01/29/2025
Many homeowners still have mortgages on homes that burnt to the ground and unfortunately, those mortgage payments are still due. There is a mandatory 3 month forbearance period that lenders and banks are giving homeowners which means no payment is due and no reporting to credit agencies will take place during that time. After the 3 month mandatory period, homeowners can call their lender and request a longer period of time.
There is a mix of homeowners in both Altadena and the Palisades that had insurance to cover the cost of rebuilding and/or replacing, but there were others who were under insured or not insured at all. (For example, a lot of homeowners policies were cancelled and there was a lapse in coverage as they were looking for a new policy at the time of the fires, therefore they had no coverage.)
The FHA 203(h) program is a government funded program that helps those underinsured or not insured rebuild. This is a program specific to those affected by a natural disaster.
This is for primary residences only but will assist whether you owned or rented.
This program offers 100% financing and gives a ton of flexibility with credit, income and asset documentation. For example, the debt of their current mortgage will not be factored into qualifying for the new loan.
There were several mobile home parks in the Palisades that unfortunately would not qualify for this program. It’s specific to SFRs, Condos and PUDs.
Reach out with any questions on this!
