Potential homeowners seeking to buy in high flood-risk areas of the country could be forced to proceed to their closings without flood insurance.
An analysis from the National Association of Realtors (NAR) indicates that Congress’s failure to meet the Sept. 30 deadline to pass the national budget could adversely affect a measure that included an extension to the National Flood Insurance Program (NFIP).
“Under normal conditions, lenders will require flood insurance before finalizing the loan if the property is in a Special Flood Hazard Area (SFHA), and the standard homeowner’s insurance policy does not cover flooding,” NAR senior economist and director of real estate research Nadia Evangelou stated in the NAR analysis….