"Flood insurance can be inexpensive for low-risk areas. If you don't have a basement, the annual premium for a preferred-risk policy can cost as little as $348 a year for the maximum coverage of $250,000 for your dwelling and $100,000 for your possessions, or $388 per year if you have a basement. Similar coverage can cost $1,484 per year in a moderate-risk area, or more than $2,600 in a high-risk area."
This house is already under contract with another buyer. You could put in a back-up offer in case the current deal falls apart. Your offer would not be submitted to the seller's lender unless the current buyer does not or cannot go through with the deal.
The house is located in a flood zone so yes, you would need flood insurance in addition to your homeowners insurance. Premiums vary from company to company.
If I can answer any other questions or help you locate a different house let me know.
Karen Nicolls, Realtor
Atchley International Realty