• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

FHA Requirements-well And Septic

Status
Not open for further replies.

Appraisal Solutions

Thread Starter
Sophomore Member
Joined
Jul 24, 2007
Professional Status
Certified Residential Appraiser
State
New York
I did an FHA appraisal for a purchase transaction and called for the subject to be hooked into the muni water available because subject was on a well.

I'm being told that FHA "no longer requires connection to public utilities on purchase transactions regardless of the feasibility to connect." That's news to me, especially considering that the well and septic distance requirements are impossible due to the lot size only being 50 feet by 80 feet.

Has anyone heard that FHA doesn't require hookup to muni svcs if available and feasible anymore? I couldn't find any such changes on FHA.gov.
 
D

Deleted member 128537

Guest
That must be new. I thought that if municipal water and sewer were feasible it was required. Interesting. Then why do we put in the report no municipal sewer or water is available? You just have to love the bureaucracy. Did you call the regional office on that? I would before I would depend upon any lender statement.

It wasn't too long ago that I did an FHA and they didn't get the loan because well and septic distances were too close. It was OK for the county, but not FHA. Which again doesn't make much sense.
 

Appraisal Solutions

Thread Starter
Sophomore Member
Joined
Jul 24, 2007
Professional Status
Certified Residential Appraiser
State
New York
Did you call the regional office on that? I would before I would depend upon any lender statements.[/QUOTE said:
That was plan B. I spent a little time trying to look it up so I could just send the relevant citations but I couldn't find anything recent.

Thanks for the input.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
It wasn't too long ago that I did an FHA and they didn't get the loan because well and septic distances were too close. It was OK for the county, but not FHA. Which again doesn't make much sense.
Esp when they state that if it's OK for the county, it's OK for FHA
 

Appraisal Solutions

Thread Starter
Sophomore Member
Joined
Jul 24, 2007
Professional Status
Certified Residential Appraiser
State
New York
This is what Regional had to say:

"The feasibility for public water hook-up is still a requirement, but it is the Mortgagee that makes that determination. That said, if the site is too small to support the minimum distance requirements mandated by HUD Minimum Property Requirements, and a public water hook-up is available, then the hook-up becomes mandatory. Otherwise the property is unacceptable as an eligible entity for FHA insurance. The Appraisal should reflect and detail the requirements. Refer to HUD Handbook 4000.1 for additional information."
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Of course common sense never comes into play.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks