A customer is looking for financing on a property in a flood zone. It has flooded numerous times and insurance wont touch it. He has built up the land by 3 feet and poured a concrete pad into which he has sunk many concrete and steel pillars that the actual home will be built on top of. The home will also have an elevator that goes from the ground to the house above. The customer would like to know if he could put up a bond instead of dealing with flood insurance. His thought is that the bond would simply pay off the loan if anything flooded. Is this possible? And if so is there anything special we would need to do?

Thanks in advance.

You will have to pursue a private insurance policy if the NFIP will not insure the property but under no circumstance can you make the loan without flood insurance in place if the property is located in a SFHA.

Has the property owner submitted an elevation certificate and other supporting documentation for a possible LOMA?

Thank you for the reply. That is what we were thinking, but we were hoping for a miracle. The customer submitted the information but unfortunately it didn't work out. We will keep working on finding a way to get the insurance.

Thanks