We know living in Hampton Roads has many perks — especially being near the water. (Did you see Realtor.com named Virginia Beach a top city to live comfortably?)
But with a high quality of life comes rising sea levels, and for some homebuyers that means the need for flood insurance.
During the loan application, lenders pull a flood certification to determine if the property is listed in a flood zone. If it is, the borrower is required to have flood insurance on the property.
Most flood insurances are obtained from FEMA (Federal Emergency Management Agency) and the National Flood Insurance Program (NFIP).
Finally, flood insurance may also impact a client’s debt-to-income ratio (what’s that?) ratio and how much he/she can qualify to receive.
Photo courtesy of Johndal (Flickr)