Residents of areas devastated by the recent hurricanes can now get FHA loans on properties anywhere in the country with no downpayment.
The special Federal Housing Administration program, Section 203(h), requires no downpayment for people whose destroyed or damaged homes were in a presidentially declared disaster area, the U.S. Department of Housing and Urban Development announced Wednesday. Any U.S. residence can be financed with the FHA-insured program.
Borrowers must qualify under FHA guidelines, HUD said.
Mortgage limits, which depend on local average sales prices, are as high as $312, 895, according to the government.
"We want to give these families and individuals an opportunity to start over -- as homeowners -- whether they owned or rented their previous residences," said Housing Secretary Alphonso Jackson in the statement.