So how does one purchase a new home while they have a home thats been classified as a total loss on their hands?

The answer to that question is with a FHA 203(h) loan.  There are a rules that one must adhere to in order to qualify for this program.  Take a peek at the general criteria noted below.

• Their current personal home, apartment or rented home must be in a President Disaster Declared Area – this can be verified by visiting the FEMA website.  A second home or home owned as a rental property will not count.
• The borrower must meet FHA guidelines, which include being under the FHA loan limits, meeting a minimum credit score defined by the lender and the FHA case number (ordered by the lender) must be ordered within one year of the declared disaster.
• The borrower must provide documentation their current home was destroyed to the extent it cannot be repaired/replaced.
• The borrower will need to prove they are working with their current mortgage company to appropriately address their current mortgage and all insurance proceeds received MUST be applied to the current mortgage.

If you believe you are in a situation where you have a complete loss on your hands and believe you qualify for a FHA 203(h) based on the criteria above, we recommend connecting with a vetted loan officer to investigate if this program is suited for your situation.  Below you will find our favorite lending professional.  Once you know you are on the home purchasing path, be sure to connect with a share realtor to guide you.  We have several trusted folks to interview when the time is right for your next purchase, whether it be with a FHA 203(h) loan or not.

Denise Hosek
Annie Mac Mortgage
dhosek@annie-mac.com
(512) 577-5665