Do lenders required flood insurance for medium-large MF property?

[Michael Dang]

Hi All,

Do lenders require flood insurance for medium to large multifamily apartment properties NOT in a 100 or 500 year flood plain?

My definition of medium is > 60 units.  If the market is also a consideration specifically in the major Texas cities of San Antonio, Austin, Houston, and Dallas\Ft. Worth.

What about Freddie Mac or Fannie Mae backed loans?  General question i know and there are other factors to be considered, but wanted a general rule of thumb or the industry norm.

[Jason Bott]

@Michael Dang & @Salvatore Lentini  On $1M+ financing, I have never had a client need to add flood insurance to a deal unless it was in a flood zone.

The scope of coverage the lenders send to us for these deals will state that flood insurance (and many other geographical risks, like earthquake) are only needed if the property falls with in designated flood zones.