October 15, 2014
Sometimes we get lengthy reader questions that require detailed answers, and other times we get quick, easy-to-answer questions. Today we field two of those from readers who want to know some FHA loan basics. Our first reader question:
“What are the requirement for houses close to gas station?”
It’s not clear exactly what the reader wants to know–more detail is needed for an in-depth answer, but we can probably assume the reader wants to know if there are FHA minimum property requirements for homes located near a commercial gas station.
While the FHA loan rulebook doesn’t specifically address this situation, it should be noted that no home located within a “high pressure gas pipeline easement” can be eligible for an FHA home loan. Whether or not this pertains specifically to this reader’s circumstances is unclear and it may be necessary to ask the local authority whether this applies. “Local authority” in this case may be a surveyor or a county assessor’s office or some other official arm that would have records of where these transmission easements are located.
FHA minimum property requirements generally don’t address the location of the home near commercial enterprises except for the easement issue mentioned above. State and local building code may have something to say about such properties, however, and FHA minimum requirements include the need for the property to be purchased with an FHA loan to meet state/local code.
Our second FHA loan reader question:
“Can I refinance a conventional loan into an FHA loan. What must ratio be for LTV?”
The short answer is yes, you can refinance a conventional mortgage into an FHA loan. LTV requirements for FHA refinancing loans vary depending on the nature of your refinance loan. In general depending on circumstances and the nature of your refinancing loan you may be able to refinance between 85% and 95% LTV. (This assumes a qualified borrower.)
To get more specific information on the LTV requirements on your FHA refinance loan, speak to a loan officer about your specific needs.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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