Important Information on Flood Insurance

Once again, the National Flood Insurance Program will not be reauthorized by Congress by midnight of May 31, 2010. Therefore, the program will experience a hiatus – a period without authority to issue new policies on or after June 1, 2010. As a result, AFR can not close on any loans without a binding flood insurance policy.

Purchases – CANNOT close if the property is located in a flood zone unless the policy is bound and a full year has been paid in full.

Refinances – Property must have an existing flood insurance policy in effect, the policy must be of sufficient amount to provide the required coverage for the new loan amount, and that policy’s expiration date must be no sooner than 45 days from the closing date, and the policy must be paid current.

For a copy of the NIFIP guidance bulletin.