What documentation is typically provided on a 203(h) mortgage to show the extent of the damage to the borrower’s home in a Presidentially-Declared Major Disaster Area?

FHA does not have specific required documentation mandated to be utilized to attest to the damage of the borrower’s previous residence in the disaster area.  The lender must determine that the borrower’s previous residence was destroyed or damaged to such an extent that reconstruction or replacement is necessary.  A lender may utilize third parties such as a professionally and/or appropriately licensed, bonded, registered engineer, or home inspector or tradesperson (as applicable), to provide documentation on the extent of the damage to the property to assist the lender in making such a determination.   
 
HUD Policy Determination; and
Handbook 4000.1 II.A.8.(b) is available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01343