How do flood and wind insurance factor into my Keys mortgage?
Short Answer
Flood and wind insurance are critical factors in Keys mortgage qualification. Lenders require flood insurance for properties in Special Flood Hazard Areas and windstorm coverage in high-risk zones. These policies can add significantly to your monthly payment, and lenders factor them into your debt-to-income ratio. Getting insurance quotes before applying for a mortgage is strongly recommended.
Steve's Advice
Steve Conley
Principal, Conley Sales Group at COMPASS
I always tell my buyers to get insurance quotes before they fall in love with a property. A $600,000 home in Zone VE with a low elevation could carry $12,000+ a year in combined flood and wind insurance, and that extra $1,000 a month directly affects what a lender will approve. I have had buyers who qualified for the mortgage but not the insurance costs. Run the numbers early.
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