How it works
FHA 203(h) is FHA's disaster-relief variant. For borrowers whose prior primary residence was destroyed or rendered uninhabitable by a Presidentially Declared Major Disaster Area, it waives the standard 3.5% FHA down payment — 100% financing.
For California, this is highly relevant given the state's wildfire frequency. The 2025 Palisades and Eaton fires in LA County, prior Camp Fire and Tubbs Fire declarations, and ongoing PDMDA cycles all generate 203(h) eligibility for impacted borrowers. The 1-year application window from the disaster declaration date is strict — borrowers who delay miss the benefit.
CalHFA offers a 203(h) wrap (the CalHFA 203(h) Disaster product) that adds DPA on top of the zero-down 203(h) first mortgage. This is a uniquely California stack — verify availability with CalHFA at time of quote, especially during active wildfire seasons.
Who it's for
California wildfire survivors and other PDMDA-impacted borrowers whose prior primary residence was destroyed or made uninhabitable by a federally declared disaster.
Eligibility at a glance
- First-time buyer?
- No
- Minimum FICO
- 580
- Maximum DTI
- 57%
- Income limit
- None.
- Homebuyer education
- Not required.
- Priority categories
- Borrowers in Presidentially Declared Major Disaster Areas (PDMDA)
Repayment terms
Standard FHA 30-year amortizing first mortgage. UFMIP 1.75% + annual MIP per FHA schedule. No DPA second — the program eliminates the down payment entirely.
Term
30 years
Due at
30-year amortization
Property rules
- Eligible property types
- Single-family residence, FHA-approved condo, PUD, 2-4 unit
- Owner-occupancy required
- 1 years
Layering & first mortgage options
Works with these first mortgages: FHA 203(h) (standalone)
CalHFA offers a 203(h) wrap that can add DPA. GSFA/Chenoa can sometimes be layered — confirm program-specific rules.
Stacks with
How to apply
Process: Application MUST be submitted to lender within ONE YEAR of the Presidential disaster declaration. Borrower must document destruction/uninhabitability of prior residence in the declared area.
Funding cycle: Continuous when declared disaster active.
Typical timeline: 30-45 days (disaster documentation adds underwriter review time).
Things that trip borrowers up
- 1-year application window from disaster declaration date — strict.
- Borrower must document destruction/uninhabitability of prior residence with insurance claims, FEMA disaster registration, photos.
- Not all FHA-approved lenders' DE underwriters handle 203(h) — verify before quoting.
- FEMA disaster declaration list refreshes — confirm property is in active PDMDA before quoting.