Federal Assistance for Homeowners in Texas
President Biden has declared the state of Texas as a major disaster area, which allows federal assistance for state and local recovery efforts.
Those who have FHA home loans should contact their loan servicer immediately to learn their options for foreclosure relief where applicable, plus get information about disaster recovery resources from agencies like FEMA.
When the President declares a major disaster area, it triggers several things including foreclosure moratoriums from the FHA, but those who homes damaged or destroyed by a disaster also have the option to apply for an FHA 203(h) Rehabilitation loan for disaster victims.
This kind of loan is only provided for those who are in a federal disaster area and features the following:
- No down payment is required.
- Closing costs and prepaid expenses must be paid by the borrower in cash or paid through premium pricing or by the seller, subject to a 6 percent limitation on seller concessions.
- May be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner.
- These loans can be used in conjunction with the FHA 203(k) Rehabilitation loan or 203(k) refinance loan.
The following Texas counties are affected by the federal disaster declaration:
Angelina, Aransas, Bastrop, Bee, Bell, Bexar, Blanco, Brazoria, Brazos, Brown, Burleson, Caldwell, Calhoun, Cameron, Chambers, Collin, Comal, Comanche, Cooke, Coryell, Dallas, Denton, DeWitt, Ellis, Falls, Fort Bend, Galveston, Gillespie, Grimes, Guadalupe, Hardin, Harris, Hays, Henderson, Hidalgo, Hood, Jasper, Jefferson, Johnson, Kaufman, Kendall, Lavaca, Liberty, Madison, Matagorda, Maverick, McLennan, Montague, Montgomery, Nacogdoches, Nueces, Orange, Palo Pinto, Panola, Parker, Polk, Rockwall, Sabine, San Jacinto, San Patricio, Scurry, Shelby, Smith, Stephens, Tarrant, Travis, Tyler, Upshur, Van Zandt, Victoria, Walker, Waller, Wharton, Wichita, Williamson, Wilson, and Wise.
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