I have a question about flood insurance as it relates to vacant land. We are looking at financing an IO loan on a vacant piece of land (About 95 acres) which will be developed into residential homes. We are not proposing to do the perm financing.
The engineer and developers have indicated that they will be applying for a LOMA as the process moves along. My question is, at this point in the deals lifecycle, is flood insurance required? As I understand it there are no dwellings on the lot, only part of the lot is in a flood zone, and as the lots are sold to a developer, we will receive a paydown based on the sale of the lot.
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu