Can you replace a septic system using the FHA Streamlined k? Woops, it was a trick question

Actually the answer is NO, a  big NO. You CAN however replace the septic system using the "FHA Standard or Full 203k" just not the Streamlined k yet I was just on the internet looking at some sites and found that there were several lenders telling the world you can use the Streamlined k for that repair or replacement. 

Septic systems are considered "structural" in nature and therefor don't qualify for a Streamlined repair or replacement. What are the consequences? If you are a full Eagle Lender with HUD you may not be long when you get caught. It isn't a question of whether or not this practice will be discovered only how long it will take to be discovered. Are you ready to buy back all those loans? Lender beware.

It is well known that Septic repairs and replacement are obvious repairs for the FHA 203k and HomeStyle Renovation loan programs just not the Streamlined k program due to the structural issue. Protect yourelf by using a full 203l lender when it comes to this repair or replacement. We replace and repair the them all the time under these programs and it is the obvious solution. 

To this day I don't know why HUD actually called me a couple years ago and shared that info over the phone. Don't know if they were telling all of the consultants or just me but it came right from the horse's mouth.