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Shared Septic FHA

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Nic

Freshman Member
Joined
Jul 30, 2017
Professional Status
General Public
State
New York
Hello. I am in the middle of trying to get a FHA loan for a house that shares a septic with two neighboring houses. There are legal documents in place and everything seems sound. But there is no CO for the septic (it was dug when the house was built in the 30's). The appraiser keeps asking for more and more documents. There seems to be come confusion. Does anyone have experience in dealing with getting shared septics through FHA? Will this be allowed?
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
This is not a FHA issue NO lender Fannie-Freddie -VA is going to issue a loan on a property built in the 30'S UNTIL a licensed Contractor - General Or a Septic expert looks at the system.. This my seem harsh but if the system backs up you have a house flooded with sewage ( a fancy word for poop ) DO not buy this house until you find out what condition this system is in. I have personally had properties I purchased where there was nothing but a 40 foot hole dug by some red-neck with a back -hoe and the crap was going into that hole..BUT a shared system built in the 1930'S hire a contractor or don't closes the deal .
 

Nic

Freshman Member
Joined
Jul 30, 2017
Professional Status
General Public
State
New York
This is not a FHA issue NO lender Fannie-Freddie -VA is going to issue a loan on a property built in the 30'S UNTIL a licensed Contractor - General Or a Septic expert looks at the system.. This my seem harsh but if the system backs up you have a house flooded with sewage ( a fancy word for poop ) DO not buy this house until you find out what condition this system is in. I have personally had properties I purchased where there was nothing but a 40 foot hole dug by some red-neck with a back -hoe and the crap was going into that hole..BUT a shared system built in the 1930'S hire a contractor or don't closes the deal .

Oh wow. I had no idea. I know he gets the septic pumped every few years and has the paperwork. The people who come to pump the tank don't do a check on it?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The people who come to pump the tank don't do a check on it?
Check the local law, health department. A working system should not need pumped routinely. Mine is 25 years old. How big is the leach field? You will likely need a sanitarian inspect it. Pumpers are just haulers, not engineers.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
there is no CO for the septic (it was dug when the house was built in the 30's)
Frequently in most jurisdictions it is the health department, not the building department, that regulates septic tanks. You may want to go see what records the health department has regarding this septic system. That won't eliminate the need for an inspection, but it could help answer questions for the inspector.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
All of the above provide good insight; Don't know how big your lot is / also don't know why you have a shared system for the past 70+ years / Don't know your required set backs or side lines;
Public Health Dept - Local to see what may be required (wetlands/setbacks/etc)
Septic Company to design the system required (if possible)

Good Luck, did you pay Cash for the Purchase ??
 

Nic

Freshman Member
Joined
Jul 30, 2017
Professional Status
General Public
State
New York
Frequently in most jurisdictions it is the health department, not the building department, that regulates septic tanks. You may want to go see what records the health department has regarding this septic system. That won't eliminate the need for an inspection, but it could help answer questions for the inspector.

So I've been in contact with the county health department. They are aware of the shared septic but have absolutely no information on it. So they wrote me a letter for the FHA stating that there are no complaints against the septic. That's really all they could do without having any information. I had the inspection already and he didn't say anything about the septic. But the appraiser seems nervous about it.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
So I've been in contact with the county health department. They are aware of the shared septic but have absolutely no information on it. So they wrote me a letter for the FHA stating that there are no complaints against the septic. That's really all they could do without having any information. I had the inspection already and he didn't say anything about the septic. But the appraiser seems nervous about it.

Home Inspectors typically do not inspect septic systems. In many states, there are licensed septic system inspectors. A 1930's shared septic system is beyond sketchy at best.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
I think the lender will want the property to have its OWN private septic system, at least that's what I've encountered.

Your results may vary.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
That's really all they could do without having any information
Is the septic tank located on "your" property or one of the adjoining sites? Are you aware if there is an access, maintenance and use agreement? If so, is this document recorded?
 
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