We're in the process of buying a home with a USDA mortage- set to close on April 15, 2010. Everything is trucking along just fine until I get a call from our home insurance agent. Our house is in a class a flood zone, and the federal government has put a moratorium on binding anymore flood insurance because congress has not signed the legislation for funding flood insurance. Because of the USDA fund shortage our lenders will not have available funding after May. Please let the flood insurance come through within 9 weeks!
I beleive that your lender will be the one that advises you if you are in a flood zone and will need flood insurance, not your HO insurance agent. I could be wrong though!
All of our paperwork says Class A flood zone. It's no secret that the house is in a flood zone.
Now we're waiting for Congress to get the $ to FEMA so we can get the flood insurance, and needing everything to complete before USDA runs out of funds. I am beyond aggravaed with this.
Is it a property that you can't get insurance on? I know the property I'm purchasing is in a Class A flood zone, prior owners didn't have insurance on it as they owned the home. It was just a matter of getting flood insurance and as the rates are determined by the government based on zone all the insurers I got quotes from where virtually the same. I plan on getting an eval survey done as the property is built up grade a bit in hopes it will reduce my flood insurance rates.
FEMA is out of funding for flood insurance, since all flood insurance is funded by FEMA, no one can get new flood insurance right now. They're (Realtor, Mortgage Broker and Insurance Agent) reassuring me it's only a temporary set back, that when congress comes back in session on April 12th that they'll be able to start binding insurance policies again. We were supposed to close between April 12th and April 15th. I'm also stressing because if congress drags their feet too long USDA may run out of funds before I can close on my house and then I have to start everything all over again!
Ah gotcha.. man I'm glad I got mine in when I did... Hate to think of one more setback..
Fingers crossed that it works out for you