Did FHA change guidelines to allow proximity to underground tanks at gas station? (vs above ground)

[leonbernie]

I always understood that within 300' of a gas station is automatically disclosed & typically ultimately kills an FHA deal. I understand it's ultimately up to the underwriter. Had a loan passed off to a different mortgage company after I called out the proximity to a gas station, who called and pointed out FHA 4000.1 specifically states this rule is in regards to "above ground" storage tanks, not "inground". So within 300' of inground tanks is ok? Was that always the case or did it change? When inquiring with FHA they just send me a copy & paste of the paragraph in 4000.1 II.D.3.b.iii(C)(6)-(7) with no actual human narrative on the topic.

 

[JTip]

How many gas stations you know have above ground tanks? lol

 

[Terrel L. Shields]

Based on the direct download from HUD, I have nary a clue what HUD is saying or if there is a supplementary epistle contrary to above but apparently they have deleted the underground part of the text...but i suppose this is what the lender was referring to.

 

[JTip]

well I'll be

 

[CCAAMO]

So I guess John Denver's old home would not have qualified

 

[leonbernie]

View attachment 64756Based on the direct download from HUD, I have nary a clue what HUD is saying or if there is a supplementary epistle contrary to above but apparently they have deleted the underground part of the text...but i suppose this is what the lender was referring to.

Yup thanks! Seems like they changed it at one point, I'm not sure when, but didn't really make a big deal of it enough for anyone to realize. It appears that in this case the hustling mortgage guy is right. :-\ Thanks for the replies.

 

[Tom4value]

On my last FHA course I took for my CE, I saw they did away with it.

 

[OSU Beavers]

How many gas stations you know have above ground tanks? lol

Most of the gas stations around here also sell propane and have an above ground 1000 gallon propane tank on site

 

[glenn walker]

Normally you still report a station is nearby and 300 feet is pretty close but its not about safety but if the Subjects location is zoned residential , mixed use etc and is the location a negative on sale and marketability. Often a home near a station is on a busy street or commercial- zone --Today's gas stations are really safe compared to old ones. BUT it never automatically disqualified on a FHA even if less than 300 feet-
The appraiser just reported it and as long s owner of subject property-could get City-County EPA documentation showing it was permitted and was a safe distance then Underwriter could waive the 300 feet condition. Also as I recall the 300 feet was not measured to gas station but to where its underground tanks were located. I had one funded that was less than 200 feet from a house.

 

[Mike Ault]

All the FHA buyers had to do was sign a disclosure that they had been notified of the potential hazard/nuisance and the loan could proceed.