FHA Well/Spring Requirements

Discussion in 'FHA/HUD and VA' started by Elliott, Apr 21, 2006.

Thread Status:
Not open for further replies.
  1. Elliott

    Elliott Elite Member

    5
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    If a MH has a "surface spring"....or a "underground spring" as
    a water source, what water testing requirements would be
    required for FHA??

    I've got a lender who's telling me there is not a flow requirement.
    In my report I required a flow and potability test and that it was
    not a surface water system.

    What say ye??? Points will be given if you run into this all
    the time or can cite regulations.

    elliott
     
  2. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    I don't know the exact rules, but here's what I would do. Report that the subject water supply is a spring, note that public water is not available, note the Underwriter to make requirement. Why, "Underwriters bear primary responsibility for determining eligibility."
     
  3. Elliott

    Elliott Elite Member

    5
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    Jerry,
    Thanks for the response. It does pizz me off when they've
    had the report for 40 days and then they come to me on
    Friday at 4pm and want me to remove a condition.

    I looked over the HUD clips and even though FHA has moved
    closer to the conventional market....I don't think any
    lender wants a inadequate water system...or one that runs
    up a hill attached to a garden hose.

    Just another pushy MB.

    elliott
     
  4. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    There has to be an "adequate" flow and water pressure. If there is a septic tank it has to be at least 150 feet from the water source and preferably downhill. I would request an e-coli test if there is a septic. The water source has to be 10 feet inside the property line as well.

    I only run into well questions when there is a septic system. The state of New Mexico is now requiring a mandatory test if the property is well/septic and less than 0.75 actres. It goes up to 1 acre in January and will eventually apply to all parcels under 5 acres.
     
  5. Mr Rex

    Mr Rex Elite Member

    28
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Well and septic separation requirements are no longer part of FHAs protocol. See sketch requirements near the beginning of 2005-34 and the protocol under Site,Utilities in Mortgagee letter 2005-34. (Confirmed with HOC) BTW the old requirement was 100 ft.

    Wells are no longer required to be tested unless mandated by local jurisdiction. See Mortgagee letter 2005-48. There is commentary about "water-flow decreases noticeably when running simultaneous plumbing fixture being a case for "required inspection"" (2005-34, Site, Utilities) Springs are not particularly addressed in the changes, so I would suggest a call to your regional HOC for clarification. Be sure to get the name of the person from the appraisal section that gives you info (for your files:) )
     
    Last edited: Apr 22, 2006
  6. CANative

    CANative Elite Member

    30
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    "When the appraisal calls for a required inspection to:

    >Certify the condition and/or status of a mechanical or structural element of the property,

    >Protect the health and safety of the occupants

    >Protect the security of the propety

    >Meet FHA MPR's or MPS's

    The appraiser must indicate the reasoning for any required inspections and note this in the appropriate section of the appraisal, or in the "additional comments" section, or in an addendum, under the heading of "Reconciliation - Required Inspections" listing the required inspections."


    4150.2, 3-6

    The following water well conditions are unacceptable and must be noted (formerly in VC-4)

    Mechanical chlorinators

    Water flow that decreases noticeably...

    Properties served by dug wells unless a compelete survey conducted by an engineer was delivered to the lender and subsequently given to the appraiser

    Properties served by springs, lakes, rivers or cisterns

    In essence what I think you've done is required an inspection for an item that does not meet MPS. An inspection is not required because they can't get an FHA loan for a property with a spring.
     
    Last edited: Apr 22, 2006
  7. Wayne Tomlinson

    Wayne Tomlinson Senior Member

    0
    Jan 25, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    While FHA used to have a lot of stuff that an appraiser was supposed to require to be done, a lot of those things disappeared with the VC.

    I don't agree with many of those reductions. I think that people who are buying almost no money down homes need to have homes that are not going to need a bunch of stuff done to them soon after they move in.

    Check on FHA's recently reporting requirements.

    Wayne Tomlinson
     
  8. JSmith43

    JSmith43 Elite Member

    9
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Elliot: I am curious if there is a local health department authority that blesses such systems? Probably not, I assume.
     
  9. Elliott

    Elliott Elite Member

    5
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    Roger,
    I may not be a smart man....but

    I recall my sister telling me about her friend Janis,
    who got approval for a manufactured home by
    bringing a jar of water to a water tester. Janis
    went to a local restaurant and filled the jar.


    Greg,
    When I did the inspection, the house was vacant....
    so no one to tell me about the water system. Of
    course I could have deep sixed the property. But
    as I recall from my FHA training....better to complete the
    report and see if they can do something to meet the
    requirements. After all, they could go the well route.

    elliott
     
  10. Don Clark

    Don Clark Elite Member

    2
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    Check with HOC

    Some HOC's in some parts of the country DO approve wells, lakes and springs as a water source. Check with the HOC, or better yet, tell the DEU to do that.
     
Thread Status:
Not open for further replies.

Share This Page