Private well & septic

[Doug in NC]

I know FHA used to require inspections (under old rules) on private well & septic systems, provided public hookup was not plausible. No signs of problems were apparent with the well & septic system, do I still call for or "recommend" an inspection of these utilities, or has this changed with the recent rules change?

 

[painterinpa]

My understanding is you mearly state if there are any local, township laws regarding mandatory inspections or cleanings and leave it up to the underwriter to decide.

 

[painterinpa]

and of course if they are located within 50 feet of each other you are to recommend inspections

 

[Mr Rex]

See pages 3 & 4:

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf

 

[ghrousseau]

I know FHA used to require inspections (under old rules) on private well & septic systems, provided public hookup was not plausible. No signs of problems were apparent with the well & septic system, do I still call for or "recommend" an inspection of these utilities, or has this changed with the recent rules change?

We currently only require them as a lender on new construction, or if the appraiser makes a recommendation. My experience is that for most purchase transactions, on advice of the real estate agent, the buyer goes ahead anyways and gets a well and septic for existing construction.

But to answer your question, it is not required on existing.

Mortgagee Letter 2005-ML-48

Mortgagee Letter 2006-33 deals with the requirements for New Construction.

 

[Doug in NC]

Thanks Rex. I have added that info to my FHA reference file.

 

[G-man]

In rural areas.

If your property is in a rural area, which in my market most properties with well & septic are in, then a well test is required if the well is within 1/4 mile of "intensive agriculture". Of course, FHA doesn't define intensive, but for me, if there is any type of farm field near the home, I require the well to be tested.
If the property has been vacant, ie. an REO property, then a septic test should be recommended, as any evidence of failure may have subsided as they is nobody using the system.