What is an FHA 203(h) disaster loan?
Losing a home is one of the hardest things a family can go through. Beyond the grief and the paperwork, there's a practical question that shows up fast: where are we going to live? FHA's Section 203(h) program — officially called Mortgage Insurance for Disaster Victims — was created for exactly that moment.
In plain English, an FHA 203(h) disaster loan is an FHA-insured mortgage for people whose primary residence was destroyed or damaged so badly that it has to be rebuilt or replaced, in an area the President has declared a major disaster. It works much like a regular FHA home loan, with a few important differences: it is built for disaster survivors, it can be used by people who were renting, and it doesn't require the normal 3.5% minimum down payment that standard FHA 203(b) mortgages require — eligible disaster victims can finance up to 100% of the purchase price. You still need to cover closing costs and prepaid items, and normal FHA credit and income underwriting still applies.
FHA203hLoans.com is an educational site written and reviewed by Matthew Brown, a Sr. Loan Originator / Mortgage Broker (NMLS #1254520). It is not a government website and is not affiliated with HUD, FHA, or FEMA. For the official program description, see HUD's Section 203(h) page.
Who this no-down-payment home loan for disaster victims helps
The program is aimed at people whose primary residence — the home they actually lived in — was located in a Presidentially declared major disaster area (often shortened to PDMDA) and was destroyed or damaged to the point that reconstruction or replacement is necessary.
Homeowners
If you owned the home that was lost, 203(h) may help you buy a different home or finance rebuilding on your lot. Many owners also have an existing mortgage to deal with — see disaster mortgage relief options for what your servicer may be able to do.
Renters
HUD's consumer fact sheet says eligibility applies whether you owned or rented. If the rental you lived in was destroyed, 203(h) may be a way to become a homeowner in the area you already call home. Renters document their prior residence with things like a lease and utility bills.
It's not for second homes, vacation properties, or rentals you owned but didn't live in. The new home must also be your primary residence. The full checklist is on the FHA 203(h) requirements page.
203(h) is time-sensitive. Tell Matthew your county and what happened to your home — he'll help you check eligibility and next steps.
Talk with MatthewWhat a 203(h) loan can do: 100% financing to buy or rebuild
- Buy a replacement home. A single-family home or a unit in an FHA-approved condominium project — in the same town or somewhere new. Many families choose to relocate rather than wait through a long rebuild.
- Rebuild on your lot. If you owned the land, 203(h) can be used for reconstruction of your primary residence.
- Combine with a 203(k). HUD says 203(h) can be paired with FHA's 203(k) rehabilitation program, so you can buy a damaged home and repair it, or finance substantial repairs, in one loan. See rebuilding with 203(h) and 203(k).
FHA county loan limits and FHA mortgage insurance still apply. For a deeper walk-through of the pieces, read how FHA 203(h) works.
The one-year clock
The single most important detail about 203(h) is timing. Generally, your FHA case number must be assigned within one year of the date of the President's major disaster declaration — not one year from the day the fire or storm hit your house, and not one year from the day you started shopping.
Don't wait until month eleven. A case number is usually assigned once you're working with a lender on a specific loan. Finding a home, getting under contract, and gathering documents all take time, so it's wise to start the conversation early — even if you're not sure yet whether you'll buy or rebuild.
Declarations sometimes add counties later, and the declaration date is what matters for the clock. Matthew will confirm the exact deadline for your county when you talk.
Current disaster areas at a glance: where 0% down 203(h) may be open
Last checked September 26, 2026. Disaster declarations and designated areas change — always confirm current status with FEMA and with Matthew.
| Declaration | Area | Event | Status | Approx. 203(h) window |
|---|---|---|---|---|
| DR-4922 | Mississippi — 5 counties | Severe storms, straight-line winds, tornadoes, flooding | Active — Individual Assistance | ≈ June 30, 2027 |
| DR-4923 | Wisconsin — 19 counties + Oneida Indian Reservation | Severe storms, tornadoes, flooding | Active — Individual Assistance | ≈ June 30, 2027 |
| DR-4925 | Michigan — 27 counties | Severe storms, tornadoes, flooding | Active — Individual Assistance | ≈ June 30, 2027 |
| DR-4927 | Louisiana — 6 parishes | Tropical Storm Arthur | Active — Individual Assistance | ≈ June 30, 2027 |
| DR-4930 | Mississippi — 4 counties | Tropical Storm Arthur | Active — Individual Assistance | ≈ Aug 3, 2027 |
| DR-4932 | West Virginia — 4 counties | Severe storm, straight-line winds, tornadoes, flooding, landslides, mudslides | Active — Individual Assistance | ≈ Aug 3, 2027 |
| DR-4933 | Indiana — 24 counties | Severe storms, straight-line winds, tornadoes, flooding | Active — Individual Assistance | ≈ Aug 25, 2027 |
| DR-4936 | Hawaii — Hawaii County | Earthquake (M6.0) | Active — Individual Assistance | ≈ Sept 1, 2027 |
| DR-4911, 4914, 4915, 4941, 4931 | Tribal reservations (AZ, MT, SD) and Rota, CNMI | Storms, flooding, typhoon | Active — Individual Assistance | About one year from each declaration — see tracker |
| DR-4944 | Colorado — Aspen Acres & Gold Mountain fires | Wildfires, flooding, mudslides | Watching | Public Assistance only — IA not granted |
| — | Texas — Randall County | Panhandle wildfires, May 2026 | Monitoring | No IA declaration found |
| FM-5645 | Oregon — Umatilla County | Lower Dry Creek Fire | FMAG only | Not a major disaster declaration |
Declaration dates are from FEMA's data and may differ by a day or two from press-release dates; confirm with Matthew.
