source:
  type: regulation
  id: hud-4000-1-programs-and-products-disasters-and-203-h-mortgage-insurance
  authority: HUD Handbook 4000.1 — Programs and Products - Disasters and 203(h) Mortgage Insurance for
    Disaster Victims (09/14/2015)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Disasters and 203(h) Mortgage Insurance\
    \ for Disaster Victims\". Gap-fill (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-disasters-and-203-h-mortgage-insurance-full
  canonical_id: hud-4000-1-programs-and-products-disasters-and-203-h-mortgage-insurance-full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Disasters and 203(h) Mortgage Insurance for Disaster Victims:\
    \ 8. Programs and Products - Disasters and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)\
    \ \n \nb. Disasters and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015) \nSection 203(h)\
    \ of the National Housing Act authorizes FHA to insure Mortgages to \nvictims of a Presidentially-Declared…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Disasters and 203(h) Mortgage Insurance for
      Disaster Victims (09/14/2015)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "8. Programs and Products - Disasters and 203(h) Mortgage Insurance for Disaster\
      \ Victims (09/14/2015) \n \nb. Disasters and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)\
      \ \nSection 203(h) of the National Housing Act authorizes FHA to insure Mortgages to \nvictims of\
      \ a Presidentially-Declared Major Disaster Area (PDMDA) for the purchase or \nreconstruction of\
      \ a Single Family Property. \nMortgages to be insured under Section 203(h) must be processed and\
      \ underwritten in \naccordance with the regulations and requirements applicable to the 203(b) program.\
      \ \nWhere 203(b) program guidance conflicts with the specific requirements on Section \n203(h) Mortgages\
      \ provided below, this specific guidance controls. \n(1) Application Deadline \nThe FHA case number\
      \ must be assigned within one year of the date the PDMDA \nis declared, unless an additional period\
      \ of eligibility is provided. \nThe mortgaged Property must be the Borrower’s Principal Residence.\
      \ \n(3) Credit Score \nThe Borrower must have a minimum credit score of 500. \n(B) Property Eligibility\
      \ \nThe previous residence (owned or rented) must have been located in a PDMDA and \ndestroyed or\
      \ damaged to such an extent that reconstruction or replacement is \nnecessary. A list of the specified\
      \ affected counties and cities and corresponding \ndisaster declarations are provided by the Federal\
      \ Emergency Management Agency \nThe purchased or reconstructed Property must be a Single Family\
      \ Property or a unit \nin an FHA-Approved Condominium Project. \n(C) Minimum Required Investment/Maximum\
      \ Loan-to-Value \nThe Borrower is not required to make the Minimum Required Investment (MRI). The\
      \ \nmaximum Loan-to-Value (LTV) ratio limit is 100 percent of the Adjusted Value. If a \n203(k)\
      \ is used in conjunction with a 203(h), the 203(k) LTV applies. \n\n8. Programs and Products - Disasters\
      \ and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015) \n \n(D) Underwriting \nThe Mortgagee\
      \ should be as flexible as prudent decision making permits. \nThe Mortgagee is required to make\
      \ every effort to obtain traditional documentation \nregarding employment, assets, and credit, and\
      \ must document their attempts. Where \ntraditional documentation is unavailable, the Mortgagee\
      \ may use alternative \ndocumentation as outlined below. Where specific requirements are not provided\
      \ \nbelow, the Mortgagee may use alternative documentation that is reasonable and \nprudent to rely\
      \ upon in underwriting a Mortgage. \n(1) Credit \nFor Borrowers with derogatory credit, the Mortgagee\
      \ may consider the Borrower \na satisfactory credit risk if the credit report indicates satisfactory\
      \ credit prior to a \ndisaster, and any derogatory credit subsequent to the date of the disaster\
      \ is related \nto the effects of the disaster. \n(2) Income \nIf prior employment cannot be verified\
      \ because records were destroyed by the \ndisaster, and the Borrower is in the same/similar field,\
      \ then FHA will accept IRS \nForm W-2s, Wage and Tax Statement, and Tax Returns from the Internal\
      \ Revenue \nService (IRS) to confirm prior employment and income. \nThe Mortgagee may also include\
      \ short-term employment obtained following the \ndisaster in the calculation of Effective Income.\
      \ \n(3) Liabilities \nWhen a Borrower is purchasing a new house, the Mortgagee may exclude the \n\
      Mortgage Payment on the destroyed residence located in a PDMDA from the \nBorrower’s liabilities.\
      \ To exclude the Mortgage Payments from the liabilities, the \n• obtain information that the Borrower\
      \ is working with the servicing \nMortgagee to appropriately address their mortgage obligation;\
      \ and \n• apply any property insurance proceeds to the Mortgage of the damaged \nhouse. \n(4) Assets\
      \ \nIf traditional asset documentation is not available, the Mortgagee may use \nstatements downloaded\
      \ from the Borrower’s financial institution website to \nconfirm the Borrower has sufficient assets\
      \ to close the Mortgage. \n\n8. Programs and Products - Disasters and 203(h) Mortgage Insurance\
      \ for Disaster Victims (09/14/2015) \n \n(5) Housing Payment History \nThe Mortgagee may disregard\
      \ any late payments on a previous obligation on a \nProperty that was destroyed or damaged in the\
      \ disaster where the late payments \nwere a result of the disaster and the Borrower was not three\
      \ or more months \ndelinquent on their Mortgage at the time of the disaster. \nThe Mortgagee may\
      \ justify approval if the Borrower was three or more months \ndelinquent if extenuating circumstances\
      \ are documented by the Mortgagee. \niii. Eligibility Documentation Requirements \nThe Mortgagee\
      \ must document and verify that the Borrower’s previous residence was in \nthe disaster area, and\
      \ was destroyed or damaged to such an extent that reconstruction or \nreplacement is necessary.\
      \ Documentation attesting to the damage of the previous house \nmust accompany the mortgage application.\
      \ If purchasing a new house, the house need not \nbe located in the area where the previous house\
      \ was located. \niv. Refinancing Policy \nRefinancing is permitted in conjunction with rehabilitation.\
      \ \nv. Using Section 203(k) with 203(h) for Rehabilitation \nDamaged residences located in a PDMDA\
      \ are eligible for Section 203(k) mortgage \ninsurance regardless of the age of the Property. The\
      \ residence only needs to have been \ncompleted and ready for occupancy for eligibility under Section\
      \ 203(k). All other Section \n203(k) policy must be followed."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
