Canadian snowbirds have returned to their homes in Canada for the summer. While they are home in Canada, it is important for them to stay up to date with Sarasota real estate news.
The Homeowner Flood Insurance Affordability Act
The Homeowner Flood Insurance Affordability Act has been signed into law, which is incredible news for property owners and potential buyers. This act helps make flood insurance premiums fair, affordable and predictable for families in Florida and other areas prone to flooding.
This act was added to the Biggert-Waters Flood Insurance Reform Act of 2012, enabling the following changes:
- Repeals FEMA’s authority to raise flood insurance rates at the time of property sale.
- Returns to allowing buyers to assume the seller’s current rates so the rate stays/transfers with the property, not the owner.
- Restores grandfathering so properties built and maintained to code in one flood zone are not rated in a higher cost zone, simply because FEMA corrects the mis-rating on a later flood map.
- Caps premium increases at 18% annually for new properties or 25% for the older ones.
- Refunds premiums paid by property owners in excess of rates under these amendments.
So, what do these changes mean to potential buyers ? In short, it makes buying and owning property more affordable and predictable. Canadian snowbirds in particular may have been hesitant to purchase a home in Florida because of the high rates of flood insurance. They are now protected through this act. This is important because many Canadians will likely head South again in the fall to avoid another brutal winter…
Sarasota Mortgages from RBC Bank:
RBC Bank specializes in mortgage lending for Canadians. Typically it takes about 45 days for most loans to close and Canadian buyers will never pay a foreign national premium with them. Plus, RBC Bank will use Canadian credit history and their RBC Royal Bank history to help secure U.S. financing. They can also provide Canadians with a mortgage pre-qualification.
Canadian home buyers need real estate agents like us who understand both sides of the border and has partners who can provide guidance for the specific issues associated with cross-border buying and selling. We are a call away 1888-755-2637 or 941-993-3160
Patrick Doherty 1801 Main St. Sarasota, FL 34236