Consider SBA loans for rebuilding after flooding
HOUSTON, Texas (KTRK) -- Homeowners who experienced damage during Harvey might be having a hard time getting their finances in check as they begin the process of rebuilding.
The government wants you to know about a loan option, in addition to FEMA funds.
They are called Small Business Administration (SBA) loans. The loans come with the lowest interest rate possible.
Loan officers at the SBA offices have already closed on thousands of disaster recovery loans for homeowners and business owners to rebuild.
Much like a bank, you still have to qualify, but there is not as much red tape.
Home loans have a rate of 1.7 percent, and you can borrow up to $200,000.
One school teacher who took advantage of the SBA loan says the process to apply has been easy because there are no fees and closing costs. She said the loan made financial sense.
"It gave me a longer period of time to pay the loan. It also provided an affordable interest rate for an amount of money I can work with," said Carolyn Day.
To apply, you have to first register with FEMA and then apply for an SBA loan.
The loans are 30 years and the first payment is not due for a year after you sign the loan.
Homeowners can qualify for this disaster loan whether they had insurance or not.
