What is Mortgage Insurance for Disaster Victims (Section 203h)?

Section 203(h) of the National Housing Act – Mortgage Insurance for Disaster Victims – 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 or a unit in an FHA-approved Condominium Project. If purchasing a new house, the house need not be located in the area where the previous house was located. The property must be the Borrower’s Principal Residence.

The FHA case number must be assigned within one year of the PDMDA, unless an additional period of eligibility is provided.

The previous house (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). Documentation attesting to the damage of the previous house must accompany the mortgage application.

For information please visit the Mortgage Insurance for Disaster Victims Section 203(h) web page at https://www.hud.gov/program_offices/housing/sfh/ins/203h-dft

Find an FHA-approved lender in your area at https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist

For additional information see Handbook 4000.1 II.A.8.b 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-03015