The FHA 203(h) Mortgage Loan for Disaster Victims was created to help homeowners recover after a Presidentially-Declared Major Disaster Area (PDMDA) event. In the right situation, this program can offer 100% financing with no down payment required.

As an FHA Loan Expert, Loan Officer John Thomas helps disaster-impacted homeowners understand whether this program applies to their situation and how to take action before critical deadlines expire.  Find out more today about FHA 203h Program, Call 302-703-0727 or APPLY ONLINE

Quick Answer: FHA 203(h) Disaster Victims Mortgage

The FHA 203(h) Disaster Victims Mortgage is a special FHA-insured loan for homeowners whose primary residence was destroyed or severely damaged in a Presidentially-Declared Major Disaster Area. Eligible borrowers can qualify for 100% financing (no down payment) to purchase or rebuild a new primary residence. In most cases, the FHA case number must be assigned within one year of the disaster declaration, unless an extension applies.

Key Takeaways

• FHA 203(h) is for disaster recovery when your primary residence is destroyed or unlivable in a Presidential disaster area.  You do NOT have to own a Home, can be renting in disaster area as well and still qualify.
• Up to 100% financing with no down payment for eligible borrowers
• Must be used for a primary residence, not a second home or investment property
• Timing is critical: FHA case number is required to be assigned within 1 year of the disaster declaration unless extension is granted.
• Best results come from working with a loan officer familiar with FHA 203(h) timelines and documentation

What Is the FHA 203(h) Disaster Victims Mortgage?

The FHA 203(h) program is a special mortgage insurance option backed by the Federal Housing Administration. It is designed for homeowners whose primary residence was destroyed or rendered uninhabitable due to a federally declared disaster.

Unlike standard FHA loans, the 203(h) program can remove one of the biggest barriers to recovery: the down payment. This loan may allow eligible borrowers to purchase or rebuild a new primary residence with no money down, provided they meet the program requirements.

FHA 203(h) at a Glance

Program name: FHA 203(h) Mortgage Insurance for Disaster Victims

Best for: Homeowners displaced by a federally declared disaster

Primary benefit: 100% financing (no down payment) for eligible borrowers

Property type: Single-family primary residence (owner-occupied)

Key deadline: FHA case number usually assigned within 1 year of the disaster declaration

Next step: Confirm disaster area status, occupancy, damage severity, and timeline

Key Benefits of the FHA 203(h) Loan

The FHA 203(h) program offers advantages that may not be available through traditional mortgage options:

• 100% financing with no down payment required
• Flexible underwriting guidelines recognizing disaster circumstances
• Available for purchasing or rebuilding a primary residence
• FHA-backed mortgage insurance for added lender stability
• Designed specifically for disaster recovery, not standard purchases

Eligibility Checklist for FHA 203(h)

You may be a fit for FHA 203(h) if:

• Your prior home was your primary residence
• The home was located in a Presidentially-Declared Major Disaster Area (PDMDA)
• The home was destroyed or damaged so severely it is unlivable
• You intend to occupy the new property as your primary residence
• You are within the FHA case number deadline (typically 1 year from declaration, unless extended)

Who Is Eligible for an FHA 203(h) Mortgage?

To qualify for an FHA 203(h) loan, several conditions must be met. Your previous home must have been located in a Presidentially-Declared Major Disaster Area, it must have been your primary residence, and it must have been destroyed or damaged to the point that it is no longer livable.  You do not have to have owned a home, you are still eligible even if you were renting a home in the disaster area.

You must also intend to occupy the new property as your primary residence. This program is not available for second homes or investment properties.

Because FHA 203(h) is designed specifically for disaster recovery, underwriting can be more flexible than standard mortgage programs in order to accommodate displacement and disrupted documentation.

One Critical Deadline You Cannot Miss

One of the most important details of the FHA 203(h) loan is timing. In most cases, the FHA case number must be assigned within one year of the official disaster declaration date.

