""Prospect Mortgage"":http://www.myprospectmortgage.com/company_profile.asp, a provider of home renovation and purchase financing, announced it is offering two loan programs to help homeowners impacted by Hurricane Sandy rebuild their lives.[IMAGE]
The programs, backed by the ""Federal Housing Administration"":http://www.myprospectmortgage.com/company_profile.asp (FHA), provide funding beyond insurance or other disaster assistance by offering financing for owners in declared disaster areas to repair or rebuild their homes or even to purchase a new home if necessary.
""For families whose lives have been torn apart by Sandy, rebuilding a home or purchasing a new one can be the most important step to restoring their lives,"" said Doug Long, president of Correspondent & Retail Lending for Prospect. ""These federally-backed loan programs provide low down payments to pay for repairs and renovations, or to purchase a new residence.""
The programs, FHA 203(h) and FHA 203(k), can often provide financing to make up for expenses beyond those covered by insurance or disaster assistance.
Through the FHA 203(h) program, disaster victims needing to relocate are able to buy a different home with no money down. Single-family homes and approved condos are eligible, but not vacation homes or investment properties. To qualify, the borrower's previous residence must have been in the disaster area and must have been destroyed or damaged beyond the point of livability.
For homeowners who need to repair or rebuild their home, the FHA 203(k) program provides up to 97.75 percent of the home's expected post-repair value. If the current loan exceeded the value of the property prior to damage, the homeowner would need to find additional funds to close. Insurance settlement and grants from the Federal Emergency Management Agency (FEMA) can reduce the needed loan amount.
""These loan programs may be able to help pay for repairs or renovations not covered by insurance or other assistance,"" said Jim Ragan, renovation sales manager. ""They can allow victims of Sandy to rebuild their homes in the way that is right for their family, not just what's covered by insurance.""
Headquartered in California, Prospect Mortgage is a top ten home purchase lender offering a full range of home loans, including FHA, VA, conventional, renovation, and more.