How much can I borrow with a home disaster loan and what limits apply on use of funds and repayment terms?
13 C.F.R. § 123.105
in effectEffective: 2024-07-01(a) There are limits on how much money you can borrow for particular purposes. The limits in effect for disasters occurring on or after June 16, 2023 are as follows.
(1) $100,000 for repair or replacement of household and personal effects;
(2) $500,000 for repair or replacement of a primary residence (including upgrading in order to meet minimum standards of safety and decency or current building code requirements);
(3) $500,000 for eligible refinancing purposes;
(4) 20 percent of the verified loss (not including refinancing or malfeasance), before deduction of compensation from other sources, up to a maximum of $500,000 for post-disaster mitigation (see § 123.107); and
(5) $500,000 for eligible malfeasance, pursuant to § 123.18.
(b) You may not use loan proceeds to repay any debts on personal property, secured or unsecured, unless you incurred those debts as a direct result of the disaster.
(c) SBA determines the loan maturity and repayment terms based on your needs and your ability to pay. Generally, you will pay monthly installments of principal and interest, beginning twelve months from the date of the initial disbursement. SBA will consider other payment terms if you have seasonal or fluctuating income. The maximum maturity for a home disaster loan is 30 years. There is no penalty for prepayment of disaster loans.
(d) The SBA Administrator may increase the home loan lending limits within paragraph (a) of this section under an individual disaster declaration based on appropriate economic indicators for the region(s) in which the disaster occurred. SBA will publish any increased lending limit for an individual disaster declaration in the Federal Register.
Source: eCFRURL: https://www.ecfr.gov/api/versioner/v1/full/2024-07-01/title-13.xmlFetched: 7/26/2026