FHA Financing on a property with private Septic or Well

Thursday, May 2, 2013

Did you know – FHA requires that connections be made to public sewer and water systems if they are available and if it is “feasible” to do so.  

 When representing a buyer on a home that is set-up with a Septic or Well system you may want to discuss this with the listing agent.   You will want to find out if there is a connection available near the home. 

Then you need to have the agent verify that the connection is available with the local city/ county authorities.

 If a public connection option does exist, the sellers will have to decide if they can agree to make the investment required for FHA financing.  If not, the buyers need to be made aware of the costs.

 The repairs must be completed prior to closing.

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