What are the guidelines for combining disaster and rehabilitation mortgage insurance?

Mortgagees may use Section 203(k) Rehabilitation Mortgage Insurance Program with Section 203(h) Mortgage Insurance for Disaster Victims. 

Damaged residences located in a Presidentially-Declared Major Disaster Area (PDMDA) are eligible for Section 203(k) mortgage insurance regardless of the age of the Property.  The residence only needs to have been completed and ready for occupancy for eligibility under Section 203(k).  All other Section 203(k) policy must be followed (see Handbook 4000.1 II.A.8.a).  

For additional information regarding Section 203(h) see Handbook 4000.1 II.A.8.b 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-05137