FHA 203(h)
FHA 203(h) loans: rebuilding after a disaster
If your home was destroyed or seriously damaged in a presidentially declared disaster, FHA's Section 203(h) program lets you buy or rebuild with no down payment. This is a distinct program from a standard FHA purchase loan, built specifically for this situation. Given Texas's Gulf Coast hurricane exposure and periodic flooding around Houston and other regions, this is a program worth knowing about before you need it, not just after.
What 203(h) covers
- 100% financing, no down payment required, for eligible disaster victims
- Available to both homeowners and renters who were displaced, not just people who held a mortgage on the destroyed home
- Can be used to purchase an existing home or to rebuild the damaged one
- The new home does not have to be in the same location as the one that was lost — you can relocate to a different Texas city and still qualify
Standard FHA county loan limits apply, same as a regular FHA purchase — see the 2026 Texas county loan limits.
Who qualifies
- The previous residence, owned or rented, must have been located in a Presidentially Declared Major Disaster Area (PDMDA) as designated by FEMA
- The home must have been destroyed or damaged to the extent that rebuilding or replacement is necessary — minor damage doesn't qualify
- The property being purchased or rebuilt must become your primary residence. Second homes and investment properties don't qualify
- Standard FHA credit and income underwriting still applies. This program waives the down payment, not the borrower qualification process
The one-year deadline
Your FHA case number must be assigned within one year of the disaster declaration date. Miss that window and 203(h) is off the table.
Extensions are sometimes granted in prolonged recovery situations, but don't count on one. Apply as early as you reasonably can.
Check FEMA's own disaster declaration lookup at fema.gov/disaster/declarations to confirm your area and the declaration date. We can't determine whether a specific address falls inside a declared area — FEMA's designation is the authority on that.
What to have ready
- FEMA documentation or confirmation of the disaster declaration
- Insurance claim paperwork, if applicable
- Proof of prior residency at the damaged property (mortgage statements or lease history)
- Standard income and asset documentation for underwriting
For the full document list and what happens at each stage, see the FHA loan process.
This site is not affiliated with or endorsed by HUD, the FHA, or any government agency. Rate and payment examples are estimates for illustration only. Rates are subject to change and this is not a commitment to lend. Actual APR depends on credit, occupancy, loan amount, and property details. Eligibility for Section 203(h) is determined by FHA guidelines and FEMA disaster designations, and is confirmed by the underwriter for your file.