Can power lines, encroachments or a shared driveway affect my mortgage?

What are the rules for power lines?

HUD's Handbook 4000.1 says an overhead electric transmission line can't pass directly over the home, another structure or related improvements such as a pool. The line would have to be moved for the home to qualify for FHA. The service line that runs to the house can't pass directly over a pool, spa or water feature.

If the home or improvements sit inside a utility easement, the lender needs a statement from the utility or local regulator that the setup meets local standards and is safe. Appraisers also note how nearby lines or towers affect the home's appeal to buyers.

What counts as an encroachment?

An encroachment is when a building crosses onto land it shouldn't. For FHA, the home, garage or other improvements can't extend onto a neighbor's lot, a right-of-way, a utility easement or a building restriction line, and a neighbor's buildings can't extend onto the home's lot. A fence that crosses the line is acceptable as long as it doesn't affect marketability.

Fannie Mae's Selling Guide has the appraiser reflect easements and encroachments in the analysis, since they can help or hurt a property's value. A survey or plot plan can show where buildings sit compared with the lines, and your title insurance may list encroachments as exceptions. See owner's title insurance in NH.

Is a shared driveway a problem?

Not by itself. HUD requires safe pedestrian access and adequate vehicle access from a public or private street. Private streets and shared driveways must be protected by a permanent recorded easement, an ownership interest or a homeowners association. HUD says they don't need a joint maintenance agreement.

Private and Class VI roads in NH raise other questions. See Class VI and private roads.

What other nearby issues do appraisers check?

For FHA, the appraiser reports on outside conditions such as heavy traffic or railways, airport noise, high-pressure gas or petroleum pipelines, and smoke, fumes or poor drainage. A home or improvement within 10 feet of a pipeline easement's boundary is flagged as not meeting HUD's standards. A home in a runway protection zone at a civil airport needs the buyer's written acknowledgment, and new construction there isn't eligible.

What should I do if I see one of these?

• Ask the seller for the deed, any easements and any survey or plot plan.
• Mention it to Tom before you make an offer, so he can check it against the loan you're using.
• If FHA won't work for the property, a conventional loan may still be an option. See comparing loan programs.