Disaster victims get more mortgage relief
The Federal Housing Administration (FHA) is expanding mortgage relief to FHA-insured homeowners who live or work in areas that were affected last year by Hurricanes Harvey, Irma, and Maria, as well as wildfires and mudslides in California. Mortgage servicers in those areas will offer additional payment options to help disaster victims remain in their homes.
The FHA is launching a “Disaster Standalone Partial Claim” option, which covers up to 12 months of missed mortgage payments through an interest-free second loan on the mortgage. That loan is payable only when the borrower sells the home or refinances the mortgage. Further, the option requires no trial period or balloon payment and allows borrowers to keep their existing low-interest rate, loan term, and monthly mortgage payment.