Lost a home in a major disaster? FHA 203(h) can provide 100% financing.
Section 203(h) is one of FHA's most valuable but least-understood programs. It helps qualifying victims of Presidentially declared disasters rebuild or purchase another principal residence.
Who can qualify?
HUD says the borrower's prior home must have been located in a Presidentially designated major-disaster area and destroyed or damaged to such an extent that reconstruction or replacement is necessary.
No down payment
HUD's current program page states that eligible borrowers may receive 100% financing. Closing costs and prepaid expenses still have to be addressed through permitted borrower funds, premium pricing or seller contributions subject to FHA rules.
What can it finance?
203(h) can finance purchase or reconstruction of an eligible one-family principal residence.
Application window
HUD's current consumer page says the application for mortgage insurance must be submitted to the lender within one year of the President's disaster declaration. Current Handbook/disaster guidance should always be checked for the specific declaration.
Official program sources
Primary sources are HUD/FHA program pages and Handbook 4000.1. Program availability and lender participation can be narrower than statutory eligibility, so a program's existence does not mean every FHA lender offers it.