Hauled Water Allowable For FHA?

[KYLECODY]

I thought it had to be well, public or private. Received an order where they are hauling to a cistern.

Would this have to be done subject to a well being installed, cannot find the guideline specifically.

 

[CindyR]

I'd call the HOC on that one for sure

 

[Mr Rex]

E: Cisterns: HUD Handbook 4150.2 Section 3-6 indicates that properties served by cisterns and other alternative water sources are not acceptable for mortgage insurance. However, the HOCs have the authority to consider waivers for existing properties over 1 year old and located in areas where cisterns are typical. The HOC?s ability to waive this prohibition does not apply to new or proposed construction.

 

[Michigan CG]

We have a lot of properties here with cisterns and they are fine for FHA.

 

[RSW]

Taken from the 4000.1:

(1) Conditions for Individual Water Supplies

The Appraiser must note the deficiency of MPR or MPS if the subject Property contains a well located within the foundation walls of an existing dwelling and there is no evidence that the local jurisdiction recognizes and permits such a location, that it is common for the market area, and does not adversely affect marketability unless the well is located within the foundation walls of a New Construction dwelling in an arctic or sub-arctic region.


The Appraiser must report when water to a Property is supplied by dug wells, cisterns or holding tanks used in conjunction with water purchased and hauled to the site. The Appraiser must report whether such systems are readily accepted by local market participants and that the water supply system may violate MPR or MPS.


The Appraiser must note the deficiency of MPR or MPS if the subject Property has a water source that includes a mechanical chlorinator or is served by springs, lakes, rivers, sand-point or artesian wells.


A pressure tank with a minimum capacity of 42 gallons must be provided. However, pre-pressured tanks and other pressurizing devices are acceptable if delivery between pump cycles equal or exceed that of a 42-gallon tank. Tanks must be equipped with a clean-out plug at the lowest point and a suitable pressure relief valve.

 

[glenn walker]

I would for sure get something in writing from your HOC *** Yes lot's of properties have cisterns but those are served by a good well and a pump. There is one area in California where folk's are hauling in water and the real estate is virtually worthless. It's a hard life hauling water and most of these properties are owned free and clear. If for some reason the person buying or refinancing this property defaults this will be their first legitimate reason. I can see the phone calls to HUD we have NO water and therefore cannot pay our mortgage , the keys are under the flower pot on the porch the electric and propane are also not available because the local utility closed up due to lack of water and nobody told us it was such a hard life !

 

[Jo Ann Meyer Stratton]

Properties that haul water in an area east of Kingman in Mohave County are accepted by Santa Ana HOC.. But I understand that is the only acceptable area for hauled water in Arizona.

 

[CindyR]

Quick MLS search shows FHA financing for some properties in New River with Hauled water.