Flood Zones

Can you believe our perfect house may be out of our reach simply because of the flood zone it is in? The loan we are hoping to get will not go through on a house in a 100-year flood zone with one exception. The problem is that we now need a surveyor to help us determine whether that exception applies. If I understand the language of this particular loan (USDA), then I think it is a foregone conclusion; I imagine they simply need an official document (elevation certification). The underwriting reads as follows: "First floor elevation of both existing and new construction must be above 100-year flood base elevation [the top of the ground], no exceptions." It seems straight forward to me. It sounds like if the home is elevated at all (it is not flush with the ground or does not have a basement) then we are good to go, and the biggest obstacle is conquered. The downside is that our flood insurance will be a little pricey. But believe me when I say this: the house is worth the extra insurance premium. It is that perfect for us. The most frustrating thing about all of this is that according to the FEMA flood zone map, only about half the house is actually in the flood zone, and the house right next door, no higher in elevation, is not in that flood zone. The house is next to a creek. While we were walking through the house this morning, a city building inspector was present and told us that even during the most catastrophic flood this area has seen in the last 50 years (in 1969) that area still did not flood. That greatly adds to the frustration. Needless to say, we are hoping that this works out positively for us because any other type of loan would likely put the payments out of reach for us because we simply cannot come up with a 20% down payment. Also, after walking through the house, we cannot dream of living any where else.