Properties Subject to Flooding

Special Flood Hazard Areas (SFHAs) are those areas in 100-year floodplains delineated on Federal Emergency Management Agency (FEMA) flood maps.  SFHAs are usually designated Zones A, AO, AH, AE, A99, VO, VE, or V.  Older maps use numbered A and V Zones (for example, A2, V30).

The appraiser must

·   check FEMA flood map(s) for the area in which the property is located

·   notify VA and the lender if it appears that the property may not be eligible for VA appraisal because

-   it is proposed or new construction and there is an indication that the elevation of the lowest floor below the base flood level (100 year flood level).  See 24 CFR 200.926d(c)(4), or

-   there is an indication that it is subject to regular flooding, for whatever reason.  Regular flooding would cause the property to not meet VA Minimum Property Requirements whether or not it is located in a SFHA.

·   If the property is eligible for appraisal and located on a flood map

-   identify the map number and flood zone on the appraisal report, whether or not the property is located in a SFHA.

-   If any part of the dwelling is in a SFHA, provide appropriate information in the “Site” section of the appraisal report.

-   If a “master” appraisal, provide a list of the lots located in a SFHA.

Flood insurance is not required in Zones B, C, X, and D.

Also see “Properties in Coastal Barrier Areas” below.

[24 CFR 200.926d(c)(4)]

Properties in Coastal Barrier Areas

Properties located in a Coastal Barrier Resources System (CBRS) area, as delineated on a CBRS map, are not eligible as security for a VA-guaranteed loan.  Affected areas include portions of the Great Lakes, Gulf coast, Puerto Rico, Virgin Islands, and the Atlantic coast.

Appraisers who work in CBRS areas must obtain the appropriate maps from the U.S. Geological Survey.  Prohibited areas on the maps are those inside the solid heavy black lines.