Environmental

An Iowa property buyer discovers the property is in a FEMA-designated Special Flood Hazard Area (SFHA). This means:

AThe property cannot be mortgaged
BFlood insurance is required if the property has a federally backed mortgage✓ Correct
CThe property must be elevated before closing
DThe buyer must waive the purchase contingency

Explanation

Properties in FEMA-designated Special Flood Hazard Areas (100-year floodplain) with federally backed mortgages are required to carry flood insurance through the National Flood Insurance Program.

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