USDA requires a maximum deductible of $1k or 1%, whichever is greater and the pre-FIRM NFIP minimum deductible is $1,500. Has anyone run into a situation where the USDA loan amount is less than $150,000 and it is a pre-FIRM rate? I imagine USDA would be required to accept the NFIP policy but can't find anything firm (no pun intended).

Never mind. Finally dug up the USDA handbook requirement and it addresses my concern. Emphasis added.

"Unless a higher amount is required by state or federal law, the maximum deductible clause for a flood insurance policy should not exceed the greater of $1,000 or 1 percent of the face amount of the policy."