NAR Supports Flood Mitigation Loan
Last week NAR joined forces with a coalition of groups to urge HUD to make flood mitigation an explicit eligible use of the FHA 203k loan program. The 203k loan allows for the repair and rehabilitation of single family properties. Borrowers use a 203k for a purchase or refinancing of a home, that includes the cost of renovation or remodeling. The 203k has been used successfully in post-disaster areas for renovation of damaged homes. NAR believes that flood mitigation is already an eligible 203k activity, but there has been confusion in some areas, and some lenders are not sure.
The letter asks HUD to make it clear that the 203k can be used for pre-disaster mitigation to homes. NAR believes the 203k loan could be a valuable tool to homeowners facing large flood insurance premiums who wish to mitigate the risk of flood damage.