Prospect Mortgage LLC has announced that it is offering two loan programs that can help those impacted by Hurricane Sandy rebuild their lives. These Federal Housing Administration (FHA) programs provide funding beyond insurance or other disaster assistance by offering financing for those in declared disaster areas to repair or rebuild a home, or even to purchase a new residence.
"For families whose lives have been torn apart by Sandy, rebuilding a home or purchasing a new one can be the most important step to restoring their lives," said Doug Long, president of correspondent and retail lending for Prospect Mortgage. "These federally-backed loan programs provide low downpayments to pay for repairs and renovations, or to purchase a new residence."
The programs, FHA 203(h) and FHA 203(k), offered through Prospect Mortgage in the impacted areas, can often provide financing to close the gap between what is covered by insurance or other disaster assistance and the full cost of recovery. Key program details include:
►Disaster victims are able to buy a different home with no money down. Previous residence must have been in the disaster area and destroyed or extensively damaged and is now not habitable.
►Single-family homes and approved condos are eligible (vacation and investment properties are ineligible).
►Must be completed within one year of the disaster.
►Loans will be made through the FHA 203(h) program.
►Loans are available to either repair or re-build and the loan limits are based on the home's value after work is completed.
►Up to 97.75% of the home's expected post-completion value may be financed.
►Insurance settlements and any FEMA grants can reduce the needed loan amount.
►Repairs can range from minor to major renovation (replace roof, repair deck, etc.).
►If the current loan exceeded the value of the property prior to damage the homeowner would need to find additional funds to close.
►Loans will be made through the FHA 203(k) program.
"These loan programs may be able to help pay for repairs or renovations not covered by insurance or other assistance," said Jim Ragan, renovation sales manager. "They can allow victims of Sandy to rebuild their homes in the way that is right for their family, not just what's covered by insurance."