Environmental

A Kentucky property is located in a FEMA-designated 100-year flood zone. As a result:

AThe property cannot be purchased with a mortgage
BThe buyer with a federally backed mortgage may be required to purchase flood insurance✓ Correct
CThe property value automatically increases due to proximity to water
DKREC must approve the sale

Explanation

Properties in FEMA-designated special flood hazard areas (SFHAs) with federally backed mortgages are required to carry flood insurance under the National Flood Insurance Program (NFIP).

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