Panic has turned to anger.

Homeowners looking to the Federal Emergency Management Agency for assistance to rebuild their homes are learning they won’t get the immediate aid they expected.

And maybe no aid at all.

"It’s a nightmare," said Brick resident Justine Davis. "We have no idea what to do at this point."

"I’m livid. The entire contents of my home is on the front lawn, but we do not qualify," Highlands resident Kathy Self asked. "This is the way we start out? This is the bureaucracy?"

While the federal agency has approved $210 million in financial assistance — mostly in vouchers for hotel rooms — aid for rebuilding homes damaged or destroyed last week isn’t flowing as smoothly.

FEMA won’t award grants for damage to second homes. It won’t duplicate benefits paid by private insurance, so homeowners must settle claims before FEMA will evaluate, said FEMA Administrator Craig Fugate. And most of its recovery aid comes in the form of low-interest disaster loans, he said.

Fugate explained a victim’s need is considered in the awarding of all FEMA assistance, from grants to low-interest loans.

"We work on a hierarchy of need, which is why people next to each other might get different answers," Fugate said, noting FEMA grants to individuals are capped at $31,900.

"If you have insurance, file your claim. That’s the first answer," Fugate said. "If you don’t have insurance or have uninsured losses, the next step is an SBA disaster loan."

Small Business Association loans, not limited to businesses, are determined by the extent of uninsured loss and the applicant’s income and ability to repay, he said.

None of this was explained to Self. After registering with FEMA, an agent came to her house, assessed the damage, and gave her a claim number to check on the next day. She called the FEMA hotline as directed and heard this brief statement: "You do not qualify."

FEMA public information officer Alberto Pillot explained the message she heard applies only to the initial grant program.

"Nobody gets denied," Pillot said. "They are waiting for that insurance claim to come in, that information has to be processed."

Self wonders why the FEMA agent didn’t just say that.

"Why didn’t (FEMA) say pending?," she said. "Why would be totally denied? I’m ready to cry."

Others question the agency’s decision about secondary residences.

"I don’t why that should matter. We pay into just like anybody else does," Ken Fisko said. "It’s government funded, and we all know we fund the government."

Fisko’s yard in Little Egg Harbor Township is littered with docks, pilings, railroad ties and other items that floated in the storm surge. He registered with FEMA, but isn’t optimistic."

"With homeowners insurance, there are so many gray areas," he said. "You feel pretty helpless."

Pillot said most of the confusion about FEMA coverage and assistance results from a misunderstanding of FEMA’s mission.

"FEMA is just temporary assistance," he said. "The disaster loans are meant to get you back where you were."