FHA Section 203(h) Disaster Mortgage Program
Buy or rebuild a home after a disaster with $0 down
If your home was destroyed or severely damaged in a federally declared disaster, an FHA Section 203(h) Disaster Home Loan may allow eligible borrowers to purchase or rebuild a primary residence with no down payment and flexible qualifying guidelines.
Overview
What is a FHA Section 203(h) disaster loan?
The FHA Section 203(h) Disaster Home Loan is a government-backed mortgage program from the Federal Housing Administration (FHA) that helps eligible homeowners and renters recover after a federally declared disaster. If your home was destroyed or severely damaged and you meet program requirements, you may qualify to purchase a new home or rebuild your primary residence with no down payment. The program is designed to make homeownership more accessible during the recovery process by offering flexible qualification guidelines and competitive FHA financing.
Whether you're rebuilding on your existing property or purchasing a replacement home in another eligible area, an FHA 203(h) disaster mortgage can provide the financing you need to move forward. With 100% financing for eligible borrowers, lower upfront cash requirements, and the security of an FHA-backed loan, the program helps disaster survivors recover faster and return to stable homeownership.
Highlights
FHA 203(h) features
Eligibility
General requirements for FHA 203(h) Disaster Home Loans
- Damaged home must be in a Presidentially-Declared Major Disaster Area (PDMDA)
- To check area eligibility, click here
- Make sure your "Declaration Type" is set to "Major Disaster Declaration"
- To check area eligibility, click here
- Home must be destroyed or damaged to such an extent that reconstruction or replacement is necessary
- Must receive an FHA case within 12 months of the official disaster declaration date
- See below on how to receive an FHA case number
- Down payments as low as 0%
- Credit scores generally as low as 500
- Loan limits as high as current FHA Loan Limits
- Must be a 1-unit primary residence
- Mortgage insurance premiums required
Pros and cons
Things to consider before getting an FHA 203(h) Disaster Home Loan
- Still responsible for closing costs: While you ca qualify for no down payment, you will still be responsible to pay closing costs
- Mortgage insurance applies: Just like with regular FHA Loans, you will be required to pay an upfront mortgage insurance premium (MIP) (although it can be rolled into the cost of the loan) as well as a monthly mortgage insurance fee
- Disaster declaration required: The program is only available after a Presidentially declared major disaster
- Time limits apply: Applications generally must be submitted within one year of the disaster declaration
- Primary residence only: The property must become your primary home
- Must be significantly damaged home: You'll need documentation showing your previous residence was severely damaged or destroyed because of the qualifying disaster
Who could benefit
Is an FHA 203(h) Disaster Home Loan right for me?
An FHA 203(h) loan could be a great fit if you:
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Lost your home due to a federally declared natural disaster
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Need to purchase another primary residence
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Want to rebuild after your home was destroyed
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Don't have enough savings for a down payment
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Want FHA financing designed specifically for disaster recovery
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Need flexible qualification guidelines after an unexpected event
Combining Programs
Combining FHA 203(k) and FHA203(h)
The 203(h) loan can be combined with the 203(k) Program. The 203(k) Program has options for repair and remodeling of minor or non-structural items such as plumbing, heating, AC, electrical systems, roofing, or installing new appliances or smoke detectors, as well as extensive renovations including structural changes or additions.
- The cost of rehabilitation may be included in your mortgage, if approved. This could include mortgage payment reserves to cover up to six months of payments during rehabilitation when the property cannot be occupied.
- A damaged property is eligible, regardless of its age. The damaged residence must be an existing property and only needs to have been completed and ready for occupancy before to the disaster
Getting started
How it works
1. Confirm you're eligible
We'll help determine whether your previous home was destroyed or severely damaged in a Presidentially declared disaster and confirm that you meet the FHA 203(h) eligibility requirements.
2. Apply for your case number
Complete a mortgage application with us and tell us about the home you plan to purchase or rebuild. We'll submit your information to HUD, verify your disaster eligibility, and obtain your FHA case number. This step must generally be completed within 12 months of the Presidential disaster declaration.
3. Find or build your new home
Purchase a replacement primary residence or rebuild your previous home. If your new home needs repairs or improvements, we'll help determine whether combining your loan with an FHA 203(k) renovation loan is an option.
4. Complete your loan
We'll guide you through the appraisal, underwriting, and closing process while keeping you informed every step of the way.
FAQ
Frequently Asked Questions
We’re here to help! Find answers to your everyday banking questions.
An FHA 203(h) loan is a government-insured mortgage created by HUD for people whose homes were destroyed or severely damaged in a Presidentially declared major disaster. It allows eligible borrowers to purchase or rebuild a primary residence with no down payment.
You may qualify if your previous home was destroyed or damaged beyond repair in a federally declared disaster area and you apply through an FHA-approved lender within the required timeframe.
Eligible borrowers can receive 100% financing, meaning no down payment is required. Closing costs and mortgage insurance still apply.
Yes. If you were renting a home that was destroyed or severely damaged in a qualifying disaster, you may still be eligible to purchase a home using the FHA 203(h) program.
Yes. Eligible borrowers may use the program to rebuild or replace a qualifying primary residence after a disaster.
Yes. In many cases, eligible borrowers can combine the programs to finance both the replacement home and the cost of eligible repairs or renovations.
Generally, borrowers must apply within one year of the President's disaster declaration for their area.
No. You may purchase a replacement primary residence anywhere in the United States, provided you otherwise qualify for the program.
The program is available only after a Presidentially declared major disaster, such as hurricanes, tornadoes, floods, wildfires, earthquakes, or other qualifying events designated by the federal government.
Yes. Like other FHA loans, FHA 203(h) mortgages require both upfront and annual mortgage insurance premiums (MIP).
No. FHA 203(h) loans are available only for owner-occupied primary residences.
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