The appraiser had already completed their appraisal

Posted 3/2/2025

This is one of those horses behind the cart issues.The lender thought this was a Limited 203k and proceeded to close. The underwriter noticed a pest report in the file and read it. Oops, there was a minor structural repair called out. If they had known up front of the structural issue and had me out there first, we could have changed the financing to conventional.

This is where experience comes into play. They actually called me out for two that week, the other one closed a day later than it was originally expected to close. But this one wasn't ever going to close. Turns out the appraiser wasn't up on high tension towners. FHA won't finance a home within the "fall distance" of a High Tension tower. When I arrived at the site in my Chrysler 300 I pulled out my handy dandy cel phone and called the underwriter. I asked if HUD had changed their view on homes within the fall discance of High Tension Towers. She told me no and I sent her this photo. 

For all you newbies out there The old appraisal guideline would disqualify this home from an FHA loan guarantee. 

Based on my understanding of the HUD Handbook 4000.1, the approach to FHA property evaluations regarding proximity to high-tension power lines has evolved. Here's a breakdown:

• Shift in Focus:The emphasis has moved away from strict "fall distance" measurements.
  Instead, the focus is on assessing potential safety hazards.
  
• Current Guidance:If an appraiser observes that a property or its improvements appear to be located within an "unacceptable distance" of a power line or tower and there's a perceived safety risk, they are required to notify the mortgagee.
  This triggers further evaluation to determine if mitigation is necessary.
  Essentially the appraiser must call out any safety concerns.
  
• Key Takeaway:The current guidelines prioritize professional judgment and the identification of actual safety concerns over rigid distance rules.