Home Equity Loan In A Disaster Area
A home in a FEMA-declared disaster area can still qualify for a HELOC or home equity loan. The extra step is a post-disaster inspection or updated valuation showing the home was not adversely affected.
What changes after a disaster declaration
The extra steps confirm the disaster did not damage the home or affect its value.
- The disaster rules apply to FEMA-declared areas eligible for individual assistance.
- If your home was valued before the incident period ended, a new valuation or a post-disaster inspection is needed.
- An appraisal done after the incident period ends includes the appraiser’s certification that the home is free from damage.
- The inspection can be done by the original appraiser, another licensed appraiser, or a licensed property inspection company.
- When the home is valued with an AVM, at least one program uses a property condition report showing no material damage.
- Depending on the program, the disaster rules apply for 60 or 90 days after the incident period ends.
Inspection instead of new valuation
Your original appraiser can re-inspect
Disaster housing events not counted
Extra time on credit reports
Options while FEMA dates are pending
AVM condition report option
How Disaster Area Reviews Work
The steps depend on when your home was valued compared with the FEMA disaster dates.
FEMA publishes an incident period and a declaration date once an area is declared. The disaster rules start on the incident period begin date. An appraisal or property inspection done before that date needs a re-inspection or review.
If your home was valued before the incident period ended, at least one program accepts either a new valuation dated after the end date or a post-disaster inspection. If the appraisal is done after the incident, at least one program requires no additional documentation.
If FEMA has not posted an end date yet, at least one program accepts an appraisal dated on or after the declaration date until the inspection arrives. For an ongoing disaster, at least one program also asks for a dated area map from a state or county agency showing the home is outside the current disaster boundaries.
Why choose Saxton for a home equity loan after a disaster
This page is for homeowners in a FEMA-declared disaster area who want a HELOC or home equity loan.
We Check The FEMA Dates First
We compare your appraisal date with the FEMA incident period before ordering anything. An appraisal or inspection done before the incident began needs a re-inspection or review.
More Than One Valuation Path
Some programs accept a post-disaster inspection, some accept a new valuation, and at least one accepts an AVM with a property condition report showing no material damage.
Credit Events Read In Context
In at least one program, housing events caused by a FEMA declared natural disaster do not count as a credit event instance. We look for the program that reads your history that way.
We Watch The Timeline
At least one HELOC we offer can extend the credit report timeline by 15 days when the home is or becomes located in a disaster area. We plan around that so your file does not expire mid-process.
Repairs Get Documented Right
If an inspection finds damage, completion of repairs is shown with an appraisal update or completion report that includes interior, exterior, and neighborhood photos. We tell you up front what that report needs to show.
Nearby Events Count Too
At least one program also reviews earthquakes, hurricanes, floods, landslides, tornadoes, and wildfires near the home, even before a formal declaration. We flag those early so the review does not surprise you at closing.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers on HELOCs and home equity loans in FEMA-declared disaster areas.
Yes. At least one HELOC we offer accepts a home in a FEMA declared major disaster area where individual assistance was granted. It needs a new valuation dated after the incident period ends or a post-disaster inspection confirming the home was not adversely affected.
Not always. If your home was valued before the incident period ended, at least one program accepts a post-disaster inspection instead of a new valuation. If the appraisal is dated after the disaster incident, at least one program requires no additional documentation.
The original appraiser, another licensed appraiser, or a licensed property inspection company, under at least one program. The inspection confirms the home is free from damage and the disaster had no effect on value or marketability.
60 or 90 days, depending on the program. At least one program follows them for 60 days from the incident period ending date or the date of the event, whichever is later. Another applies them to loans with a note date within 90 days of the end of the incident period.
Your file can still move forward. At least one program accepts an appraisal dated on or after the disaster declaration date until the property inspection arrives. A property inspection is still required before closing.
Not in at least one program. Housing events, including forbearance and modification, caused by a FEMA declared natural disaster do not count as a credit event instance there. Another program has no waiting period if you accepted a forbearance plan but did not use it.
The loan waits for a report showing no damage. At least one program accepts a post-disaster inspection report or an appraisal update that names the disaster. Your employment may also be verified again if the disaster happens after it was first checked.
Find out what you qualify for
Tell us about your home, the FEMA disaster dates, and when it was last appraised, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.