How to Get a Home and Property Disaster Loan

What it is

A home and property disaster loan is a long-term loan of 30 years that are available to farmers, businesspersons, homeowners, or personal-property owners. The Department of Agriculture administers these loans. The financial assistance goes up to $200,000 for real estate, including the repair or restoration of the primary home to its pre-disaster condition and $40,000 for personal property, including clothing, furniture, automobiles and other personal property. Personal property is anything that is not considered real estate or a part of the actual structure. The loan may not be used to replace items that are extraordinarily expensive or irreplaceable, such as antiques, pleasure boats, or fur coats.

Extra financing may be available to homeowners who wish to upgrade their homes to protect them from possible future disasters of the same kind. The amounts available to applicants can be affected by insurance payments applicants may receive. Interest rates for those who cannot obtain a commercial loan will be determined by an applicant's ability to obtain financing elsewhere. Those who are able to obtain financing elsewhere will be charged up to eight percent each year. The term of these loans is generally up to 30 years.

Who it's for

Many people find themselves in need of a home and property loan after disaster strikes. If you are in a declared disaster area and are the victim of a disaster, you may be eligible for a home and property disaster loan. Even though this loan program is administered through the SBA, you can be approved for a loan even if you don't own a small business.

What you need to do to apply

In order to be approved for an SBA home and property disaster loan, you must demonstrate that economic injury has occurred.

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