It is important to learn as much as possible about any home that you want to buy before a sale becomes official. This may be especially important if the Mississippi home that you want to acquire is located in a flood zone.
You will likely need flood insurance
If you are looking to finance the home with an FHA, USDA or VA loan, you will likely need to buy flood insurance for a home located in a flood zone. It may be possible to buy a policy either from a private insurer or through the National Flood Insurance Program. You should expect to pay about $700 a year on average if you purchase coverage through the NFIP, and there is no guarantee that such a policy will cover the entire cost to repair your home if a flood occurs.
Water can cause extensive damage
It can take days, weeks or months to repair or rebuild a home that has been damaged in a flood. In some cases, you may have to move out of your house while repairs are made. During an inspection before a home sale, be sure to look for signs of water damage whether it was caused by a previous natural disaster or other problems such as poor drainage. It is worth noting that a seller may not have to disclose whether the house has been impacted by a flood in the past.
Buying a home in a flood zone may come with a variety of risks that you should be aware of before making an offer to purchase it. Ideally, you will have an inspection done and review insurance options as part of the due diligence process. A real estate law attorney may be able to help you navigate the process of buying a home in your area.