Environmental

A NH buyer's lender requires flood zone certification. If the property is in a FEMA-designated Special Flood Hazard Area (SFHA), the buyer:

AMay not purchase the property
BMust obtain flood insurance as a condition of the federally backed mortgage✓ Correct
CAutomatically qualifies for reduced premiums
DIs exempt from flood insurance if the mortgage is from a state bank

Explanation

Federal law requires flood insurance for properties in FEMA-designated Special Flood Hazard Areas (100-year floodplain) when the loan is federally regulated or insured. NH's rivers and coastal areas include many SFHA properties.

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