The Quick Read: Start the LOMA before you close, because the letter only helps your coverage ratio if it is in hand when the lender runs the numbers. An LOMA is a letter from FEMA saying a specific property sits above the mapped flood boundary. It can remove the flood insurance premium from your payment, but your lender still decides whether to drop the requirement.
- A LOMA works only on naturally high ground. Fill dirt requires a different, fee-based letter.
- The flood premium sits in the DSCR denominator, so removing it raises coverage.
- The standard FEMA review can take up to 60 days, so match it to your contract window.
- A LOMA ends the federal trigger. Lender policy can still require coverage.
- Always run the deal with the flood premium included as a fallback.
A flood zone label on a rental can look like a dealbreaker. Often it is a mapping artifact. Flood maps are drawn at a broad scale, and a single house on a small rise can land inside a high-risk zone it does not belong in. An LOMA corrects that on paper. On a DSCR purchase, the correction can change whether the deal clears a program’s coverage floor.
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This walkthrough covers what an LOMA is, how underwriting treats one, the variations, the edge cases, and how to decide. For the broader picture of how these loans work, see Lendmire’s complete DSCR loans guide.
Key Terms Defined
LOMA (Letter of Map Amendment): A letter from FEMA stating that a property or structure is not in the Special Flood Hazard Area.
SFHA (Special Flood Hazard Area): The mapped high-risk flood zone, shown as A, AE, V, VE and similar zones.
BFE (Base Flood Elevation): The height floodwater is expected to reach in a flood the maps treat as the standard risk.
LAG (Lowest Adjacent Grade): The lowest ground touching the structure.
LOMR-F (Letter of Map Revision based on Fill): The letter used when fill dirt, not natural ground, lifted the property.
Elevation Certificate: A survey document, signed by a licensed surveyor or engineer, that records the property’s elevations.
DSCR (debt service coverage ratio): Monthly rent divided by the full monthly payment of principal, interest, taxes, insurance, and association dues (PITIA).
What a LOMA Does, and What It Does Not
An LOMA amends the flood map for one property. FEMA says it removes the federal flood insurance requirement for that property. FEMA charges no review fee for a LOMA.
Two limits matter for you. First, the federal requirement applies to regulated lenders and federally backed loans. DSCR loans are non-agency, so the federal rule is not what usually drives the answer. The lender’s own guidelines are. Second, an LOMA changes the map, not the weather. Properties outside mapped zones can flood too, so some investors keep coverage anyway.
Across the wholesale network Lendmire places files with, flood policy is a lender-level and investor-level decision. Most programs treat an issued LOMA as strong support for dropping the requirement. None should be assumed to do so automatically.
How Underwriting Treats a LOMA, Step by Step
Step 1: The flood determination. The lender orders a flood determination during underwriting. If the property is mapped in an SFHA, the flood question opens.
Step 2: The premium enters the payment. When coverage is required, the premium counts in the insurance line of PITIA. DSCR compares rent to PITIA only, so a higher insurance line lowers the ratio.
Step 3: The LOMA is tested against the file. If an issued LOMA is in the file, the lender can evaluate whether to waive the requirement. If it is not issued yet, most files are underwritten with the premium in the payment.
Step 4: The ratio is recalculated. Removing the premium raises coverage dollar for dollar on the payment side. A deal sitting just under 1.00 can move above it. Many select programs start at 1.00. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
Step 5: The usual program tests still apply. An LOMA does not change leverage caps, credit floors, or reserves. On a purchase, most files land at 75%-80% LTV, and credit tiers typically run from 620 to 700. Reserves are commonly around 6 months of PITIA, about 9 months above $1,500,000. Loans go up to $3,000,000 on standard programs. All of it is subject to lender guidelines.
One caution: clearing 1.00 is not the same as positive cash flow. DSCR leaves out repairs, vacancy, management, utilities, and capital expenses.
A Before-and-After Picture
Picture a duplex in a mapped AE zone. With the flood premium in the payment, rent covers the obligation at about 0.97x. That is just under 1.00. Remove the premium after an issued LOMA and coverage lands near 1.05x. The rent did not change and the property did not change. One line in the denominator did.
Those ratios are modeled assumptions, not market data. The point is the direction. A flood premium can be the difference between a file that clears a program’s floor and one that needs adjusted terms.
Does Your Property Qualify?
The test is elevation. FEMA’s LOMA process page says the lowest adjacent grade of a structure must be at or above the base flood elevation. For a lot, the lowest point on the lot must clear it.
Run a quick screen before you make an offer:
- Is the house on natural high ground, or was the lot built up with fill?
- Does the property already show as outside the SFHA on the map data? FEMA calls that “out as shown,” and it needs no elevation data.
- Is there a basement or lowest floor below the base flood elevation? FEMA’s test uses adjacent grade, but a low floor can still affect insurance rating.
- Does a LOMA already exist for the parcel? Ask the seller and the surveyor to check.
Condos need extra paperwork, such as the condominium declaration. People who own, rent, or lease a property may submit a request. It does not address buyers who are only under contract, so ask your surveyor or title company how it is handled locally.
LOMA vs. LOMR-F: Natural Ground or Fill
| Letter | Used when | Cost at FEMA | Extra test |
|---|---|---|---|
| LOMA | Natural high ground | No review fee | None |
| Out as shown | Map data already shows property outside | No review fee | None; no elevation data needed |
| LOMR-F | Fill raised the ground | Review fee applies | Community finds land reasonably safe |
If fill created your elevation, an LOMA is the wrong tool. An LOMR-F adds a fee and a local finding, which makes it slower and less certain on a purchase clock. Fill-based amendments are not available in coastal high-hazard areas, so verify with FEMA before relying on that route.
