What about when you have a large loan secured by several properties, how does that affect the amount you use for “the amount of the loan”? Right now I have a $322,000 loan secured by 6 duplexes, 4 of which are in special flood hazard areas requiring flood insurance. How much of the loan do I allocate to each of the 4 in the flood zone in this example for purposes of determining the lesser of the loan amount or max available?
In your case were the 6 duplexes appraised separately? Or in the appraisal is there a breakdown of value per duplex that was determined on a cost-value? If so, I’d take the value of the 4 that are in the flood zone and determine the amount of insurance required by that.