Financial help for wildfire victims: grants, loans, and debt relief (2026)

Wildfire recovery is a financial emergency layered on top of a personal one. This guide focuses on the money side: what aid is available, in what order to pursue it, and what to do if emergency spending has already piled up on credit cards.

Step 1 — Register with FEMA immediately (if a disaster is declared)

If your county is included in a federal disaster declaration, your first call is to DisasterAssistance.gov or 1-800-621-FEMA (3362). The Individuals and Households Program (IHP) can provide:

• Housing assistance grants — up to roughly $43,900 (2024 cap, adjusted for inflation) for temporary housing, home repair, or replacement of a primary residence that insurance doesn't cover.
• Other Needs Assistance (ONA) — for personal property, childcare, medical expenses, and other essential items.

These are grants, not loans — you do not repay them. However, FEMA's IHP is designed to fill critical needs, not to fully restore a home to pre-disaster condition. Registering also triggers your referral to the SBA disaster loan program (Step 2), so applying to FEMA is almost always the right first move even if you are not sure you qualify.

Check the FEMA disaster declaration map to confirm your county is covered. If it is not, contact your state emergency management agency — state-only declarations sometimes unlock separate state programs.

Step 2 — Apply for an SBA Home Disaster Loan

The SBA Home Disaster Loan is the largest and most underused program for underinsured homeowners. Key facts:

• Up to $500,000 for real property (the home structure itself) and up to $100,000 for personal property.
• Interest rates have been as low as 1.563% for applicants who cannot get credit elsewhere; rates for others have been around 3–4%. Terms can extend to 30 years.
• Available to homeowners and renters in presidentially declared disaster areas.
• Funds can cover the gap between your insurance payout and actual rebuild cost.
• No prepayment penalty.

Apply at SBA's disaster loan portal or through DisasterAssistance.gov. There is no obligation to accept the loan if you receive an offer and find another path. The application deadline is typically 60 days from the disaster declaration date, so do not delay while waiting for your insurance claim to settle.

Step 3 — Get mortgage forbearance if you cannot pay

Your mortgage does not pause automatically after a disaster. Call your servicer now and use the word "forbearance." Most federally-backed loans (FHA, VA, USDA, Fannie Mae, Freddie Mac) have mandatory disaster-forbearance rules that allow you to pause or reduce payments for at least 90 days — often 12 months or more — without a credit penalty during the forbearance period.

Key points:

• Forbearance is not forgiveness — missed payments are typically added to the end of the loan or rolled into a repayment plan. Ask your servicer specifically how your skipped payments will be handled.
• Get the forbearance agreement in writing before you stop paying.
• If your servicer is unresponsive, contact a HUD-approved housing counselor at 800-569-4287 (free) for help advocating with your lender.
• Some states (California, Oregon, Washington) have passed disaster-specific mortgage-relief laws — check with your state housing finance agency.

Step 4 — State and local wildfire relief funds

Several Western states have standing or event-specific wildfire relief funds:

• California: The California Wildfire Fund and CALOES individual assistance programs; also county-level programs (e.g., LA County after the 2025 fires).
• Oregon: Oregon Housing and Community Services disaster housing programs; Oregon Community Foundation wildfire relief.
• Washington: Washington State Department of Commerce disaster housing assistance.
• Colorado: Colorado Division of Homeland Security and Emergency Management individual assistance.

Search "[your state] wildfire assistance [year]" or check your state's emergency management agency website. These programs open and close quickly after a declared disaster, so apply as soon as you confirm eligibility.

Nonprofit sources also matter: the American Red Cross, United Way, local community foundations, and faith-based organizations often distribute cash grants or vouchers within weeks of a fire. Check 211.org for local resources by zip code.

Step 5 — Construction financing for the rebuild gap

If your insurance payout, FEMA grant, and SBA loan together still fall short of the full rebuild cost, a construction loan can bridge the gap. Options include:

• Construction-to-permanent loans: finances the build, then converts to a standard mortgage. You draw funds as construction milestones are reached. Your existing mortgage typically remains; the new loan covers the rebuild cost above the insurance proceeds.
• FHA 203(h) loans: specifically for disaster victims who lost their primary residence, allows up to 100% financing of the replacement home with flexible underwriting.
• FHA 203(k) rehabilitation loans: for homes that need repairs rather than full replacement.
• USDA Section 504 repair grants: for very low-income rural homeowners who cannot repay a loan.

