need flood insurance to get Refi...anyone else?

Loony Singer · 01-24-2012, 08:53 PM

Hi all...

I've recently applied to refinance (for the 4th time) our home on Moultonboro Neck. But this time the lender has sent us a document stating that "the building...securing the loan for which you have applied is...in an area prone to flood risks that we call a special flood hazard area (SFHA). The area has been identified by FEMA as a SFHA using the Flood Insurance Rate Map (FIRM) or the Flood Hazard Boundary Map (FHBM) for the community number 330015...."

There's more, but here's my question: why is this a concern to this particular lender at this time, when our previous financings have never mentioned it as an issue? And why do they consider a flood even remotely possible, when our foundation sits perhaps 20 feet above normal lake level? Finally, what can I do to straighten this out?

I'd appreciate any insight from other forum readers who have experience with this situation.

Thanks!

Lakegeezer · 01-25-2012, 07:36 AM

Check the maps to see if you are indeed in a flood zone. The effective zone maps can be found at the FEMA site https://msc.fema.gov/webapp/wcs/stor...ategoryDisplay

There is a link to future zones, which qualify as 1% risk. There was some talk about additional zones being defined for Moultonborough, but I haven't seen them come through yet, and the FEMA site shows nothing in our area.

Start your fight with the mortgage company by showing them the FEMA maps, marking you house location on it. If it is indeed in a flood zone, your fight will be more difficult, but someone might listen to reason.

I'm on the neck too, and at risk of flooding if we exceed the (so called) 500 year flood of 1998. Yet, I'm not in a mapped flood zone - yet. Go figure.

XJLPS · 01-25-2012, 07:56 AM

Quote:

Originally Posted by Loony Singer

Hi all...

I've recently applied to refinance (for the 4th time) our home on Moultonboro Neck. But this time the lender has sent us a document stating that "the building...securing the loan for which you have applied is...in an area prone to flood risks that we call a special flood hazard area (SFHA). The area has been identified by FEMA as a SFHA using the Flood Insurance Rate Map (FIRM) or the Flood Hazard Boundary Map (FHBM) for the community number 330015...."

There's more, but here's my question: why is this a concern to this particular lender at this time, when our previous financings have never mentioned it as an issue? And why do they consider a flood even remotely possible, when our foundation sits perhaps 20 feet above normal lake level? Finally, what can I do to straighten this out?

I'd appreciate any insight from other forum readers who have experience with this situation.

Thanks!

I had to carry flood insur. for about 6 years on a FHA loan . My house sits about 40 feet above high water and still was required @ the cost of $600. a year . I called FEMA they told me I was in a flood plain . 6 years later Fema removed most of the town from the flood plain . What a scam . Try a different finance co.

AC2717 · 01-25-2012, 08:30 AM

GOod link Lakegeezer

One thing to note is 1 or maybe 2 years ago, FEMA had the flood zones across the country redrawn. These were done by outside agencies that were hired. Most not from the areas they were working in, also they used new equations.

One thing to note, you can file for an appeal, but that will hoold up the refiance. One way to do it is to purchase it, appeal with the Gov't and if win get rid of the coverage. It has happened to a lot of my insurance clients. In MA, come on when is the last time there was flooding in Belmont or Lexington

Belmont Resident · 01-25-2012, 03:48 PM

We had the same problem and ended up rolling the mortgage into an equity loan.
Of course ours was less than 40K for our camp in Maine.
Unfortunately they can do whatever they want to, they are in the driver’s seat.
As mentioned above you might have better luck looking at a different lending institution.

Two dobys · 01-25-2012, 06:22 PM

A few years ago I was told I needed flood insurance, this property is high enough where in the past 50 years flood levels never have come near the foundation. I had to have a surveyer come here and get the elevation of the basement to the lake elevation, and projected height of a flood. Sent the info to bank and flood insurance was dropped. Good luck anf hang in there.

Loony Singer · 01-28-2012, 06:03 PM

Everybody,

Thanks for the useful infomation and suggestions! However, just when I was girding for battle, the lender seems to have backed off on the requirement that I carry flood insurance. So I guess I'm good for now...ruling out some further indecision on the part of the lender.

