Flood Affected Properties
If you are purchasing a home in a flood zone, it may be challenging for you to secure a home loan. However, depending on the flooding history of your property and your current financial situation, the brokers at Mortgage House may be able to help you secure a home loan.
What Criteria Do I Need to Meet?
If you are applying for a home loan for a flood-affected property, your lender may require you and your property to meet certain criteria. These criteria help lower the risk for lenders, and include:
- There must be a house on the property already. If not, you must be allowed to build one.
- The property needs to be insured.
- The height of the floor must be higher than the average flood height.
How Our Lending Specialists Can Help
Most traditional lenders consider flood-affected properties to be high risk. Due to the risk, they may deny your home loan application, or they may require additional documentation. This documentation may include flood records and property valuation reports. At Mortgage House, we may be able to help you secure a home loan for a flood-affected property using the following guidelines:
- If your property is in a flood zone that floods every 100 years, you may be able to borrow 95%.
- If your property is in a flood zone that floods every 40 years, you may be able to borrow 80% if you have a steady income and are in a secure financial situation.
- If your property is in a flood zone that floods every 20 years or more often, it may be harder for you to secure a home loan. However, we may have some loan options for you.
If you are purchasing a flood-affected home, contact the brokers at Mortgage House. We are a non-bank lender, meaning we have fewer lending requirements and offer home loans for higher-risk properties.