Here is a quote from Chapter 12 of Handbook 3555 on page 12-28 concerning hazard identification due diligence:

“12.10 HAZARD IDENTIFICATION

A. Due Diligence

Lenders are required to utilize due diligence with regard to potential environmental

hazards to ensure the property is, safe, sanitary, and has sufficient value to adequately

secure the loan. The property must be free of known hazards that may have adverse

effects on the health and safety of the occupants. The structural soundness of the

dwelling must ensure customary use and enjoyment of the property by the occupants.

While the Agency does not specify how the lender’s due diligence must be conducted,

the level of review must be equivalent to the standards established by Fannie Mae,

Freddie Mac, the Federal Housing Authority (FHA), or the United States Veterans

Administration (VA).

Appraisers play an important role in identifying potential environmental hazards by

notifying the lender of concerns identified during their visit to the property. The

appraiser is required to note readily observable conditions. If the lender knows or is

informed by another party of a potential hazard, the information must be disclosed to the

appraiser. Lenders must follow up on all potential environmental hazards identified by

an appraiser to determine the nature and scope of the problem, and the impact the

problem is likely to have on the property’s value. If potential environmental hazards are

noted, the lender must carefully document the suspected problem and the findings of its

investigation.

If the lender’s investigation reveals an environmental hazard does exist, the lender

must ensure the hazard is mitigated before requesting the loan guarantee.”

Here is a link to Chapter 12:  https://www.rd.usda.gov/files/3555-1chapter12.pdf .  We don’t have a rule like FHA that prohibits making a loan on a property that is within 300 feet of a gas station.  This is a USDA call, not an FHA call, which really means it’s a lender call as stated above.  As part of your due diligence, I suggest contacting EPA and the Indiana Department of Environmental Management (IDEM) to see if there have been any instances of hazardous chemical leaks and if either of these entities are monitoring ground water in the area.  It would be a mitigating factor if the property is on a municipal water supply instead of a private well.  As far as being eligible on our website, this only pertains to the property being located in an eligible rural area.  The map doesn’t imply that EVERY property in an eligible area is eligible for our program. 

STATE OF INDIANA:  

*IDEM/EPA:  800-451-6027  

Search Virtual Cabinet:   https://vfc.idem.in.gov/FacilitySearch.aspx

Also complete Indiana State form 5552 and send it in to the IDEM so they can research and give you 100% surety if there are any potential environmental hazards are identified