July 29, 2011
The location of the home an FHA loan applicant wants to purchase affects many things connected to FHA loan approval. The FHA loan limit is a good example–these limits are set by county and vary depending on the housing market in a given area.
Homes located in some counties may have requirements based on local building codes other areas don’t require. And some properties may get closer scrutiny if they are located in or near flood zones or other areas identified as prone to natural disasters.
With all that in mind, some borrowers may worry about the eligibility of a particular home for an FHA loan based on its proximity to airports or military air fields. Is a property rendered ineligible for an FHA home loan because it is in an airport noise zone or within “runway clear zones”?
According to the FHA, there once were noise requirements for single-family properties, but no longer–except for new condominium projects.
The FHA rules state, “Airport Noise Properties are not to be rejected solely because of airport influences (noise) if there is evidence of acceptance in the market and if use of the dwellings is expected to continue.”
Note the caveat in that statement–market acceptance is key. If the resale value of a home purchased with an FHA mortgage could be adversely affected by its proximity to an airport, the lender may be within his or her rights to take a second look at the loan. “Special consideration should be given to determine if there is indication that adverse changes in market attitude are taking place in the area.”
The homes located in or near runway clear zones, runway protection zones near civil airports, and military airfield “accident potential zones” are technically eligible for FHA home loans, but only when the buyer is informed of this and commits to the purchase with full disclosure.
The FHA official site says, “All dwellings are acceptable provided the prospective purchaser acknowledges awareness that the property is located in a Runway Clear Zone/Clear Zone…This notification must be provided to the prospective purchaser at the time loan application is initiated.” The FHA rules also refer to a certification which must of this acknowledgment which must accompany other loan paperwork.