federal Government, through Consumer Financial Protection Bureau (CFPB) advises those whose finances are affected by storms to use their checklist. Source: http://www.consumerfinance.gov/blog/rebuilding-your-finances-checklist/

If your home has been affected by a natural disaster (hurricane, flood, tornado, wildfire, etc.) it is important to identify the resources available to assist in your recovery. To obtain the latest information on available programs, eligibility criteria, and declared disasters visit the national disaster recovery site:


If your property is located in a Presidentially-declared disaster area, and is insured by the Federal Housing Administration (FHA), the following disaster relief programs are immediately available:

  • Immediate foreclosure relief granted – HUD/FHA grants a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages
  • Disaster mortgage insurance program made available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs
  • Rehabilitation mortgage insurance programs made available – the FHA Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home

It is best to contact your homeowner’s insurance provider and mortgage lender as soon as possible to notify them of the condition of your property and to obtain their assistance in your recovery effort.

Additional Resources

To find more information about HUD and FHA disaster relief programs, please visit the HUD disaster resources site at http://www.hud.gov/info/disasterresources_dev.cfm

To find out more about the Federal Housing Administration’s primary disaster mortgage insurance program , click here http://portal.hud.gov/FHAFAQ/controllerServlet?method=contactFHAInit.

You can locate a local housing counseling agency by calling (800) 569-4287 or visit http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor.

Should you have questions regarding any of the FAQ above, or any FHA issue, please contact the FHA Resource Center by telephone at 1-800-CALLFHA (225-5342), by email on answers@hud.gov, or click here to Submit a Question.

Also, be sure to see my post on Flood Insurance here in this blog – “Flood Insurance – Take it or Leave it”

This entry was posted in Uncategorized. Bookmark the permalink.