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#2238141 - 06/16/20 01:47 PM Construction Loan for Major Renovation
MEB Offline
Member
Joined: Oct 2006
Posts: 51
Kentucky
Property is in a flood zone and currently has a small house and pole barn on it. Borrower has requested a construction loan to complete a major renovation that will add on to the current house and ultimately attach to the pole barn. We have determined that our "lesser of" is the loan amount of $200,000. Borrower has obtained a single policy for $200,000 since there will only be one building on the property when the renovation is completed.

So, I'm trying to verify what we need to have coverage on prior to closing since there are currently 2 buildings on the property. I'm told that the pole barn is used for personal, family, or household purposes. I'm thinking that we use the detached structure exemption for the pole barn and then are ok to close with the one policy for the to-be completed residence. Thoughts?

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Flood Compliance
#2238168 - 06/16/20 05:16 PM Re: Construction Loan for Major Renovation MEB
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,224
Galveston, TX
Agreed
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