Environmental
A property owner near a Texas floodplain discovers their property is in a Special Flood Hazard Area (SFHA). Under FEMA's National Flood Insurance Program, the property owner in a participating community:
AIs prohibited from obtaining a mortgage
BMay be required to purchase flood insurance if they have a federally backed mortgage✓ Correct
CAutomatically receives free flood insurance
DMust elevate the structure above the base flood elevation immediately
Explanation
Properties in a FEMA-designated Special Flood Hazard Area (SFHA, or 100-year floodplain) with federally backed mortgages are required to purchase flood insurance. Standard homeowners insurance does not cover flood damage. Lenders require NFIP or private flood insurance as a condition of the loan.
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