Partially in a Flood Zone - Buy?

3 Replies

Generally speaking, I've stayed away from properties that have ANY flood zone boundaries going through them.  With our geography here being in a valley AND with FEMA recently redrawing the maps to be WAY more conservative (MUCH more area designated) I'm finding a lot of decent potential flips that have SOME flood zone designation. 

I've been told: 

1) that if there is ANY flood zone on the property, even if the house is not in it, then mortgage companies require insurance

2) Flood insurance is very expensive (after the first two years of government supplement ends)

3) 1+2= longer hold times and lower ARV

Are this "facts" true?

This advice was passed to me semi-casually and I didn't really care then, because I wasn't interested in any properties that had any destination on it.  But now, I'm having second thoughts. I'd like to know more before I throw away, what seems like, good leads.

Note: I'm not talking about houses having water issues. That's, pretty much, a deal breaker for me as it is because so expensive to remediate.  I'm talking about properties that haven't had any flood or wet basement issues.  It's just that they are now in FEMA's 100-year flood zone map.


Here's an example. Note the property highlighted in bold yellow.

Okay.. I'm guilty for not searching before posting.  <embarrassed>

Looks like my answers might be here:

https://www.biggerpockets.com/forums/95/topics/163316-whats-the-scoop-on-flood-plains

Reading that other thread, #2 and 3 are clarified.  But my primary question is unanswered... so I'll ask it here....

If there is ANY flood zone on the property, even if the house is not in it (like the property highlighted), will the mortgage companies require insurance?

I do know that we were required to obtain flood insurance when a flood cert was required and the back corner of a home (less than 8 sq ft, crawl space with no essential features like heat pump, etc.) was in the flood zone.  It was explained to me at the time (2009) that if the corner of the house was not in it, we would not have required flood insurance for just the land.  The bank actually reduced the price of the home and paid points to cover the additional flood insurance cost, which seemed logical at the time, but now with the new laws we are worried as they are re-drawing the flood maps, so now looking at anything from no longer in one to massive increase in insurance.  I won't be buying another one in a flood zone unless I can pay cash.       

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