Environmental

A Connecticut property is located in a Special Flood Hazard Area (SFHA). The mortgage lender will most likely require the buyer to:

APurchase earthquake insurance
BPurchase flood insurance through the National Flood Insurance Program (NFIP)✓ Correct
CElevate the structure before obtaining a mortgage
DObtain a DEEP environmental clearance

Explanation

Federal law requires lenders making federally related loans on property in a SFHA to require the borrower to purchase flood insurance through NFIP. Connecticut has many coastal and river flood zones where this requirement applies.

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