Non-FEMA Resources For FHA Borrowers After A Natural Disaster
August 22, 2025
However, for FHA homeowners, the path to a full recovery involves a wider range of federal support. How many non-FEMA disaster recovery resources do you know? The amount of help available may surprise you.
Non-FEMA Disaster Resources for FHA Borrowers
Besides FEMA, what is the first step an FHA borrower should take after a natural disaster? It’s one of the easiest steps to take. Contact your FHA mortgage servicer.
They can help you with any immediate relief options you may qualify for, such as a temporary pause on foreclosure proceedings and options for forbearance to suspend or reduce your payments.
Was your house destroyed in the disaster? Consider the FHA’s disaster relief options including the Section 203(h) program, which can help you buy a new home with no down payment. If your home is damaged but repairable, the FHA Section 203(k) rehab loan program is an option to refinance your current mortgage and include the cost of repairs into a single new loan.
Help For Borrowers In Rural Areas
If you live in an area designated as rural by the USDA, contact your local USDA Rural Development office. They may have payment assistance programs or other special servicing options available to homeowners affected by the disaster.
Rural or not, homeowners in a federally declared disaster area may be eligible to claim a deduction on their federal income tax return. This can, depending on tax laws in the year you file, lower your taxable income, and you may qualify for a larger tax refund, providing needed cash for recovery.
FHA Loan Foreclosure Protection
In a presidentially declared disaster area, HUD authorizes participating FHA lenders to implement a 90-day moratorium on foreclosures for FHA-insured loans. This provides homeowners with a crucial period to assess their situation without the immediate threat of losing their home.
Homeowner Help From The Small Business Administration
The U.S. Small Business Administration (SBA) has low-interest disaster loan options for homeowners affected by a qualifying disaster. These loans can be used to repair or replace a primary residence.
The SBA offers “mitigation assistance,” which allows a borrower to increase their loan amount by up to 20%. These additional funds can be used to make improvements that will help protect the property from damage in future disasters, such as elevating a home or installing storm shutters.
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