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FHA City Water And Sewer Hook-Up Requirement
Most of the streets here in Middletown, CT, have city water & sewer.  However, there are still a number of streets that the homeowners never hooked-up to the city water & sewer, and continue to be on wells and/or septic systems.  Because these homeowners have never hooked-up to the city water & sewer, Buyers who later want to purchase the property with FHA financing run into a problem.  The problem is with the FHA City Water And Sewer Hook-Up Requirement.  FHA will require the Buyer to hook-up to the city water and sewer before the loan can close.  For many FHA Buyers this is a problem, because many FHA Buyers tend to have very little money for downpayment and Closing Costs, much less money  to hook-up to the city water and sewer.
FHA recognizes this, and therefore, will make an exception.  If the cost to hook-up to the city water and sewer exceeds 3% of the selling price, FHA will allow for a hardship waver.  The Buyer will be required to obtain quotes from a licensed plumber or a General Contractor that is licensed to that that type of work, and if the quotes exceed 3% of the selling price, FHA ... more

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