Industry News

HUD extends no-down-payment mortgages to hurricane victims

Displaced homeowners can use loans anywhere in U.S.

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The Department of Housing and Urban Development on Wednesday announced a new mortgage financing program that requires no down payment for people whose homes have been destroyed or damaged due to Hurricanes Katrina or Rita. In addition to requiring no down payment, potential homeowners can live anywhere they choose in the United States. Under the special mortgage program, called Section 203(h), HUD, through the Federal Housing Administration, will insure mortgages for individuals or families in a Presidentially declared disaster area whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary. "HUD is committed to helping people affected by these terrible disasters to re-establish their lives," said Housing and Urban Development Secretary Alphonso Jackson. "We want to give these families and individuals an opportunity to start over – as homeowners – whether they owned or rented their previous residences." Borrowers mus...