Is a new construction property located within an Airport Runway Clear Zone eligible for FHA?

If a proposed or newly constructed property is located within Runway Clear Zones (also known as Runway Protection Zones) at civil airports or within Clear Zones at military airfields, the Mortgagee must reject the property for insurance.   A proposed or newly constructed property located in Accident Potential Zone I at military airfields may be eligible for FHA mortgage insurance provided that the Mortgagee determines that the property complies with Department of Defense guidelines. 

For additional information see Handbook  4000.1 II.A.8.i.vii(A)(4) and II.D.3.c.iii(C)(3) at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-05068