In certain situations, FEMA may authorize an extended eligibility period, but those extensions are not automatic. Missing the case number deadline can eliminate eligibility even if you otherwise qualify.

FHA 203(h) vs Standard FHA Loans

Many homeowners assume the FHA 203(h) loan works like a typical FHA purchase loan. It does not.

Standard FHA loans require a down payment and are underwritten using normal purchase guidelines. FHA 203(h) is designed around disaster recovery, which can mean 100% financing and more flexibility when life circumstances have been disrupted.

This distinction matters, because applying under the wrong FHA program can create unnecessary delays or lead to incorrect conclusions about eligibility.

Common Questions People Ask About FHA 203(h)

Can I use FHA 203(h) if I move to a different city or state?

In many cases, yes, as long as you meet FHA 203(h) requirements and the new home will be your primary residence.

Does “100% financing” mean I pay nothing at closing?

Not always. 100% financing refers to no down payment. Closing costs and prepaid items may still apply, but options may exist depending on your scenario.

What happens if I miss the one-year deadline?

You may lose eligibility unless an official extension applies. This is why confirming the deadline early is critical.

What to Do Next

If you believe you may qualify for FHA 203(h), the fastest way to protect your options is to confirm eligibility and timing immediately. The most important early step is making sure your FHA case number is handled correctly and within the required timeframe.

APPLY NOW for FHA 203h – Talk to Loan Officer John Thomas

If your home was severely damaged or destroyed in a federally declared disaster, you may qualify for an FHA 203(h) loan with 100% financing and no down payment. Timelines matter with this program. Contact Loan Officer John Thomas to confirm eligibility and next steps.

Call now: 302-703-0727 or APPLY ONLINE

FHA Loan Expert – John Thomas – NMLS 38783

Primary Residential Mortgage, Inc.

FAQ: FHA 203(h) Disaster Victims Mortgage

What is an FHA 203(h) disaster victims mortgage?

The FHA 203(h) mortgage is a special FHA-insured loan for homeowners whose primary residence was destroyed or severely damaged in a Presidential disaster area. It can allow eligible borrowers to purchase or rebuild a new primary residence with 100% financing.

Does FHA 203(h) require a down payment?

No. FHA 203(h) can allow 100% financing, meaning no down payment is required for eligible borrowers who meet program rules.

Who qualifies for an FHA 203(h) loan?

To qualify, your previous home must have been your primary residence, located in a Presidentially-Declared Major Disaster Area (PDMDA), and it must have been destroyed or damaged so severely that it’s unlivable. You must also occupy the new home as your primary residence.

What is the deadline for FHA 203(h) after a disaster?

In most cases, the FHA case number must be assigned within one year of the disaster declaration date. FEMA may extend the eligibility period in certain situations, but extensions are not automatic.

Can FHA 203(h) be used to buy a different home?

Yes. If you qualify, FHA 203(h) can be used to purchase a new single-family primary residence, which may be in a different location, depending on your situation and program requirements.

Is FHA 203(h) available for second homes or investment properties?

No. FHA 203(h) is for primary residences only. It cannot be used for a second home or an investment property.

How is FHA 203(h) different from a standard FHA loan?

Standard FHA loans typically require a down payment and follow normal purchase underwriting guidelines. FHA 203(h) is designed for disaster recovery and can offer 100% financing and more flexible underwriting to accommodate displaced homeowners.

How do I find out if my area is a federally declared disaster area?

A loan officer can confirm whether your previous home was in a Presidentially-Declared Major Disaster Area and whether your damage meets FHA 203(h) requirements. This is an important first step before the deadline.

Do you have to have owned a home to be eligible for a FHA 203(h) loan?

No, you do not have to own a home to be eligible for the FHA 203(h) program. While it is designed for disaster victims whose homes were destroyed or damaged in a presidentially declared disaster area, the program applies to both previous homeowners and renters, provided the damaged home was their primary residence