FHA Well/Spring Requirements

[Elliott]

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

 

[Jerry Bone Jr]

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."

 

[Elliott]

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

 

[Lobo Fan]

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.

 

[Mr Rex]

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 )

 

[CANative]

If a MH has a "surface spring"....or a "underground spring" as
a water source, what water testing requirements would be
required for FHA??

"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.

 

[Wayne Tomlinson]

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

 

[JSmith43]

Elliot: I am curious if there is a local health department authority that blesses such systems? Probably not, I assume.

 

[Elliott]

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

 

[Don Clark]

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.