Can an owner get an SBA disaster loan for a damaged home?
Short answer
Yes. SBA lends homeowners up to $500,000 to repair or replace a primary residence, and up to $100,000 for personal property. The damage must be in a declared disaster area. Second homes do not qualify (sba.gov/disaster, read November 8, 2026).
Yes, SBA disaster loans also go to homeowners and renters in declared disaster areas. SBA's disaster page sets the terms (read November 8, 2026).
Amounts
- Primary residence: up to $500,000 to repair or replace it.
- Personal property: up to $100,000 for homeowners and renters. SBA's examples are clothing, furniture, cars and appliances.
Insurance
These loans cover losses not fully covered by insurance or other sources. Insurance proceeds may be deducted from the eligible amount.
Limits on use
You may not use the funds to upgrade a home or make additions, unless the local building code requires it. Proceeds may not replace profits.
Mitigation
SBA says you may be eligible for a loan amount of 20% of total damages, as SBA verifies it.
Refinancing an existing mortgage
SBA can refinance all or part of a previous mortgage in some cases. You must lack credit available elsewhere and have substantial disaster damage.
Terms and collateral
The first payment is deferred for 12 months, with no interest accrual in that period. Repayment can run up to 30 years, with no prepayment penalty. CollateralProperty a lender can take and sell if a loan is not repaid. is required to the extent possible over $50,000 in Presidential declarations and $14,000 in SBA administrative declarations. SBA will not decline a loan for lack of collateral.
Second homes and rentals
Secondary homes and vacation properties are not eligible. Qualified rental properties may qualify under the business physical disaster program.
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