Flood Zone
A FEMA-designated area at elevated flood risk. Properties in flood zones AE, A, V, etc. require flood insurance, which can significantly impact PITIA and DSCR.
Why it matters on a DSCR loan
A flood-zone designation is one of the most common deal-killers investors don't check until after going under contract — the required flood insurance premium goes straight into PITIA and can push an otherwise healthy DSCR below the qualifying threshold. Always pull the FEMA flood map and get a real flood insurance quote during due diligence, especially in coastal markets where premiums have climbed sharply. Underwriters will not waive the coverage, so the only levers are a bigger down payment, a rate buydown, or renegotiating price.
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).