The Federal Housing Administration this week announced additional payment options to help Hurricane Harvey victims remain in their homes.
Qualifying FHA-insured homeowners who live or work in areas affected by Hurricane Harvey can take advantage of the Disaster Partial Claim Option, which covers up to 12 months of missed mortgage payments through an interest-free loan on the mortgage. This option requires no trial period or balloon payment and allows borrowers to keep their existing low interest rate and loan term as well as their existing monthly mortgage payment.
This option is available to borrowers in owner-occupied properties who became delinquent on their mortgage payments because of Harvey and whose initial mortgage forbearance periods are ending. The borrowers must have been current on their mortgage payments at the date of the disaster, and their current income must be equal to or greater than their income before the disaster.