Environmental

In Colorado, buyers of property in a 'Special Flood Hazard Area' (SFHA) on FEMA maps are required to:

AA. Elevate their home immediately
BB. Purchase flood insurance as a condition of obtaining a federally backed mortgage loan, as required by the National Flood Insurance Program (NFIP)✓ Correct
CC. Only purchase flood insurance if they choose
DD. Apply for a FEMA exemption before closing

Explanation

Properties in FEMA-designated Special Flood Hazard Areas (SFHA, or 100-year floodplain) must have flood insurance as a condition of federally backed mortgages (FHA, VA, conventional conforming loans). This requirement is mandated by the National Flood Insurance Program (NFIP). Properties in SFHAs face elevated flood risk and insurance requirements.

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