Home Loans For Disaster Declared Areas
Many houses, homes and businesses have been devastated by the nature wild behavior. Disasters can be nature made like weather storms, hurricanes and tornadoes, wild fire, floods, snow and mud; and man made disasters like factory accidents that starts a wild fire or huge explosions. The federal government has many disaster declared area grants and loans you may want to learn about and find if you are eligible.
The most famous is FEMA Federal Emergency Management Agency. But except for these main agency there are several more agencies and organizations which can lend a hand and money for rebuilding the property and giving hope for a better life.
In this review you can learn more about the SBA (U.S Small Business Administration) which has loans and grants for people in disaster struck areas even if they are not business owners. SBA offers homeowner, renter and/or personal-property owner,to apply to the SBA for a loan.
What SBA Disaster Loans Will Be Approved
People who file for a SBA disaster loan application, will need to fill out what are they asking to recover. The Small Business Administration, will approve disaster loans for renters and homeowners alike.
People who have suffered a natural or man mad disaster may borrow up to $40,000; this loan can be used for a variety of needs. As seen at the Katrina Hurricane, and now at the latest Tornadoes the disaster is so extreme thousands or even millions of people are left with nothing but the cloth they were wearing when the disaster has struck.
The SBA disaster loans can be borrowed for any house repair needed, roofs, windows, tiles, doors, electricity, sewage and any other house property that has been damaged and needs to be repaired.
The SBA will approve disaster loans to help people return to pre-disaster condition, by granting loans even for replacing clothing, home furniture, home appliances, electric appliances etc. The loans will be given as a car loan too if needed.
Homeowners SBA Loans For Repair or Replace
People who are home-owners and their property has been damaged or destroyed by the disaster can apply for a loan up to $200,000! This loan is given to help people to repair or replace their primary residence. When a hurricane or a tornado twister destroys a home to the ground, there is a need for a place to rent while the main home is rebuild to its pre-disaster condition.
Since natural disaster are occurring at the same places year after year, the SBA allows the homeowners an additional 20% from the original loan needed, to make construction improvements that will minimize the risk of the same destruction, is similar disaster happens in the future.
Disaster Loans Are Not Approved For
Since the funds are always limited, and many people and homeowners apply for such loans, the loans are only for pre-condition rebuilding and repair. The SBA loans are not approved to upgrade homes or make additions to the houses which may have been effaced by the storms.
If the disaster has struck and destroyed people’s secondary homes or vacation properties, these properties are not approved for the SBA disaster loans.
What Are The Disaster Loans Rates
The SBA understands that in case of disaster people will be left with nothing, and they are hopeless without the loans and aid they get from the state or federal administration. The loans are given to any one who applies and gets approved at the following rates:
- If you have good credit, and can get a loan easily anywhere else, then you rate for the disaster loan will not be above 8%.
- For people with little or no credit options, the loans will not exceed 4% interest rate.
It is not enough to say you do not have a credit anywhere else, the SBA will make its own inquiry to check your creditworthiness and only by its own decision will approve the borrowers the loan and determine the repayment plan.
The disaster loans will be granted for any length of time, and may be returned up to a 30 year repayment plan.
Disaster Area Home Loans
The disaster assistance program of SBA and other federal agencies are permitted only for current Presidential disaster declarations. Only after the president declared an event as disaster only then the SBA, FEMA and other agencies may begin processing applications for grants and loans from these places.
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