Loan request is to build 7 townhouses which are on 7 lots with 7 different addresses but they are all under one connecting roof. If only one of the end lots is in a SFHA, doesn't the flood insurance have to be on the entire structure since there is only one roof? That is what I am telling my lender. The lender then asks the question, if upon completion, each townhouse is sold individually and a flood determination is pulled on the specific address for a lot that is not in the SFHA, would it reflect to be in a SFHA?

These are most likely 7 single buildings. Refer to the Flood Insurance Manual, Page GR -5.

As such, only those in the flood zone need insurance. If not, you have a real problem. How are only individual owners going to be able to insure their individual properties as the 7 unit structure would only be eligible for $500,000 under a general property form unless they turned them into condominiums.