Homeowners and buyers can take advantage of two Federal Housing Administration loan programs that can help them remodel or rebuild after last month’s flood.
The Capital Area Finance Authority is offering the 203h Purchase Loan and 203K Renovation Loan programs through banks and lenders in 14 parishes Louisiana parishes.
CAFA Executive Director Mike Airhart says the loans encourage residents to rebuild in their communities rather than leave for areas outside of disaster zones.
“Some people that don’t have flood insurance may get frustrated and leave,” he says, adding that those without flood insurance can get their homes back in livable condition.
An estimated 146,000 homes were damaged by flooding. The 203h Purchase Loan program applies to renters or homeowners whose previous residence was located in a federally declared disaster area, or was destroyed or damaged to extent that reconstruction or replacement is necessary.
The loan is available for one year after a federal disaster declaration. The program offers 100% purchase financing to applicants. A credit score of at least 620 is required.
The 203K Renovation loan can be used to refinance and repair an existing flood-damaged home or to buy and repair a flood-damaged home. The loan program is not tied to the federal disaster declaration and is continuously available.
The maximum loan amount for both programs is $271,050.
The loans are available in the following 14 parishes: Acadia, Ascension, East Baton Rouge, East Feliciana, Evangeline, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. Tammany, Tangipahoa and West Feliciana.
In addition to the FHA loans, CAFA can offer an additional nonrepayable grant of 5% of the final loan amount for closing costs and down payment for borrowers of the FHA 203k Limited Loan.
