November 4, 2016
A reader asked a question recently about high voltage transmission lines and the FHA loan rules that address them in relation to the property to be purchased with an FHA mortgage. “I am looking to find info regarding High Voltage Transmission Lines. I know that in 4150.2 that it clearly states that the dwelling or other improvements can not be within the fall zone. However I am not locating this info in more updated references. Can you help with me finding this info?”
FHA loan rules were updated in HUD 4000.1, and have since replaced many older references. According to the FHA/HUD official site, “The Federal Housing Administrations (FHA) Single Family Housing Policy Handbook 4000.1 (SF Handbook) is a consolidated, consistent, and comprehensive source of FHA Single Family Housing policy”.
In HUD 4000.1, on page 160, we learn the following:
“The Mortgagee must confirm that any Overhead Electric Power Transmission Lines do not pass directly over any dwelling, Structure or related property improvement, including pools. The power line must be relocated for a Property to be eligible for FHA-insured financing.” This section of the FHA loan rule book adds, “The residential service drop line may not pass directly over any pool, spa or water feature”.
And finally, this section states, “If the dwelling or related property improvements are located within the Easement area, the Mortgagee must obtain a certification from the appropriate utility company or local regulatory agency stating that the relationship between the improvements and Local Distribution Lines conforms to local standards and is safe.”
High voltage transmission easements, gas pipeline transmission, and other conditions may be more problematic for some properties than for others. In cases where this could be an issue for the FHA appraisal, FHA loan rules AND state law, local ordinances, and other requirements may all have a say. It’s never safe to assume that the FHA loan rulebook has the final work on high voltage transmission lines or other aspects of the property subject to building codes, federal law, etc.
Borrowers may understand what the FHA loan rules say about such issues, but knowing what building codes and possibly even state law might have to say can be a major help in determining whether or not a property might “pass” an FHA appraisal.
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.
Browse by Date: