Are Well And Septic Inspections Automatically Required For A Mortgage?

A frequent question I often get, especially in the more rural areas of Connecticut is Are Well And Septic Inspections Automatically Required For A Mortgage?  The quick and short answer is NO, Well & Sept inspections are not automatically required for a mortgage.  But that does not mean a Lender will not ask for one.

There are no Mortgage Programs I am aware of that will automatically require for a Well or Septic Inspection to be done when applying for a mortgage.  However, one maybe requested by a Lender based on the physical observation of an Appraiser at the time the appraisal is done, or based on sever weather conditions at the time of the purchase.

For example, if an Appraiser notes on the appraisal the ground around a Septic System is unusually wet, that could be a sign of a failing Septic System, so the Lender could very well ask for a Septic Inspection to be done.  Like wise if there has been sever weather conditions, and the ground around the well is unusually wet a Lender may require a Well Inspection even if the Appraiser does not bring attention to it in the appraisal.  One almost sure fire way for a Well Inspection to be required on a FHA Loan, is if the Well and Septic are less than 50'-0" apart as well as requiring a special exception from FHA for the distance.

Having said all this, regardless of whether or not a Well and/or Septic Inspection is requested by a Lender, if I were purchasing a property with a Well and/or Sept I would want an inspection done.  It is not uncommon for Wells and Septic Systems to fail, and to install a new one can be a very expensive expenditure.  Purchasing a property and then noticing the water looks or taste funny after moving in is not a surprise I want.  The same would be true for a Septic System, however, here if the Buyer was to have a Home Inspection done, the Home Inspector generally will run the water a fair length of time to test the Septic System.  But a Home Inspector is not a Septic Inspector, and may not notice something which is not obvious, which a Septic Inspector may identify.

Replacing a Well or Septic can cost thousands of dollars, while Well and Septic Inspections are only a few hundred dollars each.  For me the old saying "Penny wise and pound foolish" applies here.  I would say the same for a Home Inspection.  A Home Inspection is worth every penny a homebuyer pays.  Home Inspectors know what to look for, and have far more experience in identifying problems than a homebuyer, no matter how many houses they have bought.

Are Well And Septic Inspections Automatically Required For A Mortgage?  NO.  But is it a very wise investment to have one done, YES!

 

*******************************************************************************

 Info about the author:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com