in other words
april3
2014
Living On a Lake in the Country: Loans in a Flood Zone
By Gayle Rich-Boxman
loan.
There are two FHA rehab loans:
There are several federal 203K streamline and the full 203K. The
programs for financing a property in amount of the loan can include up to
a designated flood zone that can open $30,000 in remodeling/renovations.
up opportunities for buyers
who may be purchasing a
home for the first time or are
veterans and want to take
advantage of 100% financing
for their primary home.
This question came
up recently when I had an
agent who wanted to show a
country property of mine, but
the property had flooded--not
the home. It is in a designated
flood zone, but we weren’t
sure at the time if a VA loan would be a If there are any structural changes, the
possibility. It is!
full 203K loan is the only one that can
The programs that are be used. With the full 203K loan, it also
available are VA, FHA and conventional requires an FHA consultant and that
loans. I have gotten the official thumbs will be an extra fee. The interest rate
up on this from my favorite local lender, for an FHA loan is 3 and 1/2% on both
Shawn Baeschlin with NW Mortgage the loan amount and the renovations. A
Group, Inc. USDA, which is available streamline 203K will take 6 weeks to
for first time homebuyers for rural close; the full 203K will take 8 weeks
properties is not available for flood because of the consultant. According to
zones, but in Columbia and Clatsop Shawn Baeschlin, “The FHA program
counties (both of which I serve), USDA has a common perception of being a
loans are available.
first time home buyer program, but can
VA loans up to $417,000 require apply to people who have previously
no down payment. (The rules are owned homes”. He goes on to say,
different for a jumbo loan). There is a “FHA does not finance second homes
funding fee of 2.15% of the loan amount or rental properties. Currently you can
that is paid to the VA to guarantee the get in with as little as 3.50% down, they
loan. That is for the first time, the second allow credit histories that are less than
time the fee is higher. Important notes: if perfect, as well as higher debt ratios than
a veteran is disabled there is no funding generally allowed with conventional
fee. There is also no monthly mortgage financing. Mortgage insurance is a bit
insurance on a VA loan. It is about 1/4% more expensive and is required to be on
lower in interest rate than a conventional the loan until it is paid off”.
Both Vernonia (24 miles away)
and Fishhawk Lake flooded in 2007,
although not all lakefront homes were
affected at that time. Fishhawk Lake is
located in two counties, Columbia and
Clatsop. Only a small area
in Columbia County located
on Fishhawk Creek has had
its zoning changed to be
designated as a flood zone.
There are about 178 homes
located at Fishhawk Lake
and only approximately 62
were flooded.
A current seller who
may have an elevated
property as a result of a
flood (referring to those
located on the Nehalem River or in
9
Vernonia, none are elevated at Fishhawk
Lake), can assign that elevation
certificate to the new owners. Another
piece of information that will save you
money is that the buyer can assume the
flood insurance policy from the seller if
it covers what the buyer wants.
If you have more questions
or want to view properties that are
potentially in a flood zone, let me help
you and I can also guide you in the right
direction for finding that perfect loan
and loan officer!
Call Gayle today! REALTOR® Vernonia
Realty, (503)755-2905
Shawn Baeschlin, Loan officer, NW
Mortgage Group, (503)528-9800
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