How to Get a Home and Property Disaster Loan

The U.S. Small Business Administration (SBA) offers disaster relief for home and property. People living in declared disaster regions are eligible but certain qualifications exist. These particular loans apply to those who own their homes or property or rent. Follow these steps to apply.

Difficulty: Moderate

Instructions

1. Find out if the government officially marked your neighborhood a Declared Disaster Area. This information is funneled through the government to your area.

2. Contact your personal homeowner's insurance provider for coverage. Any amount they pay is deducted from the total cost of damage to your home or property. The difference is what the SBA looks at.

3. Check the current interest rates for the loan. These are 30-year loans up to $200,000 for homes, and $40,000 loans covering personal effects for both owners and renters.

4. Determine your ability to repay the loan. This is a credit requirement.

5. Look for possible collateral for your loan. The SBA seeks collateral on loans over $10,000 dollars. You aren't disqualified if you lack collateral. The SBA takes your situation into account.

6. Know what is eligible and ineligible for a home disaster loan. Second homes, boats, planes or vehicles considered recreational are not covered by the SBA. Limitations are placed on certain items in and around the house, such as antiques and swimming pools.

7. See if you had any SBA loans that you defaulted on. Remember to keep current any terms for insurance from previous loans. If the loan stated you must maintain flood or hazard insurance and you didn't, the SBA sees that as a default. No loan approval when a second disaster occurs.

8. Contact the SBA service center at sba.gov for application and other information. Or contact local officials to begin the process.