In episode 280 of The Flood Insurance Guru podcast we take a deeper look at Fannie Mae loans.
Fannie Mae loans have completely different guidelines from other loans.
In the podcast we discuss some of these restrictions like replacement cost and loss of income.
We specifically look at payment options for flood insurance on Fannie Mae loans.
Many times when someone is doing a Fannie Mae loan they might be doing a larger purchase.
Apartment buildings are a common purchase with this loan type.
As you can imagine the loan amount can be pretty high and the replacement cost could be even higher.
Right now we have a customer that is refinancing a Fannie Mae loan in Saint Louis Missouri.
The requirements of Fannie Mae are going to increase their flood insurance premiums by 30%.
As you can see they can have some pretty strict guidelines especially when it comes to payments.
In the podcast we look at flood insurance payment options for a Fannie Mae loan.
We look at what is allowed and what isn't.
Let's take a look at two payments options that are not available.
- Premium finance
- Installment plans
What is a premium finance agreement on flood insurance?
This is something that is very common in the insurance world. This is when a finance company will allow you to finance your insurance premiums. When they do this they set up a payment plan that can have a pretty higher interest rate.
This agreement generally is not through the insurance company. The premium finance company agrees to pay the insurance company in full and you agree to pay the premium finance company.
The other payment that Fannie Mae loans do not allow is installment plans. While installment plans are not common on flood insurance policies they are on other types of insurance.
So when doing a Fannie Mae loan its important to know these things about flood insurance.
If you have further questions about flood insurance then click here.
Remember we have an educational background in flood mitigation. So we are here to help you understand your flood risks, flood insurance, and mitigating your property long term.