Great news for home owners purchsing homes in flood areas:  Congress passes and the President signs the Home Owner’s Flood Insurance Affordability Act…

The key pieces of this legislation include:

  • Cap for annual rate increases
  • Eliminates the property sales trigger – Repeals the provision in Biggert-Waters that required home buyers to pay the full-risk rate for pre-FIRM properties at the time of purchase.
  • Eliminates the new policy sales trigger – Repeals the provision in Biggert-Waters that required pre-FIRM property owners to pay the full-risk rate if they voluntarily purchase a new policy.
  • Brings back grandfathering –  Had grandfathering been terminated, property owners whose homes were now considered in a higher risk zone would have to either elevate their structure or have higher rates phased in over 5 years. The Home Owner’s Flood Insurance Affordability Act allows grandfathering to continue and sets limits on how high premiums can increase annually.
  • FEMA is now required to refund policyholders for overpaid premiums.

Call me with any questions!

Related Articles

After years of rising rent prices and an inability to make your home truly yours, you’ve had enough and are ready to officially break up with your landlord. You’re ready to become a homeowner. Before you begin, let’s dispel some of the pervasive myths that may be holding you back…
Read More of the post 3 Myths About Transitioning from Renter to Homeowner

For many, buying a home is a major transition in life. It’s one that comes with a long list of benefits like building long-term equity, the freedom to personalize your living space, and possible tax deductions. That said, making the transition from renter to owner isn’t something to be taken…
Read More of the post Is Buying a Home the Next Step for You? (to Buy or Not to Buy)

Chapman Lending Team at HomeBridge Financial The Federal Housing Finance Agency announced Tuesday that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to more than $510,000. In most of the U.S., the 2020 maximum conforming loan limit will be raised to $510,400, up from 2019’s level to $484,350. The San Diego limit is…
Read More of the post Fannie Mae, Freddie Mac loan limit increases to $510,400

Are you on the hunt for your first home? Rethink what you’ve been told and take a look at these commonly thought of mortgage myths. MYTH: “My credit score isn’t good enough to buy on my own.” REALITY: Credit is the five-letter word most people don’t like to talk about,…
Read More of the post Mortgage Mythbusting: First-Time Homebuyer Edition