What is a flood zone?
The Federal Emergency Management Agency (FEMA) developed and mandates the use of flood maps to determine if a property is in a flood zone. These maps include areas that are within the 100-year flood boundary. (Note: This does not mean the land will flood every 100 years, but rather that there is a 1% greater chance that a flood level will be equal or exceeded in any given year.) The appraiser will make an initial determination of the property flood zone. However, the lender will order a report from a flood determination agency. If a property is in a flood zone, the lender will require the borrower to obtain flood insurance before closing. Return to the top of page.
Related Questions
- can a flood zone certification company examine a lenders existing loan portfolio for free or at a reduced rate, in exchange for the lender sending the company future business?
- To replace a furnace in the basement of an existing building, located in a flood zone, where must the new furnace be located?
- Are there plans to build drainage facilities to remove the flood zone?
