The Impact of Hurricane Season on Mortgages: What Homeowners Need to Know

Hurricane season is upon The Sunshine State, and the National Oceanic and Atmospheric Administration (NOAA) says 2022 could get rocky. FLCBank wants our mortgage brokers, home buyers, and small business owners to stay in-the-know regarding home loans and mortgage payments in the event of a weather disaster.

Mortgage Assistance/Forbearance

If a hurricane or flood damages your home, or if you’ve lost employment due to a natural disaster, mortgage assistance may be available. 

Depending on the severity of the event, mortgage forbearance may come into play.

Home loan forbearance allows homeowners to make partial or delay complete payments for a set period, usually six months. This time frame can be extended in extreme cases. Always go through your lender to understand the terms of your mortgage loan and for help applying for assistance or forbearance status

How Different Backed Loans Work

For homeowners with “backed” loans (loans insured by the federal government), mortgage payments may be able to be suspended for a period. These types of loans include Fannie Mae, Freddie Mac, and FHA (Federal Housing Administration) loans.

It’s important to note that late payment fees may be waived during a disaster period, but the interest will still accrue. Also, never stop payments to your mortgage until you’ve spoken to a lending officer and filed the appropriate paperwork, as this could negatively impact your credit score.

Florida Capital Bank Can Help After a Disaster

The FLCBank team can coordinate with loan officers and insurance companies to help homeowners with damages, repairs, insurance claims, and more. We can also walk you through how choosing forbearance or mortgage assistant relief will impact your rates, balances, and interest.

If your property sustained hurricane damage, one of our experienced lenders can guide you through choosing a disaster-related loan to make home repairs or a loan to purchase a new home.

For more information about loans and mortgage options during a weather disaster, contact FLCBank’s mortgage division today. Headquartered in Jacksonville, with branches in Orlando, Gainesville and Tampa Bay, we understand Florida’s unique hurricane season challenges. Together, we can find a solution that works to get your home — or your small business — back on its feet after a disaster.