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This is a house built in 1996 in a flood zone. The area in which I live has a base elevation level of 9 foot for insurance and the second floor is at 11 foot. The bottom floor is a basement and a room and bathroom…I know you are not suppose to have living space below base elevation, but this house is grandfathered in when it comes to flood insurance. So I guess my question is, can you get a RD loan in a flood zone with just flood insurance? If it helps I’m in Texas. I would prefer someone who has real experiance with this.I’ve read most the websites. Thanks!!

2 Thoughts on Can I get a Rural Development loan in a flood zone? Does someone have experiance with this?
  1. Reply
    July 9, 2011 at 7:38 pm

    This question would best be answered by your mortgage lender. Tell your mortgage loan officer the type mortgage program you would want to qualify for. This could Rural Development loan,FHA , VA or conventional mortgage loan.

    Once you have applied for your mortgage loan application in addition to obtaining a credit report the appraiser would be be required to determine if your potential purchase is in a flood zone and issue a flood certificate. The appraiser would have a map of all the current flood zones in the local area.

    If the property is located in a flood zone you would be require to obtain flood insurance. Flood insurance is a federal government sponsored insurance. Your lender would be able to direct you to the proper method in obtaining this insurance.

    The grandfathering in would have to be proven by you with documentation to that effect.

    The procedure of applying for a mortgage loan is the same process, as to obtaining fire (Hazard) and flood insurance. You must make an application through a government authorized mortgage company that does Rural Development loans.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  2. Reply
    Beverly S
    July 9, 2011 at 7:39 pm

    Yes, but only with flood insurance.

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