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Old 04-16-2009, 11:36 PM
Kevin Thompson Kevin Thompson is offline
 
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Default FHA - public utilities cost to hook up

Are FHA appraisers required to determine if city water and sewer are available when the subject is on a septic and well?
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Old 04-17-2009, 12:10 AM
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Vegan702 Vegan702 is offline
 
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Yes you are
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Old 04-17-2009, 12:42 AM
Kevin Thompson Kevin Thompson is offline
 
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Thanks, found it in the manual. Silly me.
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Old 04-18-2009, 08:46 PM
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h2obio h2obio is offline
 
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I ran into this recently and argued unsuccessfully.......basically, they want to know if it's "feasible". So, considering the sewer hookup was several miles away, it didn't appear feasible....... the county planner wouldn't stand up and make that statement, so I was forced to......good luck!
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Old 04-18-2009, 09:43 PM
kevingrehan kevingrehan is offline
 
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Underwriter to decide. How the heck do you know how much it cost to run plumbing to a subject. Unless you are a plumber. I'm waiting for someone to tell me where a drain field is!
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Old 04-18-2009, 10:17 PM
timd354 timd354 is offline
 
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Quote:
Originally Posted by h2obio View Post
I ran into this recently and argued unsuccessfully.......basically, they want to know if it's "feasible". So, considering the sewer hookup was several miles away, it didn't appear feasible....... the county planner wouldn't stand up and make that statement, so I was forced to......good luck!
What are you talking about? If the water and sewer is not available at the property line (usually in the street or an alley), then it is simply not feasible to hook up unless the property owner has the ability to run water and sewer across public property and or neghboring private properties (which obviously is not the case).
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Old 04-18-2009, 11:11 PM
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Lloyd Bonafide Lloyd Bonafide is offline
 
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Originally Posted by timd354 View Post
What are you talking about? If the water and sewer is not available at the property line (usually in the street or an alley), then it is simply not feasible to hook up unless the property owner has the ability to run water and sewer across public property and or neghboring private properties (which obviously is not the case).
Exactly right. If they are at the street, then the underwriter might have something to think about. But it can cost a small fortune just to get permits, and get the sewer or water hooked up from in front of your house. And if the property owner has a septic system that works, then in my mind it is not economically feasible to hook up to a public sewer, especially in a high-cost permit area where it might cost the property owner $20,000 or more for the permit plus the actual cost of the work.
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Old 04-18-2009, 11:34 PM
Tom Woolford Tom Woolford is offline
 
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Someone probably will correct me, but I believe the threshold is if the cost is 3% of MV or less to complete the hookup. That said, Most lenders are not going to wait while bids are made to get that figure. It does happen. I had a home that had sewer available on the street, but the house was built before it was installed and was on septic. Cost to connect was much less than the 3%.
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Old 04-19-2009, 10:19 AM
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h2obio h2obio is offline
 
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I believe that Tom is correct about the 3%. It comes down to whether you are willing to state that it's "feasible" or not.........in most cases it's not, but if the utilities are at the street it may be feasible.......in my case the UW wouldn't back down and the utilities were several miles away, so I was forced to make the statement that it was not feasible--after arguing for two weeks.........
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Old 04-19-2009, 12:00 PM
Mike Boyd Mike Boyd is offline
 
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Quote:
Originally Posted by Lloyd Bonafide View Post
Exactly right. If they are at the street, then the underwriter might have something to think about. But it can cost a small fortune just to get permits, and get the sewer or water hooked up from in front of your house. And if the property owner has a septic system that works, then in my mind it is not economically feasible to hook up to a public sewer, especially in a high-cost permit area where it might cost the property owner $20,000 or more for the permit plus the actual cost of the work.
Then, it is not feasible, is it? What's the problem?

Marshall & Swift has cost estimates to run water and sewer lines. Typically, there are also water and sewer HOOK-UP FEES in addition to the actual cost of extending the main lines.

Furthermore, the subject may not be in a district that allows public funding or the use of the public facilities. It may have to first be ANNEXED into a district. Typically, if water and sewer is NOT in the street, it is not feasible.
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