We pulled a flood cert on a parcel consists on 600 acres. A house and mobile home are sitting on the property. The cert came saying it is in a SFHA. Is there any exception to flood insurance requirement on this kind of property?

It is a ranch loan.

Thank you!

No. If there are structures on the property (2 walls and a roof) and any structure is within an SFHA then flood requirements apply.

Since it's so many acres, you need to confirm whether the structures themselves are in the flood zone, as Skittles is referencing. It could be that only a tiny portion of the 600 acres is actually in the flood plain, but that's all it takes to get the positive hit on your flood determination. You might want to engage your flood determination company to pinpoint the structures for you.

Thank you guys for your quick responses. I am going to ask my flood company to verify that information.

AZ has a great idea. When we obtain a flood determination in an SFHA, our flood vendor provides a copy of the map for verification of the location of the structures. It does help!

I'm going to assume a LO is trying to justify that because you have 600 acres, you don't need flood insurance on the dwelling. That "logic" is thinking about the lender's exposure. Flood Insurance mandates lender's require flood insurance to protect the government, not the lender. IOW, we make people pay in to the system (NFIP) whenever they have a building located in a SFHA. Abundance of caution doesn't matter.

Another item to consider - if the mobile home isn't permanently affixed, it isn't eligible under the NFIP.

If the financial institution has a security interest in the MH it not being "permanently" affixed does not relieve the financial institution of its responsibility to require flood insurance.

And if it is in a flood zone, then it is illegally located by not being affixed, as in order for the community to participate in the NFIP, their ordinances would prevent un-affixed mobile homes in a flood zone.