Just a quick heads up to all of you in the Lake Oroville real estate market and beyond to let you know that the Federal Emergency Management Agency (FEMA) has, as of today, implemented newly revised flood area maps that may require some buyers of homes in the greater Oroville area to purchase flood insurance as a condition of their purchase.
As part of the loan process lenders will require that a flood certification be done on the property. If the property is located in a high risk flood area (generally the 100 year flood zone), the lender will require flood insurance as a condition of providing the loan. The relative high cost of this insurance, which is added to the monthly payment of the buyer’s loan payment, can keep a buyer from qualifying for the loan that they need in order to purchase the home of their dreams.
Something important to keep in mind here, for those of you who currently are in the middle of a purchase transaction, is that this map revision is NOT grandfathered in. Meaning that if the home you are purchasing is now in a high risk flood zone you are going to be required to have flood insurance even though the home may not have been in a flood zone when your purchase contract was put into place.
Based on what I can decipher by looking at these maps there are not a whole lot of additional Oroville area properties that are affected by the new maps, but there are enough that some current transaction may be impacted.
You can look at the maps yourself by visiting the FEMA website. You can get to the Oroville maps by CLICKING HERE or on the picture of the map.
- Floods send insurance claims into millions (news.theage.com.au)
- Determining Flood Risk for Insurance (brighthub.com)
- Senators push to delay flood insurance requirement (seattletimes.nwsource.com)