GULFPORT, Miss., Dec. 12, 2006 (PRIME NEWSWIRE) -- Hancock Bank mortgage executives announced today that the 107-year-old company will offer an innovative new type of disaster relief construction loan to assist Gulf South homeowners repairing or rebuilding homes in areas affected by hurricanes Katrina and Rita. The Hancock Bank Home Recovery Construction Loan is a unique product that will allow homeowners to borrow up to 103 percent of the appraised value of the home.
"This type of loan takes into account the challenges homeowners face in trying to rebuild or repair their homes after such devastating events," said Hancock Bank Mortgage Division Manager Dan Zoble. "Being able to borrow up to 103 percent of the appraised value of the home allows a homeowner to obtain funding for rebuilding. The homeowner uses the extra three percent for closing costs and prepaid items."
Unlike conventional mortgage loans which require down payments of 10 to 20 percent, the Hancock Bank Home Recovery Construction Loan requires no down payment. The loan allows for construction periods up to 18 months, during which borrowers are required only to make interest-only payments, further reducing the homeowner's financial burden. Hancock Bank officials expect the new loan product to be welcome news not only to residents trying to recover and rebuild from the 2005 storms but also for individuals considering returning to the Gulf Coast region to live.
The new loan is available only in Federal Emergency Management Agency (FEMA) designated disaster areas for hurricanes Katrina and Rita. Additionally, Fannie Mae (NYSE:FNM) -- a financial services company that serves the home mortgage industry by working with lenders to provide accessible, affordable financing -- must approve those areas. Fannie Mae will buy the eligible loans from Hancock Bank.
"In banking terms, this is an extraordinary measure; but this is what is needed to keep our rebuilding process moving forward," said Zoble. "We are very pleased that we could work with Fannie Mae to offer this new loan."
Zoble added that this new loan can help
-- Homeowners who were underinsured or had no insurance
-- Homeowners whose homes suffered moderate to significant damage
-- Homeowners with significant equity prior to the hurricanes
-- Homeowners living in areas experiencing sufficient property sale
activity to make an accurate appraisal possible
The loan is available to homeowners already living in affected areas as well as anyone wishing to purchase homes and property in the storm zones. The loan can be used to rebuild, repair, or enhance property. Terms for the new disaster relief construction loan also allow more relaxed credit guidelines and debt load limits. Additional details are available at www.hancockbank.com or by calling Dan Zoble at (228) 822-4040.
"We expect this product to help those homeowners across the coastal areas who have struggled to find the financing to complete their repairs," said Debbie Tretler, vice president of Fannie Mae's Single Family Disaster Response Team. "As families work to restart their lives, we are hopeful this product can provide a good financial alternative to homeowners."
Hurricanes Katrina and Rita left unprecedented levels of destruction along the Louisiana and Mississippi coastlines. In South Mississippi, Hurricane Katrina destroyed approximately 70,000 homes. The storm's floodwaters affected 80 percent of the city of New Orleans.
Hancock Bank and its associates experienced first-hand the devastation and subsequent challenges the storms imposed on the company's nearly 2,000 employees in four states. Since the storm, Hancock Bank has received national recognition for leadership in the Gulf Coast's recovery, rebuilding, and renewal after America's worst natural disaster. The bank demonstrated exceptional performance in a challenging post-storm business climate, growing $1.6 billion -- more than in the company's first 95 years -- in the four months following Katrina.
"The Hancock Bank Home Recovery Construction Loan is another example of Hancock's inherent community commitment and exemplifies our corporate pledge to founding ideals of strength and stability, honor and integrity, commitment to service, teamwork, and personal responsibility," said Zoble.
About Hancock Bank
Hancock Holding Company -- the parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Magna Insurance Company -- has $6.26 billion in assets. Founded in 1899, Hancock Bank stands among the strongest, safest financial institutions in the United States, according to the Veribanc, Inc., and BauerFinancial, Inc., and is the only financial services company headquartered in the Gulf South to rate among the top 25 of America's top-performing banks.
Hancock offers comprehensive financial solutions through more than 140 banking and financial services offices and more than 130 automated teller machines throughout South Mississippi, Louisiana, southern Alabama, and the Florida Panhandle, including subsidiaries Hancock Investment Services, Inc., Hancock Insurance Agency and its divisions of Ross King Walker and J. Everett Eaves, Harrison Finance Company; corporate trust offices in Gulfport, Jackson, MS, Baton Rouge, and downtown New Orleans; and a business financial center in Alabama's port city of Mobile. Additional corporate information and on-line banking and bill-pay services are available at www.hancockbank.com.