- June 28, 2018
- By Heather Gapol
- Island Home Loans News
UPDATE: Loan Program Available for Disaster Victims
Loan program available for lower Puna lava flow disaster victims to purchase a home.
This is an FHA Loan Program. Qualified borrowers only.
Are you an owner or renter that has been displaced by the recent lava flow? If so, can you provide proof that your previous residence was destroyed or severely damaged? If you’re an owner, do you currently have a mortgage on the home that was destroyed?
Here are some highlights of the program:
- Primary residences only
- Only purchases are eligible
- Both owners & renters of affected properties are eligible
- Proof that previous residence has been destroyed or severely damaged (Insurance claim documentation or documentation from the County showing the home was destroyed or damaged)
- Up to 100% financing, however, closing costs and prepaids must be paid from borrower funds, gift funds, or seller credit
- Seller credits are allowed up to 6% as long as appraised value can support
- If you have recent derogatory credit as a result of the disaster but previous credit history is satisfactory, derogatory credit may be acceptable
- FHA does not allow financing on properties that are serviced by water catchment or wells