How to Get a Home and Property Disaster Loan
Know whether you qualify., Know the extent of the program., Know what affects the rate of the loan.
Step-by-Step Guide
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Step 1: Know whether you qualify.
This SBA loan is the only type of assistance that it administers which is available to homeowners, renters, and/or other personal property owners whether or not they own or operate a small business.
The homeowner or renter must live in a county declared a disaster area and have sustained physical property damage to apply for the loan. -
Step 2: Know the extent of the program.
A real property loan up to $200,000 is available to homeowners for the repair or replacement of their primary residence.
Upgrades to the home are permissible only to meet building code requirements and some loans may be increased up to 20% to protect the property from similar future disasters.
Secondary or vacation homes are not eligible for this loan.
Additionally, a personal property loan up to $40,000 is available to homeowners or renters to replace such property as automobiles and personal property not considered real estate.
If you have insurance, the amount that you receive in insurance for your personal property or home will be deducted from the amount of the loan that you can receive. , The SBA makes an initial determination as to whether the applicant can obtain a loan elsewhere.
Based on that determination, the applicant's interest rate will vary.
The interest rate will not exceed 4% if the applicant cannot obtain credit elsewhere or will not exceed 8% if the applicant can obtain credit elsewhere.
SBA loans are based on the ability to repay and can extend to a term of 30 years. -
Step 3: Know what affects the rate of the loan.
Detailed Guide
This SBA loan is the only type of assistance that it administers which is available to homeowners, renters, and/or other personal property owners whether or not they own or operate a small business.
The homeowner or renter must live in a county declared a disaster area and have sustained physical property damage to apply for the loan.
A real property loan up to $200,000 is available to homeowners for the repair or replacement of their primary residence.
Upgrades to the home are permissible only to meet building code requirements and some loans may be increased up to 20% to protect the property from similar future disasters.
Secondary or vacation homes are not eligible for this loan.
Additionally, a personal property loan up to $40,000 is available to homeowners or renters to replace such property as automobiles and personal property not considered real estate.
If you have insurance, the amount that you receive in insurance for your personal property or home will be deducted from the amount of the loan that you can receive. , The SBA makes an initial determination as to whether the applicant can obtain a loan elsewhere.
Based on that determination, the applicant's interest rate will vary.
The interest rate will not exceed 4% if the applicant cannot obtain credit elsewhere or will not exceed 8% if the applicant can obtain credit elsewhere.
SBA loans are based on the ability to repay and can extend to a term of 30 years.
About the Author
Kayla Phillips
Dedicated to helping readers learn new skills in home improvement and beyond.
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