We will be doing a land loan for our borrower - the collateral will be the land and assignment of the land leases. There is a building on the property which is owned by another entity and will not be included as collateral - in fact it doesn't belong to our borrower.

Am I correct that we do not have a designated loan for the purposes of flood since our loan is not secured by a building or mobile home?

A little skittish as we have had flood issues in the past and we don't want to revisit that old story.

As long as the building is not securing the loan, then you are not required to maintain flood insurance. Flood insurance only applies to a "designated loan," which is a "loan secured by a building or mobile home that is located or to be located in a special flood hazard area in which flood insurance is available under the Act." See 12 CFR 22.2(e), 208.25(b)(4) or 339.2(e). A bank may still impose flood insurance as a loan requirement, but the flood laws & regulations do not require it.