HUD Offers $200 Million in Hurricane Recovery Assistance

The Department of Housing and Urban Development (HUD) has initiated a $200 million Mortgage Assistance Initiative designed to assist up to 20,000 families displaced by Hurricanes Katrina and Rita. Under this unprecedented program, HUD will make mortgage payments for up to one year for disaster victims with FHA-insured mortgages who want to start living in their homes again.

To be eligible for this mortgage assistance, families must have homes that are repairable and located in a presidentially declared disaster area that is designated for individual assistance. Earlier this summer, HUD began making mortgage payments for qualifying displaced homeowners who were in default. Under the new Mortgage Assistance Initiative, HUD will begin making advance mortgage payments on behalf of borrowers for up to 12 months.

Complete details on the Mortgage Assistance Initiative can be found in this HUD Web page.

Also See:
SBA Hurricane Recovery Loans Hit $1 Billion
Bush's Plan to Rebuild the Gulf Coast
Federal Response to Katrina