@Paul Malandrinos Well, I'm guessing you have a conforming loan under your name... 

If you wish to stick with a conforming product, you may be able to. 

MUCH easier cash management and can leverage conforming loans (remember, legal entities such as LLC's are NOT eligible for conforming residentials loans, so no complaining about having to use commercial lending). 

I just refinanced 6 conforming loans this month (all investment homes.)

Their business model relies on deal flow, and that requires some conformity to what the secondary market is willing to buy.

It is not that you can't rebuild, the rule requires that you must bring the structure into conformance with the updated flood rules. 

If you have the assets to validity a LLC then what most people do is either use a portfolio lender, or if using a conforming loan purchase in your name first, and then move to the LLC.- Call John Roach from Synovus Bank.

Anyone get a straight answer from property insurers regarding insuring improved property comprised of solely legal non-conforming buildings?

If your FICO is 680 and 10% down to the High Balance Conforming limit in your area. 

Properties are grandfathered in and do not need to conform to the new zoning of RS-3 unless you are attempting to significantly alter them.