HUD 203 (h) Hurricane Katrina
I live in Oklahoma City and want to move to Tampa. I recently applied and got approved for a 203h loan for hurricane katrina. My husband was left off the application because there was some things on his credit report. I was arguing the fact that both of our credits were really good before the storm and suffered significantly after. The credit reports have reflected that.
The underwriting requirements are beginning to aggravate me even though I read that the requirements were not supposed to be as strict with hurricane katrina. I have submitted so much paper work. I have submitted credit reports, w2s, bank statements, rent payments, bill payments, etc. Now they are telling me that my explanation for why we went into debt is not good enough and we would need to explain this better in order to meet their requirements. As I understand, all you have to do is prove that you had good credit before the hurricane and that should make you a satisfactory risk.
The 203 h loan also makes it possible for you to live anywhere in the US. They have now gone from requiring that I explain some things on my husband's credit report, to saying that he needs a source of income. I advised them that he was laid off in January and is currently receiving unemployment. There are saying that is not enough. He needs a job. We are moving to Tampa and I recently got a job and will start on May 12th.
When this loan was originally offered in 2005, I know we would not have had all those items they are asking for because we lost everything in the disaster. We were both on unemployment then as well. Anyone who lost their homes were on unemployment. So, why should it be any different now? We did not know about this program in 2005. None of family back home in Mississippi knew about it. It was not something that was widely publicized and made available to people that was displaced; not even locally for that matter. I called HUD and they do not know much about it, even though it has a number to call them and it is on their website. Please give me some input on the requirements of this loan and why we have to go through so much on something we are entitled to. Thanks.