Why Loans Aren’t Funding in Flood Hazard Areas!
The National Flood Insurance Program has expired and it was not extended prior to Congress taking its spring break. The absence of this Program may make it difficult if not impossible to secure flood insurance on property located in flood hazard areas. Most institutional lenders will not fund a loan secured by real property in a flood hazard zone without that insurance in place.
It is unknown how quickly Congress will move to reinstate this federal program when they return to Washington on April 12th. As such, we are facing a minimum of a 2 week gap in the availability of this important federal program.
Buyer Tip: check to see in there is any effect on the funding of your loan with your lender prior to removing the financing contingency. Otherwise you may up a creek without a paddle or a boat.