The Purchase Timeline: Who Does What
The order of operations decides whether an LOMA helps or just adds stress.
1. Before you offer: Screen the parcel for elevation, fill, and an existing letter.
2. At contract: Add time. Write an extension or contingency tied to the LOMA, and ask whether the seller will give the surveyor access.
3. Hire a licensed surveyor or engineer: FEMA requires elevation information certified by one of them, usually through an Elevation Certificate. The surveyor is the main cost, and no reliable price benchmark exists, so get a quote.
4. File the request: The forms are MT-EZ for an LOMA and MT-1 for an LOMR-F. The application also needs the legal description, such as lot and block from the deed or plat.
5. Wait for FEMA: Paper or online filings can take up to 60 days, and FEMA’s eLOMA fact sheet says the same. A state agency FAQ from Alabama ADECA gives 60 days from receipt of all required data for an LOMA or LOMR-F. One insurance-education site estimates three to four months end to end, from hiring the surveyor to the letter.
6. Send the letter to the lender: Submit it in writing and ask the lender to drop the requirement. Your loan officer or broker can route it to underwriting.
There is a faster path. FEMA’s eLOMA tool is open only to licensed and certified professionals and carries no FEMA fee. It can return a determination within minutes, though a selected audit adds a step. Ask your surveyor whether they can use it.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
If the LOMA Is Not Ready by Closing
This is where deals get tense. If the letter is pending, the lender will usually underwrite with flood coverage in the payment. You can bind a policy at closing and cancel after the letter issues, if the lender releases the requirement. Check the refund terms with your insurance agent.
The honest read: a pending LOMA is a plan, not an input. Build the deal so it still works with the premium included. If it only works without the premium, you are betting on a federal timeline and a lender decision.
Choose an LLC title carefully too. If you vest the property in an LLC, subject to lender program eligibility, make sure the determination and the lender file reference the same parcel and legal description.
When the Lender Still Wants Flood Insurance
An LOMA ends the federal trigger. It does not bind a private lender. A survey showing Zone X does not override the lender’s flood determination, and an Elevation Certificate alone does not waive the requirement.
Your options, in order:
- Ask the lender to review the issued LOMA in writing.
- If the lender wants the whole parcel out, not just the structure, ask the surveyor whether a LOMR-F is realistic.
- Keep a lower-cost policy at the improved rating. An Elevation Certificate can lower a premium even when the property stays in the zone.
- Compare lenders. Across the network, flood overlays differ. The strictest want coverage in any mapped zone. Others weigh an issued LOMA heavily.
Where the General Rule Breaks
- Floodways and V zones: FEMA generally does not issue LOMAs for structures in floodways, and will not reclassify a V zone to an A zone, per secondary explainers. Verify before assuming.
- Local rules survive: A property removed from the floodplain can still fall under the local floodplain ordinance.
- Map updates: A new study can change the base flood elevation or boundaries.
- Denial: If elevation does not clear the BFE, the designation stands. Submitting is not approval.
- Non-participating communities: The federal purchase requirement does not apply where federal flood insurance is unavailable. Lender policy may still limit lending there.
- Ineligible property types: Manufactured homes, log homes, and barndominiums are not offered through these programs, LOMA or not.
The Investor Decision in Practice
Three questions settle most files.
Does the deal work with flood insurance in? If yes, the LOMA is a bonus. If no, the deal depends on timing and lender discretion.
Does the contract window cover the LOMA? Review timelines vary by file and by agency, so there is no fixed turnaround to plan around. A contract with a tight closing date and a pending letter is risky.
Do you want coverage anyway? Reasonable investors differ. The map is not the water. Also consider resale: a flood zone can shrink the buyer pool, which matters at exit.
Premiums vary widely by property and carrier, so get a real quote before you pencil the numbers. A good file shows enough equity and enough rental coverage at once. Your down payment can lower the payment and lift the ratio, but it never erases leverage caps, credit floors, or reserve rules.
If you are buying a rental and want to see how the numbers work with and without flood coverage, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. For an adjacent tool, see Lendmire’s piece How to Use Seller Credits on a DSCR Rental Loan Purchase, which can offset closing costs on a deal like this.
Frequently Asked Questions
Can I get an LOMA after I am already under contract?
Probably, but confirm standing first. People who own, rent, or lease a property may submit a request, and it does not address buyers who are only under contract. Your surveyor or title company can tell you how it is handled locally. Build extra time into the contract.
Does an LOMA automatically remove flood insurance on a DSCR loan?
No. It removes the federal trigger. DSCR lenders set their own policy, and some keep requiring coverage. Submit the issued letter and ask for a written decision.
What is the difference between an Elevation Certificate and an LOMA?
An Elevation Certificate documents and supports the request. An LOMA is the FEMA letter that amends the map. The certificate alone does not waive a lender requirement.
What if my property sits on fill?
You need an LOMR-F, not a LOMA. It carries an FEMA review fee and requires the community to find the land reasonably safe from flooding. It is slower and less certain.
Can I cancel my policy after the LOMA arrives?
Often yes, if the lender releases the requirement in writing. Confirm refund terms with your insurer and keep the letter on file.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. FEMA – How to Request a LOMA or LOMR-F
2. FEMA – LOMA and LOMR-F Process
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Recycle BRRRR Capital With a HELOC Before a DSCR Refinance · How a DSCR Lender Counts Flood Insurance When an LOMA Applies · How to Use a DSCR Loan on Your Own Rental as an Agent
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.