HUD Announces Disaster Assistance for New Mexico
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UPDATED: Dec 1, 2011
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The U.S. Housing and Urban Development (HUD) announced this week they will provide disaster assistance to New Mexico homeowners and low-income renters who were forced to flee their homes as a result of flooding in August.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Shaun Donovan, the secretary of HUD, in the release.
HUD’s disaster assistance includes:
- Allowing the State of New Mexico the ability to re-allocate existing federal resources toward disaster relief. New Mexico can redirect millions of dollars to those areas that are in dire need of funding through HUD’s Community Development Block Grant (CDBG) and HOME program.
- Instating an immediate 90-day foreclosure moratorium on FHA-insured home loans in an effort to grant foreclosure relief.
- Providing FHA insurance to disaster victims who lost their homes in the flooding. Borrowers who had FHA-insured mortgage loans are eligible for 100 percent financing that requires no down payment to qualify.
- Granting new mortgages and refinances to those who lost their homes or suffered damage to their homes. This allows homeowners to combine the cost of repair and the original mortgage into a single monthly payment. The cost of repair must be $5,000 or greater in order to qualify for this payment consolidation plan.
- Federally guaranteed loans for state and local governments to provide housing rehabilitation. These loans allow individual counties and cities the opportunity to assist in rebuilding and renewing entire neighborhoods or blocks.
This aid and foreclosure relief has come as a result of President Obama issuing a disaster declaration for two counties and two Indian Reservations in New Mexico.