I’m looking at a home that is half in a FEMA designated AE flood plane; the other half is in a zone X flood plane. The mortgage lender is requiring that I get a $1562 a year FEMA policy before closing and make that payment every year there after. My question is this, once I’ve payed off the loan am required to keep purchasing the FEMA insurance? If I were to pay for the home with cash would I be required to have flood insurance.
I’m getting the insurance either way, just interested in knowing whether or not its required law.
Also, does being in a flood plane make the house worth less initially? I do realize that it makes it harder sell/resell.