HUD Articles
What is a LOMA-You May Want One
June 08, 2023
Buying a HUD Property Number 5
by Tom Nelson HUD Licensed Listing Broker (LLB)
Leave Me A LOMA
This is just a play on words (leave me alone). But a LOMA is something of great value-especially if you are buying a HUD home with a ‘F’ code.
HUD properties have a number of codes LBP (Lead Based Paint), UI (Uninsurable), IE (insured with Escrow) and F (Flood Plain).
Properties in Flood Plains have a higher risk of becoming flooded in the future than non-flood plain properties. Whether a property is in a flood plain is determined by FEMA (Federal Emergency Management Authority). Properties in a flood plain are required to pay a flood insurance premium that can be costly. Since FEMA is responsible for flood plain maps across the entire Unites States, there are often occasions where the classification of a flood plain is not accurate.
That is where the LOMA comes in. A LOMA stands for Letter Of Map Amendment. A number of properties may not be in a flood plain even thought they are so designated. A person that is listed as being in a flood plain and does not thin the property should be, will need to get a flood plain engineering professional to assess the property. If the property does not meet FEMA standards for a flood plain, documentation so stating and a completed form from FEMA can be reviewed and the property can be changed showing that it is not in a flood plain and thereby eliminating the need for a flood insurance policy.
Copyright Tom Nelson DASAT Properties, LLC 2023
