OT: Jersey shore flood insurance, mortgage?

[rigi19041]

Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.

 

[Knight Shift]

Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.

Likely yes.

Call Connelly Campion and Wright in Belmar. They know their stuff here.
Or ask a mortgage broker.
Or ask Grok

The short answer is probably- a bank is giving you a loan on a property that includes a house. They want the entire asset insured.

 

[Jtung230]

If your intent is to tear it down and rebuild, think you can get a construction to perm loan. It will have more flexibility on insurance.

 

[rigi19041]

Likely yes.

Call Connelly Campion and Wright in Belmar. They know their stuff here.
Or ask a mortgage broker.
Or ask Grok

The short answer is probably- a bank is giving you a loan on a property that includes a house. They want the entire asset insured.

I'm thinking the bank simply wants the value of the loan covered. The property would have more equity than the loan. A teardown is unique and the property would probably be worth more if the house washed away.

 

[rigi19041]

If your intent is to tear it down and rebuild, think you can get a construction to perm loan. It will have more flexibility on insurance.

Most buyers would tear it down.

I would slap a coat of paint on it and use it for 20 years and maybe tear it down way down the line.

 

[Jtung230]

Most buyers would tear it down.

I would slap a coat of paint on it and use it for 20 years and maybe tear it down way down the line.

You need to buy flood insurance

 

[RUBubba]

You can get a flood insurance policy based on the proposed drawings of the new home

 

[kupuna133]

Most buyers would tear it down.

I would slap a coat of paint on it and use it for 20 years and maybe tear it down way down the line.

So it was a rhetorical question?

 

[T2Kplus20]

Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.

Can't you just paid the current owner to tear it down and then buy the land with no house?