Flood Determination

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  • #2586

    We have a customer that went to Backyard world and purchased a one room cabin that is being used for collateral. This cabin will be taken and put on someone else’s land at KY river. The loan officer did not do a flood determination on the loan saying that the cabin should be treated as a camper. I say that a determination should have been done. Wouldn’t this building be treated as a manufactured home?


    The flood regulations state that a bank shall not make, increase, extend or renew any designated loan unless the building or mobile home and any personal property securing the loan is covered by flood insurance.

    A designated loan means a loan secured by a building or mobile home that is located or to be located in a special flood hazard area in which flood insurance is available under the Act.

    And finally, building means a walled and roofed structure, other than a gas or liquid storage tank, that is principally above ground and affixed to a permanent site and a walled and roofed structure while in the course of construction, alteration or repair.

    If the building is or will be affixed to a permanent site a flood determination should be completed.

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