FHA denial due to proximity to gas station?

[Jason Hines]

I put an offer in on a multi unit last week. The seller just got back to us stating that he would be willing to negotiate but that he believes FHA mortgages won't be approved because of the proximity to a gas station.

I did find this on the US Dept of Housing and Urban Dev's website which states "Stationary storage tanks containing flammable or explosive material pose potential hazards to housing, including hazards from fire and explosions. If the subject property line is within 300 feet of an aboveground, stationary storage tank with a capacity of 1,000 gallons or more of flammable or explosive material, then the property is ineligible for FHA insurance. The Appraiser must notify the Mortgagee of the deficiency of Minimum Property Requirements (MPR) or Minimum Property Standards (MPS), so the Mortgagee can determine the eligibility."   

Looking at Google maps, the property is ~184ft from the property, but the gas station doesn't have any ABOVE ground tanks that can be seen via Google Street View. My searching online has found some people talking about this, but also mentioning that BELOW ground tanks can also cause the loan to be denied.

I'd be happy to share the address via DM if you want to take a look for yourself. If you are an FHA appraiser, I'd love to your thoughts.