Loans for Homeowners Impacted by California Wildfires

If your home has been damaged by the recent California wildfires, the road to recovery can feel overwhelming. However, finding the right financial assistance is crucial. Fortunately, state and federal agencies, along with financial institutions, are stepping in to help by offering a variety of relief programs, including low-interest loans and mortgage assistance.

Whether you need help repairing or rebuilding your home or replacing lost property, understanding your options can make the recovery process a little smoother.

6 Financial Relief Options for Homeowners Impacted by California Wildfires

1. SBA Disaster Loans

One of the most widely available resources for wildfire victims is the U.S. Small Business Administration (SBA) Disaster Loan. Despite its name, this program isn’t just for businesses — it also provides low-interest loans to homeowners and renters in federally declared disaster areas. These loans can help with physical damage repairs, lost revenue, and ongoing expenses.

📌 Loan Details

• 💵 Loan Amounts: Up to $200,000 for primary residence repairs. Up to $40,000 for personal property losses.
• 🏠 Homeowners: Eligible for up to $500,000 to repair or replace damaged or destroyed real estate.
• 🏡 Renters & Homeowners: May receive up to $100,000 to replace personal property, including vehicles.
• 💰 Interest Rates: As low as 4% for businesses. 3.625% for nonprofits.2.563% for homeowners and renters. Repayment terms of up to 30 years.
• ⏳ Deferrals: Interest does not accrue for the first 12 months. Loan repayment can be deferred for 12 months from the first disbursement.
• 📜 Terms: Affordable interest rates with long repayment periods.

📋 How to Apply

• Apply Online: Visit SBA.gov/disaster to start your application.
• In-Person Assistance: Visit a Disaster Loan Outreach Center for one-on-one help.
• Call the SBA Customer Service Center: Dial (800) 659-2955 for application support.
• Email Support: Reach out to [email protected] for more details.
• Accessibility: Individuals who are deaf or hard of hearing can dial 7-1-1 for telecommunications relay services.

Applying early is highly recommended, as funding is processed on a first-come, first-served basis.

2. Federal Housing Administration 203(h) Disaster Loan

The FHA 203(h) Disaster Loan is a crucial resource for those looking to rebuild their lives after a natural disaster. With 100% financing, lenient credit requirements, and the option to relocate, it provides a valuable opportunity for first-time homebuyers and displaced families.

📌 Loan Details

• 🏠 Who Qualifies? Homeowners and renters in a Presidentially Declared Major Disaster Area (PDMDA).
• 💡 Usage: Buy a new home or rebuild an existing one.
• 💰 No Down Payment: 100% financing available.
• 📊 Credit Score: Minimum 500 (varies by lender).

⚠️ Limitations:

• Closing Costs: Buyers must cover costs unless paid by the seller.
• Loan Limits: Maximum amount depends on location.
• Not for Refinancing: Cannot be used to pay off an existing mortgage.
• Mortgage Insurance Required: Includes 1.75% upfront MIP plus monthly payments.

This loan offers a lifeline for disaster victims, making home ownership more accessible even after hardship.

📋 How to Apply

• Find an FHA-Approved Lender: Visit the HUD website to locate an FHA-approved lender.
• Gather Required Documents: Be prepared to provide proof of residency in the disaster area, employment verification, and financial statements.
• Apply Within One Year: Applications must be submitted within one year of the disaster declaration.
• Verify Disaster Area: Use FEMA’s online search tool to confirm eligibility.
• Need help? Call (800) CALL-FHA (1-800-225-5342) for more information.

3. Federal Housing Administration 203(k) Loan

The FHA 203(k) Loan helps homeowners finance necessary repairs or upgrades following a disaster by rolling renovation costs into their mortgage. This eliminates the need for a separate loan, making the rebuilding process more manageable.

📌 Loan Details

• 🏡 203(k) Limited (Streamline) Loan – Covers up to $35,000 for non-structural repairs and energy-efficient upgrades.
• 🏗️ 203(k) Standard Loan – Covers major renovations ($5,000 minimum), including structural repairs, with no upper limit (within FHA regional caps).

📋 How to Apply

• Submit an application to an FHA-approved lender within one year of the disaster declaration.
• Check eligibility: Use FEMA’s online search tool to verify disaster date and location.
• Need help? Call (800) CALL-FHA (1-800-225-5342) for more information.

4. Jewish Free Loan Association (JFLA) Fire Relief Loans

The Jewish Free Loan Association (JFLA) provides interest-free, fee-free loans to individuals, families, nonprofits, and small businesses affected by wildfires. Available to residents of Los Angeles, Ventura, and Santa Barbara counties, these loans offer financial relief regardless of faith or background.

💰 Loan Amounts: Up to $15,000 for essential expenses, including temporary housing, clothing, medical bills, and other emergency needs.

✅ No Guarantor Required: Applicants can receive up to $2,000 without needing a guarantor, allowing for quicker access to funds.

📌 How to Apply: Applications are reviewed on a first-come, first-served basis. To apply, visit jfla.org and complete the online application.

5. ReCoverCA Homebuyer Assistance (HBA) Program

The ReCoverCA Homebuyer Assistance (HBA) Program supports low- to moderate-income households impacted by past California wildfires, helping them purchase a home outside high-risk fire areas.

💰 Loan Details

• Loan Amounts: Up to $350,000 in assistance, provided through a forgivable second mortgage loan to help bridge the gap between affordability and home cost.
• Interest Rate: 0% (forgivable if program conditions are met).
• Loan Term: Typically 30 years, with forgiveness after a set period if residency requirements are met.
• No First-Time Buyer Requirement: You do not need to be a first-time homebuyer to qualify.
• Forgivable Loan: The loan may not need to be repaid if you meet all program conditions, such as remaining in the home for a specified period.

📌 Who Qualifies?

• Lived in a High or Very High Fire Hazard Severity Zone within a qualifying area in 2017.
• Meet income limits (approximately 80% of the area’s median income).

📝 How to Apply

• Use the Preliminary Eligibility Tool to check if you qualify.
• Connect with a ReCoverCA HBA Lender—they’ll guide you through the process, confirm your eligibility, provide interest rate details, and help you complete your application.

6. Credit Union Disaster Relief Loans

Many local credit unions are offering specialized loans to members impacted by wildfires, providing financial relief through low-interest loans, deferred payments, and emergency assistance programs.

💰 Loan Details

• USC Credit Union: Offers low-rate relief loans and loan deferment options for members.
• Credit Union of Southern California (CU SoCal): Provides Emergency Essentials Loans of $1,500 at 0% interest for six months to help with urgent needs.
• California Credit Union: Offers loan payment assistance and allows penalty-free withdrawals from certificates for wildfire victims.
• Eligibility: Varies by institution—contact your local credit union for specific loan terms and requirements.

📝 How to Apply

• Visit your local credit union branch or check their official website for eligibility requirements and loan application details.
• Call customer service to speak with a loan specialist who can guide you through available disaster relief options.

Take the time to explore your options, reach out to lenders, and ask for assistance when needed. Help is out there, and with the right financial tools, you can start rebuilding your future.