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#2256385 - 07/07/21 06:29 PM Flood Insurance Required?
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 3,950
New York City
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.

Thanks,
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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Flood Compliance
#2256390 - 07/07/21 06:51 PM Re: Flood Insurance Required? ACBbank
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,987
Galveston, TX
There is nothing to insure if there are no buildings on the property.
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#2256391 - 07/07/21 06:56 PM Re: Flood Insurance Required? rlcarey
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 3,950
New York City
Thank you Randy.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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