Flood Insurance Guru Video Blog: Fannie Mae and Flood Insurance Payments

In this video we are looking at Fannie Mae and its restrictions.

No matter what type of loan you are doing on a property there are going to be restrictions when it comes to flood insurance.

Some loans will have guidelines on what flood insurance can be accepted, some will restrict options, and some will set their own guidelines for payment.

Fannie Mae is a beast of its own.

If you have a property that is in a special flood hazard area then you want to pay close attention to the requirements.

First of all what is a special flood hazard area?

This is going to properties that fall within the 100 year flood zone. Don't let the phrase catch you off guard these areas can still flood on a regular basis.

It's one of the reasons why some requirements are so strict.

In this video we take a deeper look at payment restrictions when it comes to flood insurance and payment options.

So imagine this you are getting ready to close on a new apartment complex and you are about 7 days from closing.

Then the mortgage company tells you that you can't finance your flood insurance premiums.

What exactly are financed premiums?

In the insurance world this is common practice with higher premiums. Insureds have to finance their insurance premiums to make them affordable.

So instead of having a $40,000 flood insurance premium you might may $4000 a month.

However Fannie Mae loans do not allow flood insurance premiums to be financed.

In this video we also discuss how Fannie Mae loans do not allow for flood insurance premiums to be paid in installments either.

So if you have further questions about flood insurance and Fannie Mae loans then click here.

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Remember we have an educational background in flood mitigation. These means we are here to help you understand your flood risks, flood insurance and mitigating your property long term.