Partially in a Flood Zone - Buy?
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.