Flood Zone Impact on Financing

Does anyone have any experience financing a MHP that is in the floodplain? I’m helping a business partner sell a ~100 lot MHP in Tuscaloosa, AL and we’ve had good interest not only because it cash flowing well relative to the price but also because the recent tornado destroyed about 5000 buildings (much of which was affordable housing) so affordable housing demand is now much greater than supply in that market.

However, I had an experienced investor make an offer (contingent on financing) but because the site is partially in the 100-year floodplain, the buyer’s bank (the only one he does business with) wouldn’t make the loan and the deal fell through.

Does the floodplain make it impossible to get the deal financed or did his lender just not want to work to make the deal happen? What if we brought the land up out of the floodplain? Would appreciate anyone who has experience or knowledge.


Brandon Clark