land purchase?

Mrs and I are setting up to purchase a lot on a channel to a lake. everything all set with lender and then get a letter from them five days before closing saying need to buy flood insurance to get loan. The lot has nothing on it other than trees and land. don’t see what would need to insure and the spot to build is a ways away on top of a big hill don’t see how it could possibly flood. anyone ever have a similar experience? only buying land not building at the moment.

buy it then drop it. How long are the loan terms ?

5 years hope to pay off in 2-3 form received in mail says if we don’t pay it they will purchase a policy and charge us for it.

Try a different lender.

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Try a different lender.

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Although that seems nice I’m sure they are far enough down the road with them that it’s worth a few questions. If you havent already, just call your contact and find out what’s up. Sometimes it’s just a blowhard move by corporate and can be worked around in a variety of ways.

How much is the flood insurance? Given it’s just bare land and you’re only going to finance it for 5 years or less, you might be better off to just play along.

Certainly worth calling and pushing back on it to see if you can get them to drop the requirement. But given it’s just bare land you’ll have to decided if it’s worth scuttling the deal over.

Grouse

Talk to the lender and you should be able to reason it away. I know that many flood maps have been redrawn recently, and they don’t always make a lot of sense. Our cabin in NW Wisconsin was in that situation and they wanted over $800 annually for insurance. I had to go through some hoops but once they realized the cabin sits 80 steps up a steep hillside they removed the requirement. Common sense isn’t a government strongpoint.

thanks for the feedback they’re now saying don’t have to sign it just informing us may or may not need it when building down the road. seemed like a scheister move paperwork said wouldn’t do loan without it and had a third party setup to offer the insurance. wondering if they get a kick back from the third party flood insurance company. couple days before closing added more stress than needed.

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thanks for the feedback they’re now saying don’t have to sign it just informing us may or may not need it when building down the road. seemed like a scheister move paperwork said wouldn’t do loan without it and had a third party setup to offer the insurance. wondering if they get a kick back from the third party flood insurance company. couple days before closing added more stress than needed.

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HMMM<< Looks like the ol’ walleyebuster was dead on once again!