- Federal Housing Administration Offers Two Loan Programs to Help Homeowners Rebuild
- September 27, 2016
- Law Firm: Taylor Porter Brooks Phillips L.L.P. - Baton Rouge Office
The Federal Housing Administration offers two loan programs that can help homeowners rebuild, including the Capital Area Finance Authority's 203h Purchase Loan and 203K Renovation Loan through banks and lenders in 14 parishes Louisiana parishes.
The loans are available in the following 14 parishes: Acadia, Ascension, East Baton Rouge, East Feliciana, Evangeline, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. Tammany, Tangipahoa and West Feliciana. In addition to the FHA loans, CAFA can offer an additional nonrepayable grant of 5% of the final loan amount for closing costs and down payment for borrowers of the FHA 203k Limited Loan.
An estimated 146,000 homes were damaged by flooding. The 203h Purchase Loan program applies to renters or homeowners whose previous residence was located in a federally declared disaster area, or was destroyed or damaged to extent that reconstruction or replacement is necessary. The loan is available for one year after a federal disaster declaration. The program offers 100 percent purchase financing to applicants. A credit score of at least 620 is required. The 203K Renovation loan can be used to refinance and repair an existing flood-damaged home or to buy and repair a flood-damaged home. The loan program is not tied to the federal disaster declaration and is continuously available.
The maximum loan amount for both programs is $271,050.