A little over a month following Alaska’s 7.0 magnitude earthquake, The U.S. Department of Housing and Urban Development (HUD) has announced they are speeding up disaster assistance efforts for the state. On January 31, President Donald Trump issued a major disaster declaration for Anchorage and affected counties which provided immediate foreclosure relief. This allowed HUD to offer a 90-day moratorium on foreclosures of Federal Housing Administration-insured (FHA) home mortgages.
Also, HUD will provide an automatic 90-day moratorium on foreclosures of FHA-insured home mortgages to displaced homeowners and low-income renters. Several options are being offered for families who need financing to replace, repair, or refinance in the wake of the disaster.
Further, HUD's Section 203(h) program provides mortgage insurance to disaster victims whose homes were destroyed or damaged beyond repair. This means borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs. HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house, along with its repair through a single mortgage. The offer extends to existing single-family residents needing to finance repair damage.
With this announcement, homeowners and low-income renters forced from their homes in areas affected by the earthquake have more help available. In an effort to get the word out to those who need it, HUD is sharing information with the Federal Emergency Management Agency. They are also reaching out to housing providers that may have available units in the impacted counties, including public housing agencies and multi-family properties.
To read more about HUD’s efforts in Alaska here.