Saferoom Financing

There has long been an emphasis on reducing loss of life and injury during major storm events in the United States. Today, many governmental and non-governmental bodies are realizing that saferooms provide a means of doing this in a logical and economical fashion. This has been shown by the availability of financing programs designed to reduce the financial burden on property owners wishing to have saferooms installed.

FHA Financing

The U.S. Department of Housing and Urban Development (HUD) now provides mortgage insurance that enables homebuyers to borrow up to $5,000 to create saferooms in their homes. Recognizing that storm shelters will save lives and prevent injuries when tornadoes and hurricanes strike, HUD is making it possible for more families to place these shelters in their homes.

The mortgage insurance will be provided by the Federal Housing Administration (FHA), which is part of HUD. Rather than making mortgage loans directly, FHA insures loans made by private lenders to homebuyers.

FHA insurance guarantees a lender timely payment of principal and interest, in the event a homebuyer defaults on a loan. As a result, HUD's new initiative will enable a lender to loan a homebuyer up to $5,000 more than the amount needed to buy a home, with the extra money used to pay for the cost of installing a windstorm shelter.

Designs for the saferooms financed with FHA-insured first mortgages must follow guidelines developed by the FEMA, with the cooperation of the Wind Research Center of Texas Tech University.

Here is a link to HUD

SBA Disaster Loans

Homeowners who receive a disaster assistance loan from the U.S. Small Business Administration (SBA) to repair or rebuild a damaged or destroyed home may use some of the loan proceeds to construct a safe room. The SBA can also increase the approved disaster loan by up to 20 percent to cover the cost of adding a safe room.

Here is a link to SBA information

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