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Typically policies are only for 1 year, wouldn't they go up next year anyway?
It is a newly mapped zone area and it has to have a flood policy by April 1st 2016 otherwise window closes.
Difference is $518 a year vs $3,000 a year same policy. But rub is flood policies have a 30 day waiting period if no mortgage. So since after March 1st buying cash wont help. I am putting an offer in on Sunday. I need to buy it and close and get a mortgage by March 31st.
I was thinking, pay cash, get title then one minute after closing do a HELOC which requires flood insurance and take out policy.
Flood rates do rise around 3-10 percent a year. But if you start at $518 you are good, start at $3,000 hard to find a buyer even at $3,000 let alone when it is $4,000 to $5,000 when you sell.
Prior owner did not take out the newly mapped policy and missed his window. Now he is selling a house which after April 1st costs $3,000 to insure when identical houses pay $518.
Congress is finally slamming door shut on April 1st on a lot of these low cost policies. This was supposed to happen right after Sandy but houses were near impossible to sell at that time and jacking flood policies was not appropriate. But congress still kept grandfathering on primary homes.
So as long as house is not damaged more than 50% in one shot which means you have to raise and auto lose policy you are good.
Last mortgage we got took about fifteen minutes. My friend wrote us a check and now we pay her the interest. It's done just like a bank mortgage, filed with the Bureau of Conveyances and all that, it's just that instead of writing checks to the bank and giving them the interest, it goes to our friend instead. This is the second mortgage we've gotten through friends and it keeps the interest money helping people we know instead of going off to some sort of financial institution.
When you have private financing, you can also get the inexpensive houses that for some reason a bank won't loan on. At the moment, our current house doesn't have an official address since they never named the street. The house was built in 1951, the street has been there for over sixty years and has never officially got a name. It's in a small town, there's only seven houses on it and it's a cul-de-sac, so I suppose it hasn't been a huge problem. But now, banks are fussy and want things like addresses before they will loan. As soon as we get the street named, house values will triple since folks will be able to get bank mortgages.
Mortgages only take 30 days or longer because buyers usually have an inspection period and appraisals aren't usually ordered until after this period. If you waive inspections and order the appraisal immediately, you can be done fairly quickly. Keep in mind that you need to have all your paperwork in order so they don't have to keep asking for more and more.
In all my property purchases through the years and decades, I've never had appraisals held up until after the inspection period. Coincidentally, I'm in the process of buying a SFH right now; the appraisal took place this past Thursday morning, which was just the 5th business day after the loan application process started and the 9th day after the contract was signed. My inspection contingency period doesn't end until next Tuesday.
As a matter of fact, my loan officer ordered the appraisal on the very same day that I came into his office with my paperwork. He told me that the appraiser would contact the owner within two business days to schedule the appraisal, but it actually occurred on the third day. I was in his office on Thursday, March 3, the appraiser contacted the owner on Tuesday the 8th, and the appraisal took place on Thursday the 10th.
In all my property purchases through the years and decades, I've never had appraisals held up until after the inspection period. Coincidentally, I'm in the process of buying a SFH right now; the appraisal took place this past Thursday morning, which was just the 5th business day after the loan application process started and the 9th day after the contract was signed. My inspection contingency period doesn't end until next Tuesday.
As a matter of fact, my loan officer ordered the appraisal on the very same day that I came into his office with my paperwork. He told me that the appraiser would contact the owner within two business days to schedule the appraisal, but it actually occurred on the third day. I was in his office on Thursday, March 3, the appraiser contacted the owner on Tuesday the 8th, and the appraisal took place on Thursday the 10th.
Typically, loan officers will ask me/my buyers to hold up the appraisal until after the inspection period. What if the inspection reveals a deal breaker? You'll be out the inspection $ and the appraisal $. Might depend on the area of the country and the speed at which appraisers move as well.
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