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Flood compliance for a SBA v. conventional loan

Answered by: 

Question: 
Do the flood regulations differ for SBA or Conventional loans?
Answer: 

For purposes of the federal flood regulations if a loan is secured by a building or a mobile home located in a special flood hazard area within a participating community, a lender cannot make, increase, renew or extend the loan unless flood insurance, in the appropriate amount, is purchased and maintained for the life of the loan, whether the loan is a SBA or a conventional loan. If the loan is not in a participating community the lender may choose to make a conventional loan without flood insurance; however it cannot make a SBA, VA or FHA loan located in a non-participating community.

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Learn more about Jack Holzknecht’s webinar Frequent Flood issues

First published on 11/22/2020

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