Low-interest loans for Sandy victims

TOMS RIVER, N.J. (WABC) -- So many people in our area are still recovering from Superstorm Sandy and looking for ways to rebuild.

There's a way to get money and most people don't even know about it!

This offers hope to people who had been shut out.

Some homeowners wanted to rebuild but couldn't afford to meet new elevation requirements.

The loans will really help those borrowers in limbo whose homes are badly damaged but still want to renovate and not demolish.

It's been a long road to get their home back to where it needs to be.

The living room and all the rooms in the Braden's Toms River ranch house had to be gutted down to the studs.

So what was damaged inside, what did you lose?" 7 On Your Side's Nina Pineda asked.

"Pretty much everything," said Cheryl Braden, the homeowner, "The washer, dryer, fridge."

"And baseboard heating," said Bill Braden, the homeowner.

Their home was declared uninhabitable; the Braden's say that closed the door on most conventional bank loans.

Flood insurance payouts were a fraction of what they needed.

So the house sat, rotting. Cheryl and Bill and their two kids lived apart while trying to figure out how to come home again.

"It was just sheer luck we found out about it! Put me in touch with someone who does mortgages," Bill Braden said.

The loan they were able to get was through a federal 203(k) loan program. It allowed the Braden's to refinance their damaged property and roll the estimated cost of renovation repairs into their new mortgage payment.

"Sandy victims just don't know it's out there," said Jeff Onofrio, of AnnieMac Home Mortgage.

Mortgage broker Jeff Onofrio says the FHA backed low-interests loans are an option for those who don't qualify for other lending.

"Most convention loans are not going to finance a home in this type of shape. We looked beyond what was going on with the house in its current state and we looked at what it was going to be like when it was completed," Onofrio said.

"This house is two and a half feet higher," Bill Braden said.

The Braden's qualified for an $185,000 loan, enough to raise the foundation and add a second level.

But most importantly, it allowed the newlyweds and their blended family to stay in the home Sandy forced them out of nearly two years ago.

"Knowing that we starting, we're making progress, I have the permit let's go!" Bill Braden said.

Those are words so many victims would love to hear.

The big takeaway is before you apply you should know the loan eligibility requirements.

First, the property has to be a Primary Residence.

It has to fall within one of the federally declared disaster areas.

And a 3.5% down payment is required.

And of course good credit will also help with qualifications.