Environmental

A Hawaii property is located in a Special Flood Hazard Area (SFHA). Under federal law, buyers with federally backed mortgages are required to:

APay a flood zone surcharge at closing only
BPurchase flood insurance✓ Correct
CObtain a seismic survey
DInstall a seawall

Explanation

Properties in SFHAs (100-year floodplain) with federally backed mortgages are required by federal law to carry flood insurance through the National Flood Insurance Program (NFIP).

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