Environmental
A property located in a Special Flood Hazard Area (SFHA) must obtain flood insurance if:
AThe property has a basement
BIt has a federally backed mortgage loan✓ Correct
CIt is in a county that participates in FEMA's National Flood Insurance Program
DThe seller requests it
Explanation
Federal law (the National Flood Insurance Reform Act) requires flood insurance for properties in Special Flood Hazard Areas (100-year floodplains) that have federally backed or regulated mortgage loans. This applies to both new loans and refinances.
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