Work with a lender experienced in disaster rebuilds — the draw process, inspections, and coordination with your insurance carrier are more complex than a standard mortgage. A HUD-approved housing counselor can help you evaluate construction financing in the context of your overall debt picture (800-569-4287).

Step 6 — Dispute your insurance settlement if it's short

Many homeowners in recent Western wildfires discovered their policy limits were set on outdated construction costs and fell far short of actual rebuild costs. If your insurer's estimate or payout seems low:

• Request an itemized explanation of how the settlement amount was calculated.
• Invoke the appraisal clause: most homeowners policies allow you to hire an independent appraiser; if the two appraisers disagree, an umpire decides. This process is separate from litigation and often faster.
• File a complaint with your state insurance commissioner if you believe the insurer acted in bad faith or violated state claims-handling deadlines.
• Consult a public adjuster or insurance attorney for claims above $50,000 — many work on contingency.

California's Department of Insurance, Oregon's Division of Financial Regulation, and Washington's Office of the Insurance Commissioner all have disaster-specific consumer assistance lines.

Step 7 — Handling emergency credit card charges from the disaster

Many wildfire survivors charged evacuation hotels, temporary housing deposits, contractor deposits, and emergency supplies to credit cards in the weeks after the fire — sometimes tens of thousands of dollars. If the insurance payout or assistance arrives, paying those cards off is straightforward. But if the gap is large and the cards are carrying high-interest balances with no clear payoff path, you have options:

• Hardship programs: call each card issuer and explain the disaster. Many will temporarily reduce your rate, waive late fees, or defer payments for 90 days. This is not on most websites — you have to ask by phone.
• Debt consolidation: if you have decent credit remaining, a consolidation loan at a lower rate than credit card APRs can make the monthly payment manageable while you rebuild.
• Nonprofit credit counseling: a debt management plan (DMP) through a nonprofit (look for NFCC members at nfcc.org) can reduce interest rates and consolidate payments without a new loan.
• Debt settlement: if you have $7,500 or more in unsecured disaster-related debt and repayment in full is genuinely out of reach, debt settlement — negotiating to resolve accounts for less than the full balance — may be an option. Be aware that settled accounts may result in a credit score impact, and forgiven debt over $600 may be taxable (IRS Form 1099-C). Settlement is not guaranteed, and results vary. The FTC's guidance on debt settlement is at consumer.ftc.gov.

IRS casualty loss deductions

For federally declared disasters, the IRS allows a casualty loss deduction for the portion of your uninsured loss not covered by any assistance. The deduction has been restricted in recent years (currently limited to federally declared disasters and subject to a 10% AGI floor after a $100 reduction), but for large uninsured losses it can meaningfully reduce your federal tax bill in the year of the disaster — or you can elect to apply it to the prior year for faster relief. IRS Publication 547 explains the rules; a tax professional familiar with disaster losses can help you maximize this.

Also: if you received a FEMA grant or other disaster assistance, those amounts are generally not taxable as income. Keep all documentation of what you received and what expenses it covered.

Summary: where to start today

1. Check if your county is in a federal disaster declaration at DisasterAssistance.gov and register with FEMA.
2. Apply for an SBA Home Disaster Loan — even if you are unsure — before the deadline.
3. Call your mortgage servicer and request forbearance in writing.
4. Call each credit card issuer and ask about disaster hardship programs.
5. Contact 211 or a HUD housing counselor (800-569-4287) for local resources and help sorting the options.
6. If insurance is short, request the itemized settlement calculation and consider invoking the appraisal clause.

The financial recovery from a wildfire is a long process. Take the urgent steps — FEMA, SBA, forbearance — in the first weeks, then work through the longer-term rebuild financing and debt management as the picture becomes clearer.