01-24-2012, 08:53 PM	#1
Loony Singer Senior Member Join Date: Apr 2004 Location: Moultonborough Posts: 109 Thanks: 28 Thanked 16 Times in 11 Posts	need flood insurance to get Refi...anyone else? Hi all... I've recently applied to refinance (for the 4th time) our home on Moultonboro Neck. But this time the lender has sent us a document stating that "the building...securing the loan for which you have applied is...in an area prone to flood risks that we call a special flood hazard area (SFHA). The area has been identified by FEMA as a SFHA using the Flood Insurance Rate Map (FIRM) or the Flood Hazard Boundary Map (FHBM) for the community number 330015...." There's more, but here's my question: why is this a concern to this particular lender at this time, when our previous financings have never mentioned it as an issue? And why do they consider a flood even remotely possible, when our foundation sits perhaps 20 feet above normal lake level? Finally, what can I do to straighten this out? I'd appreciate any insight from other forum readers who have experience with this situation. Thanks!

01-25-2012, 07:36 AM	#2
Lakegeezer Senior Member Join Date: Feb 2003 Location: Moultonboro, NH Posts: 1,657 Blog Entries: 1 Thanks: 342 Thanked 618 Times in 278 Posts	FEMA defines flood zones Check the maps to see if you are indeed in a flood zone. The effective zone maps can be found at the FEMA site https://msc.fema.gov/webapp/wcs/stor...ategoryDisplay There is a link to future zones, which qualify as 1% risk. There was some talk about additional zones being defined for Moultonborough, but I haven't seen them come through yet, and the FEMA site shows nothing in our area. Start your fight with the mortgage company by showing them the FEMA maps, marking you house location on it. If it is indeed in a flood zone, your fight will be more difficult, but someone might listen to reason. I'm on the neck too, and at risk of flooding if we exceed the (so called) 500 year flood of 1998. Yet, I'm not in a mapped flood zone - yet. Go figure. __________________ -lg

01-25-2012, 08:30 AM	#4
AC2717 Senior Member Join Date: Apr 2007 Location: Maynard, MA & Paugus Bay Posts: 2,522 Thanks: 747 Thanked 344 Times in 257 Posts	GOod link Lakegeezer One thing to note is 1 or maybe 2 years ago, FEMA had the flood zones across the country redrawn. These were done by outside agencies that were hired. Most not from the areas they were working in, also they used new equations. One thing to note, you can file for an appeal, but that will hoold up the refiance. One way to do it is to purchase it, appeal with the Gov't and if win get rid of the coverage. It has happened to a lot of my insurance clients. In MA, come on when is the last time there was flooding in Belmont or Lexington __________________ Capt. of the "No Worries"

01-25-2012, 03:48 PM	#5
Belmont Resident Senior Member Join Date: Apr 2004 Location: Belmont NH but prefer Jackman Maine Posts: 1,857 Thanks: 491 Thanked 409 Times in 251 Posts	Good luck We had the same problem and ended up rolling the mortgage into an equity loan. Of course ours was less than 40K for our camp in Maine. Unfortunately they can do whatever they want to, they are in the driver’s seat. As mentioned above you might have better luck looking at a different lending institution. __________________ "better to have a short life that is full of what you like doing, then a long life spent in a miserable way.."

01-25-2012, 06:22 PM	#6
Two dobys Member Join Date: Nov 2008 Posts: 22 Thanks: 53 Thanked 4 Times in 4 Posts	Flood Insurance A few years ago I was told I needed flood insurance, this property is high enough where in the past 50 years flood levels never have come near the foundation. I had to have a surveyer come here and get the elevation of the basement to the lake elevation, and projected height of a flood. Sent the info to bank and flood insurance was dropped. Good luck anf hang in there.

01-28-2012, 06:03 PM	#7
Loony Singer Senior Member Join Date: Apr 2004 Location: Moultonborough Posts: 109 Thanks: 28 Thanked 16 Times in 11 Posts	thanks, all! Everybody, Thanks for the useful infomation and suggestions! However, just when I was girding for battle, the lender seems to have backed off on the requirement that I carry flood insurance. So I guess I'm good for now...ruling out some further indecision on the part of the lender.