How to Get a Home and Property Disaster Loan

The effects of a natural disaster such as a tornado, hurricane, or an earthquake on your life can be immense. The impact of such an event on your personal property can have substantial costs to you. Given the unexpected

nature of natural disasters, and the difficulty recovering from them, government programs exist to help disaster victims start on the path to recovery. One such program of recovery is the Home and Property Disaster Loan

administered by the U.S. Small Business Administration known as the SBA. While the loan can help disaster victims, there are several things to know to secure the loan.


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    Know whether you qualify. This SBA loan is the only type of assistance that it administers which is available to homeowners, renters, and/or other personal property owners whether or not they own or operate a small business. The homeowner or renter must live in a county declared a disaster area and have sustained physical property damage to apply for the loan.
  2. Image titled Get a Home and Property Disaster Loan Step 2
    Know the extent of the program.
    • A real property loan up to $200,000 is available to homeowners for the repair or replacement of their primary residence. Upgrades to the home are permissible only to meet building code requirements and some loans may be increased up to 20% to protect the property from similar future disasters. Secondary or vacation homes are not eligible for this loan.
    • Additionally, a personal property loan up to $40,000 is available to homeowners or renters to replace such property as automobiles and personal property not considered real estate.
    • If you have insurance, the amount that you receive in insurance for your personal property or home will be deducted from the amount of the loan that you can receive.
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    Know what affects the rate of the loan. The SBA makes an initial determination as to whether the applicant can obtain a loan elsewhere. Based on that determination, the applicant's interest rate will vary. The interest rate will not exceed 4% if the applicant cannot obtain credit elsewhere or will not exceed 8% if the applicant can obtain credit elsewhere. SBA loans are based on the ability to repay and can extend to a term of 30 years.


  • Assistance completing the application for a SBA loan may be available.
  • Applicants have the option of applying on-line for a SBA loan.
  • You may also qualify for the 203h Disaster Recovery Loan administered by the FHA. You qualify if you are a resident affected by or have a home within a presidentially declared natural disaster area and would meet FHA

guidelines to qualify for the loan. Money for the loan can be used to reconstruct a completely destroyed home, purchase a new home or rehabilitate a partially destroyed home. Another benefit is that Housing and Urban

Development (HUD) can prevent a current lender from foreclosing on your property for up to 90 days so that you can get your finances together.


  • It is important to remember that you are acquiring a loan which you will be required to pay back.
  • The SBA loan will not cover irreplaceable property of extraordinary value.

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Categories: Mortgages and Loans