Emergency Financial help after a Disaster
By: Jennifer P., Published: Mar 5, 2020 | Related: Disaster Assistance
Having to deal with disasters of any kind can be very frustrating. A disaster can force you to relocate or replace the belongings damaged. The good news is that you do not have to go through such times alone. Many resources are available to help you through disasters.
Emergency Farm Loans
An emergency farm loan is given to farmers who have suffered great loss from a disaster. In order for farmers to qualify for this type of loan, their primary crop must have been damaged by at least 30%. However, you must note that this program is only given when all other lenders have denied you assistance.
One of the best sources for emergency farm loans is the United States Department of Agriculture Farm Service Agency. For your application to be considered, you have to fill two forms. First, you will be required to submit a form proving that you have been negatively affected by the disaster. In addition, you have to provide a form showing that all other lenders have denied your application for assistance.
The other important thing to note about this loan is that you must agree to go on farming to qualify. In order to get a loan of $100,000-$300,000, all you will need to do is submit one latter showing that a lender denied your application for the loan. You will be required to submit two letters if the loan you want is more than $300,000. For this application to be successful, make sure to submit the letters no more than eight months after the disaster. It is not mandatory to have crop insurance when the disaster strikes. However, before you apply for the loan, you will have to get the crop insurance. Once you get the loan, use it for:
• Paying the costs of production
• Paying for your family's necessities
• Replacing crucial property
• Refinancing operating costs
• No Down Payment Mortgage
In case your home got damaged during the disaster, you will qualify for insured mortgage. With the insured mortgage, you can either buy a new home or renovate the damaged one. The FHA (or Federal Housing Administration) also gives people more assistance to people whose houses got damaged by a disaster. Here is what you need to know;
• There are limits placed by the Department of Housing and Urban Development on the amount you can insure
• No down payment - when purchasing a new home, you can get a new one without a down payment. You will, however, need to pay all pre-paid expenses as well as closing costs.
• FHA mortgage costs money. Thus, borrowers have to pay an upfront premium to the lender. This amount can be financed. However, all monthly premiums should be added to your mortgage payment
Disaster Assistance Loans
Disaster assistance loans can be given to renters, homeowners, businesses and private organizations. This money can be used for repairing or replacing your property. This loan can also be used to replace the damaged assets. Go on the Small Business Administration site online and apply for the Disaster Assistance Loan. Also available under this are low-interest loans.
Home and Property Disaster Loans
It does not matter whether you are a renter or homeowner, you can borrow a loan of $40,000 for replacing appliances, cars, furniture and clothes. As a homeowner, you qualify for a loan of up to $200,000. However, you should not use this loan on a second home or vacation property. All you have to do is call the SMA or apply for the loan on the internet. An inspector can be sent to your home to assess the degree of damage.
Disaster Unemployment Assistance
In case the disaster affects you in such a way that you can no longer work, you will qualify for the Disaster Unemployment Assistance program. This program will also be available to you if your working hours were affected by the disaster. In addition, you should not be eligible for the regular unemployment benefits to qualify for Disaster Unemployment Assistance loans. To know whether this loan applies to you, visit the program for Disaster Unemployment Assistance. You can also check out the benefits associated with this loan. You will also get information on filing a claim.