VA and FHA loans are not available in COBRA zones because the Coastal Barrier Resources Act removed the Federal government from financial involvement associated with building and development of these protected areas. Communities may permit development in these areas, provided the development meets the Flood Insurance Rate Maps.
But as a buyer you will be required to go with a Conventional loan and a higher down payment if you plan to purchase a home in the COBRA zone. You can check to see if the property you plan to purchase is in a COBRA zone by visiting FEMA.com, then you will not be caught off guard at the last moment with the wrong type of loan.
Bev Dudley, Realtor