Can we close a loan with a flood binder or are we required to have a flood policy? The premium was paid prior to closing and the binder went into effect 12:01 a.m. the day of the closing.

Michael,

Examiners generally accept the binder with a clear indication that the full premium has been paid.

One thing to be aware of though is the the NFIP does not support the issuing of binders. It would have to be through a private insurance company.

From the Flood Insurance Manual - definitions:

Binder. A temporary agreement between company, producer, and insured that the policy is in effect. Binders are not permitted under the NFIP.