We have a new business purpose loan on a small farm where the owners live in a very old mobile home on the property and the flood determination came back and states the property is in a flood zone. There is no/very little value to the pre-1972 mobile home. Is it safe for us to make this a land only loan and exclude the mobile from the mortgage? Is this even insurable?

Is it a titled (probably) mobile home? If so, you can elect not to take title to the mobilehome.

One comment, however...there IS value to the home, particularly since he lives there. Never think you can just decide something has "no value".

I agree. The MH may have a little value, but is has some value.

Thank you for the feedback.