Life has changed for the victims of Hurricane Sandy. Victims of this natural disaster want to get relief funds. Unfortunately, most survivors are not aware of the various ways to obtain them. Most of them primarily know about 2 options. These are (a) the insurance company (b) FEMA. Nevertheless, there are a lot of other disaster relief options which can potentially help survivors to meet the expenses incurred in doing repair works.
If you've faced the fury of Hurricane Sandy and need relief funds to get back to normal life, then read this article carefully.
Disaster recovery options which you may not be aware of
Check out the 4 options which can help you get the financing for getting back to normal life.
1. FHA 203(h) program: This program insures home loans from eligible lenders to people who have endured home damage. This program offers mortgage insurance so that natural disaster sufferers don't get delinquent on their current home loans. Victims can use the insured mortgage to renovate their home. They can even buy a new home. Borrowers won't have to make any down payment on the loan.
2. Small Business Association: You can apply for a disaster loan from Small Business Association. This loan is offered at a low interest rate. You can use the money to meet the repair expenses. You can easily utilize the loan to repair your home and business. However, keep it in mind that this loan is not available for repairing second homes. This is mainly because they are not of primary importance.
There is one way to get relief fund for your second home also. You need to prove that you earn dollars from the second home through rents. You can show the copy of your income tax return to the Small Business Association.
3. FHA 203(k) program: This program is primarily offered for the restoration of the single family homes. In the program, the lender will at first determine how much improvement is required. Then only, the lender will give money to the borrower. Sometimes, disaster affected people have to renovate home drastically. They will have to pay high interest rate on the loan. In addition to that, they'll get short amortization period.
4. Federal Emergency Management Agency (FEMA): You can contact FEMA at (800) 621-FEMA to get relief funds. Make sure you give your contact details and insurance policy numbers to FEMA. Explain how your property has been severely affected by the natural disaster. An investigator will be sent to check the extent of damage. Walk alongside the investigator when he comes to inspect your house. If the investigator feels that you really need help, then a check will be sent to you between 7 and 10 days.
Finally, Fannie Mae and Freddie Mac have decided to give some relief to the disaster affected borrowers. If the homes of the borrowers have been damaged by the hurricane, then lenders backed by Fannie Mae and Freddie Mac can offer 90 days forbearance. The lenders will not charge any penalty for a few irregular payments. In addition to that, mortgage lenders may postpone or shelve foreclosure process. Late fees may also be waived off.