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What are guidelines for well and septic on convetional loan?

by rachael279 from Poestenkill, New York. Jul 14th 2016 Reply


Scott Fix (ScottFix)
#1325 ranked lender in California - 184 contributions

Typically, they can vary from lender to lender. As a buyer, you should be concerned with the well and its purity and production. Regarding the septic, be concerned about the amount of waste and debris in the system as well as the integrity of the leach lines. If either of these are not in the best working order or fail, it can become an excessive cost burden to re-establish or repair one or both. As an agent, I always suggest minimally that these items are checked so that going into the sale, it is known that they are acceptable at the time of close. Now, if the appraiser goes out to a property and mentions the septic or well, the lender can make it a condition of the loan that these items are to be evaluated for function and integrity. All the best, Scott.

Jul 14th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

More info needed.. The rules vary depending on which loan product you are applying for.. Some loan's have a maximum amount of homes on one well while others don't care.. however, regardless of the loan program, if the appraiser makes a note on the appraisal that there is cause for concern about the well or septic system.. then those items would have to be corrected prior to the lender issuing a loan.. Example: Appraiser notes that the ground is unusually wet surrounding the area where the septic tank is located.. he could make his appraisal "Subject To" a clean and clear septic inspection. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jul 14th 2016
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