Active — Individual Assistance means a major disaster declaration with Individual Assistance areas is in place, so eligible survivors there may be able to use 203(h) with no down payment. Watching / Monitoring means Public Assistance only, pending, or not declared. FMAG only means a fire-management grant, which doesn't by itself open 203(h). Every Individual Assistance county and parish is listed on the full current disaster areas tracker.
How the process works
- Confirm your area. Check that your county is in a major disaster declaration and note the declaration date. Matthew can help you read FEMA's designated-area list.
- Talk through your situation. Owner or renter, what happened to the home, insurance status, and whether you want to buy or rebuild.
- Gather documents. Proof you lived there, proof of the damage, and the usual income, asset, and credit documents.
- Get pre-approved. Standard FHA underwriting applies; disaster-related credit problems may be considered in context.
- Find the home or finalize the rebuild plan. The new home must meet FHA property standards and be your primary residence.
- Case number, underwriting, closing. Keep the one-year deadline in view throughout.
If you just lost your home: first steps
If the disaster just happened, a mortgage probably isn't the first thing on your mind — and it shouldn't be. Here's a practical order of operations:
- Safety first. Follow local officials on when it's safe to return. Don't enter a damaged structure until it's been cleared.
- Register with FEMA. If your county is designated for Individual Assistance, apply at DisasterAssistance.gov. Registration creates a record that can also help document your loss later.
- Open your insurance claim. Call your homeowner's or renter's insurer as soon as you can, and write down your claim number and adjuster's name.
- Document everything. Photos and video of the damage, receipts for temporary housing and supplies, and copies of every letter from FEMA, your insurer, or your county.
- Call your mortgage servicer if you have a mortgage. Ask about disaster forbearance and other options before payments become a problem. Read disaster mortgage relief options, and consider talking with a HUD-approved housing counselor (1-800-569-4287).
When you're ready to think about where you'll live next, Matthew can walk you through whether 203(h) fits. Matthew is licensed in multiple states, not everywhere — tell Matthew where the property is and he'll confirm he can help there.
Guides on this site
How 203(h) works
Eligibility pieces, declaration types, buy vs. rebuild, and costs.
Requirements checklist
Borrower, property, timing, and documentation — including for renters.
Current disaster areas
Status of recent declarations and how to check your county.
Michigan 203(h)
The April 2026 storms, 27 eligible counties, and the deadline.
Indiana 203(h)
DR-4933 · 24 counties · August 2026 storms.
Wisconsin 203(h)
DR-4923 · 19 counties + Oneida Indian Reservation.
Louisiana 203(h)
DR-4927 · Tropical Storm Arthur · 6 parishes.
Mississippi 203(h)
DR-4922 and DR-4930 · 9 counties.
West Virginia 203(h)
DR-4932 · storms, flooding, landslides.
Hawaii 203(h)
DR-4936 · Hawaii County earthquake.
Randall County, Texas
Amarillo and Canyon wildfire recovery options and status.
Rebuild with 203(h) + 203(k)
Repair or reconstruct instead of buying elsewhere.
Mortgage relief options
For people who already have a mortgage on a damaged home.
For Realtors
Helping displaced clients find a replacement home.
FAQ
Short answers to the most common 203(h) questions.
Frequently asked questions
Do I have to have owned my home to use 203(h)?
No. HUD's consumer fact sheet says people may be eligible whether they owned or rented the home that was destroyed or damaged, as long as it was their primary residence in a Presidentially declared major disaster area.
How long do I have to apply?
Generally, the FHA case number must be assigned within one year of the President's major disaster declaration date. Matthew will confirm the exact date for your county.
Do I need a down payment?
FHA 203(h) loans don't require the normal 3.5% minimum down payment that standard FHA 203(b) mortgages require — eligible disaster victims can finance up to 100% of the purchase price. Closing costs and prepaid items still have to be covered, and standard FHA underwriting applies.
Is a FEMA fire grant (FMAG) enough?
Usually not by itself. 203(h) depends on a Presidential major disaster declaration. See current disaster areas for how the declaration types differ.
Can Matthew help in my state?
Matthew is licensed in multiple states, not all of them. Tell Matthew where the property is and he'll confirm he can help there.
Find out if FHA 203(h) fits your situation
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
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