Environmental

A property located in a FEMA Special Flood Hazard Area (SFHA) with a federally backed mortgage:

ARequires no additional insurance unless the buyer requests it
BMust have flood insurance purchased through the National Flood Insurance Program (NFIP)✓ Correct
CIs automatically excluded from conventional financing
DMust be disclosed only by the seller's agent

Explanation

Federal law requires that flood insurance be purchased on properties in FEMA-designated Special Flood Hazard Areas (100-year floodplains) when the mortgage is federally backed. The insurance must be obtained through the National Flood Insurance Program (NFIP) or an approved private insurer.

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