source:
  type: guide
  id: hud-4000-1-ii-b-disasters-and-203-h-mortgage-insurance-for-disaster-victims
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Disasters
    and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Disasters
    and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-disasters-and-203-h-mortgage-insurance-for-disaster-victims-full
  canonical_id: hud-4000-1-ii-b-disasters-and-203-h-mortgage-insurance-for-disaster-victims-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Disasters
    and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Disasters
      and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. Disasters and 203(h) Mortgage Insurance for Disaster Victims
      (09/14/2015) i. Definition Section 203(h) of the National Housing Act authorizes
      FHA to insure Mortgages to victims of a Presidentially-Declared Major Disaster
      Area (PDMDA) for the purchase or reconstruction of a Single Family Property.
      Mortgages to be insured under Section 203(h) must be processed and underwritten
      in accordance with the regulations and requirements applicable to the 203(b)
      program. Where 203(b) program guidance conflicts with the specific requirements
      on Section 203(h) Mortgages provided below, this specific guidance controls.
      ii. Eligibility Requirements (A) Borrower Eligibility (1) Application Deadline
      The FHA case number must be assigned within one year of the date the PDMDA is
      declared, unless an additional period of eligibility is provided. (2) Principal
      Residence The mortgaged Property must be the Borrower’s Principal Residence.
      (3) Credit Score The Borrower must have a minimum credit score of 500. (B) Property
      Eligibility The previous residence (owned or rented) must have been located
      in a PDMDA and destroyed or damaged to such an extent that reconstruction or
      replacement is necessary. A list of the specified affected counties and cities
      and corresponding disaster declarations are provided by the Federal Emergency
      Management Agency (FEMA). The purchased or reconstructed Property must be a
      Single Family Property or a unit in an FHA-Approved Condominium Project. (C)
      Minimum Required Investment/Maximum Loan-to-Value The Borrower is not required
      to make the Minimum Required Investment (MRI). The maximum Loan-to-Value (LTV)
      ratio limit is 100 percent of the Adjusted Value. If a 203(k) is used in conjunction
      with a 203(h), the 203(k) LTV applies. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 8. Programs and Products
      - Disasters and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)
      Handbook 4000.1 430 Last Revised: 11/26/2025 (D) Underwriting The Mortgagee
      should be as flexible as prudent decision making permits. The Mortgagee is required
      to make every effort to obtain traditional documentation regarding employment,
      assets, and credit, and must document their attempts. Where traditional documentation
      is unavailable, the Mortgagee may use alternative documentation as outlined
      below. Where specific requirements are not provided below, the Mortgagee may
      use alternative documentation that is reasonable and prudent to rely upon in
      underwriting a Mortgage. (1) Credit For Borrowers with derogatory credit, the
      Mortgagee may consider the Borrower a satisfactory credit risk if the credit
      report indicates satisfactory credit prior to a disaster, and any derogatory
      credit subsequent to the date of the disaster is related to the effects of the
      disaster. (2) Income If prior employment cannot be verified because records
      were destroyed by the disaster, and the Borrower is in the same/similar field,
      then FHA will accept IRS Form W-2s, Wage and Tax Statement, and Tax Returns
      from the Internal Revenue Service (IRS) to confirm prior employment and income.
      The Mortgagee may also include short-term employment obtained following the
      disaster in the calculation of Effective Income. (3) Liabilities When a Borrower
      is purchasing a new house, the Mortgagee may exclude the Mortgage Payment on
      the destroyed residence located in a PDMDA from the Borrower’s liabilities.
      To exclude the Mortgage Payments from the liabilities, the Mortgagee must: •
      obtain information that the Borrower is working with the servicing Mortgagee
      to appropriately address their mortgage obligation; and • apply any property
      insurance proceeds to the Mortgage of the damaged house. (4) Assets If traditional
      asset documentation is not available, the Mortgagee may use statements downloaded
      from the Borrower’s financial institution website to confirm the Borrower has
      sufficient assets to close the Mortgage. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 8. Programs and Products
      - Disasters and 203(h) Mortgage Insurance for Disaster Victims (09/14/2015)
      Handbook 4000.1 431 Last Revised: 11/26/2025 (5) Housing Payment History The
      Mortgagee may disregard any late payments on a previous obligation on a Property
      that was destroyed or damaged in the disaster where the late payments were a
      result of the disaster and the Borrower was not three or more months delinquent
      on their Mortgage at the time of the disaster. The Mortgagee may justify approval
      if the Borrower was three or more months delinquent if extenuating circumstances
      are documented by the Mortgagee. iii. Eligibility Documentation Requirements
      The Mortgagee must document and verify that the Borrower’s previous residence
      was in the disaster area, and was destroyed or damaged to such an extent that
      reconstruction or replacement is necessary. Documentation attesting to the damage
      of the previous house must accompany the mortgage application. If purchasing
      a new house, the house need not be located in the area where the previous house
      was located. iv. Refinancing Policy Refinancing is permitted in conjunction
      with rehabilitation. v. Using Section 203(k) with 203(h) for Rehabilitation
      Damaged residences located in a PDMDA are eligible for Section 203(k) mortgage
      insurance regardless of the age of the Property. The residence only needs to
      have been completed and ready for occupancy for eligibility under Section 203(k).
      All other Section 203(k) policy must be followed. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages'
  judgment: false
