Deanna and I recently had a Realtor come to us with a FHA buyer interested in purchasing a new home in a subdivision.  Unfortunately the home we located within the fall zone of a high voltage power line tower.  Per FHA (also VA and USDA) rules this home cannot be financed by HUD.  Therefore we were unable to finance the property using FHA.  Fortunately the client had the 5% of their own funds for a down payment and we could go conforming.  

Remember as well the FHA loan limit is up to $303,750 (for anyone below 700 score this will be the best solution).  For refinances on 15-yr mortgages if the borrower has more than 22% equity FHA may actually be the better solution as FHA rates are much lower than conventional (15-yr FHA MTGs with 22% equity or more there is no monthly MI).

The FHA, VA and USDA rule is as follows:

OVERHEAD HIGH-VOLTAGE TRANSMISSION LINES

         No dwelling or related property improvement may be located within the engineering (designed) fall distance of any pole,tower or support structure of a high-voltage transmission line, radio/TV transmission tower, microwave relay dish or tower or satellite dish (radio, TV cable, etc.).  For field analysis, the appraiser may use tower height as the fall distance.

         For the purpose of this Handbook, a High-Voltage Electric Transmission Line is a power line that carries high voltage between a generating plant and a substation.  These lines are usually 60 Kilovolts (kV) and greater, and are considered hazardous.  Lines with capacity of 12-60 kV and above are considered high voltage for the purpose of this Handbook.  High voltage lines do not include local distribution and service lines.

         Low voltage power lines are distribution lines that commonly supply power to housing developments and similar facilities. These lines are usually 12 kV or less and are considered to be a minimum hazard.  These lines may not pass directly over any structure, including pools, on the property being insured by HUD.

Please be aware, the reviewer of your file may require additional documents to make a final determination.

Have a fantastic week and remember we are here for you.  Happy New Year: be with you next week!

The Valeo-Croy Team - Call today

Todd Croy - NMLS #91428 NC, SC (704) 488-7763
Deanna Valeo - NMLS #91421 NC, SC, VA (704) 488-1421

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Due to new Federal Laws we are now providing a link to Mortgage News Daily average rates for mortgages - please see the note below regarding the rates listed.

http://www.mortgagenewsdaily.com/mortgage_rates/

**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
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The Valeo-Croy Team and New American Mortgage Bankers are Equal Housing Lenders.This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for New American Mortgage to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply.   Date: 12/27/2011