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Dug Wells

Discussion in 'FHA/HUD and VA' started by Dan Hackett, Jul 12, 2004.

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  1. Dan Hackett

    Dan Hackett New Member

    Jul 12, 2004
    I'm a loan officer, not an appraiser, but I ran across this forum and figured I'd ask ... I've got two customers who really want to buy a house in a rural part of New Hampshire that's serviced by a dug well. It's not something we see often, and at first it looked like they could not finance with FHA. But the appraiser cited the FHA handbook which appears to allow dug wells with a complete report from an engineer. Problem is, it's not clear what type of engineer we need to be hiring: civil, sanitary, hydrogeologist with an engineering license? I'm wondering if anyone out there has ever encountered a similar situation, and what happened?
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    Welcome Don.

    I'm not personally familiar with the 'dug well' you are talking about but others here probably are and will hopefully be able to answer your question.

    My 'guess' is that a well driller might suffice or the county environmental department along with a water test for bacteria and chemicals.

    Another strong suggestion would be to call the nearest FHA HOC to ask them.
  3. Ghost Rider

    Ghost Rider Senior Member

    Apr 27, 2003
    Professional Status:
    Banking/Mortgage Industry
    Dan - Just a suggestion, you might have better luck on other boards - Check this one, it might help more.....Broker Grapevine

    I'm guessing the appraiser was non-specific about what type of inspector to utilize simply to limit his liability. The other suggestion, as you are going FHA, would be to get in touch with the HUD REAC center. Their phone number is 1-888-245-4860 or, you can check online @ REAC Center

    Hope this helps.
  4. tommcsherry

    tommcsherry Senior Member

    Mar 11, 2004
    Professional Status:
    Certified Residential Appraiser

    FHA handbook says:

    ...properties served by dug wells (are unacceptable) unless a complete survey conducted by an engineer was delivered to the lender and subsequently given to the appraiser.

    To be considered acceptable, the engineer's survey must include these items:
    - a health report with no qualifications
    - indication that an inoperative well was cased, sealed and capped with
    concrete to a depth of at least 20 feet
    - a pump test indicating a flow of at least 3-5 gallons per minute supply for
    an existing well, and 5 gallons per minute for a new well
    - an acceptable septic report
    - no indication of exposure to environmental contamination, mechanical
    chlorination or anything else that adversely affects health and safety

    County health dept might be able to do these things for you, they would certainly be able to provide some recommendations for you if they can't.
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