Guaranteed Home Loans For Victims For Disaster

The United States Small Business Administration is responsible for providing financial assistance to renters and homeowners who live in a disaster area. Financial assistance is available in the form of long-term, low-interest loans. The loans are designed to cover losses that are not covered by insurance.

Homeowners can apply for up to $200,000, which can be used to repair their primary residence. Not only can they use this money to repair their home, but they can also use it in order to make additions to your home. However, this has to be approved by the building authority/code.

Homeowners may also be able get their mortgage refinanced if they do not have credit. They can also get their mortgage refinanced if the damage is severe. Small business administration will decide whether they want to refinance the mortgage after the application is processed.

The maximum loan amount that you can get is $200,000. However, you can get the loan amount increased by up to 20 percent in order to cover verified losses. Keep in mind that your vacation properties and secondary homes will not be eligible for home disaster loans. Rental properties may also qualify for a business disaster loan program.

Both borrowers and renters can get up to $40,000 to replace damaged or destroyed furniture. Automobiles, clothing, furniture and appliances are examples of some of the things that are covered by the business disaster loan program. Just about anything inside of your home is considered personal property. However, the loan may not be used to cover irreplaceable or extremely expensive such as recreational vehicles, pleasure boats, fur coats and antiques.

Program Requirements

You must live in a disaster-prone area in order to qualify for a disaster loan. You must also be a homeowner or renter whose home has sustained physical damage.

Terms of the Loans

You have to repay the loan. You will only be approved for the loan if the lender believes that you have the ability to repay the loan. The borrower's ability to pay is one of the factors that will affect the terms of the loan. There are several things that the Small Business Administration does in order to make the loans affordable. This includes long-terms and low-interest rates. You can potentially get up to 30 years in order to pay off the low.

If you are unable to get credit elsewhere, then the interest rate will not exceed 4 percent. The interest rate will not exceed 8 percent if you are able to get credit elsewhere. The Small Business Administration will determine whether you can get credit elsewhere after you turn in your application.

You can get up to $200,000 to replace or repair your primary residence. You can get up to $40,000 in order to replace or repair your personal property. You will not have to pay anything upfront to get the loan. You also do not have to pay any pre-payment penalties.

Home loans that exceed $25,000 may need to be secured by collateral. The Small Business Administration will ask you about available collateral. However, you will not be denied a loan because you do not have collateral. You may be able to use a first or second mortgage as collateral.

How to Apply for a Loan

There are several ways that you can apply for a disaster loan. You can fill out an application on the Disaster Loan Assistance website. You can also mail in your application. Keep in mind that it will take longer for your application if you decide to mail it in.

You can also apply in person at the Small Business Administration Disaster Loan Outreach Center and the FEMA State Disaster Recovery Center. You can find a FEMA office in your area by calling 1-800-659-2955. You can also email [email protected]. If you want to get assistance in the presidential disaster declaration, then you will need to register with FEMA. You can also call them at 1-800-621-3362.

Keep in mind that you will have to send an IRS Form 4506-T. This gives the Small Business Administration permission to get your tax return information. It can take several weeks for your application to be approved. The amount of time that it takes to process an application depends on the number of applications that the SBA receives.