FHA Private Well Requirements for Properties not Served by Public Water
In Rhode Island a very high proportion of homes are connected to an ever growing public water system. I also work with many buyers in Eastern Connecticut where public systems are much less prevalent. Conventional mortgages don't ask many questions about wells, but government mortgage programs, including Federal Housing Adminsitration (FHA) insured loans, have more stringent requirements. Appraisers evaluating properties for FHA mortgages are required by the FHA to evaluate the well's safety.
For FHA mortgages, certain guidelines have been established for safety reasons. The most commonly encountered requirements are recapped below. Wells must be located a minimum of:
- 100 feet from septic drain field
- 50 feet from septic tank
- 10 feet from property line
In addition, certain other environmental hazards must be considered, among them agricultural activity, dry cleaning businesses, and other potential sources of harmful contamination. There are few exceptions to these rules, so it is important for Realtors listing properties with wells to be aware of the particulars of the proprty in question.
I've seen situations in the past where it actually made sense for the seller to install a new well before listing the home. In one specific case, the property's well was located in the basement of the house, within the boundary of the foundation. Unfortunately, FHA does not allow an installation like that except in Arctic and sub-Arctic climates. It's been cold in Connecticut and Rhode Island this week, but not that cold!
A final factor that should be considered is the availability of public systems for connection. In most cases, if connection to public water is available, getting an FHA mortgage will require the property to be connected. There are some limitations to this. If the connection exceeds a certain distance, it could be waived; alternately if the cost of connection exceeds a certain threshold, usually 3% of the price of the property, connection can be waived.
For additional information about well requirements, you can review the offical FHA webpage, here.
Dan Hartman is a Senior Mortgage Advisor with Province Mortgage Associates, a residential mortgage broker serving Rhode Island, Massachusetts, Connecticut, and New Hampshire. He is happy to assist with any and all questions and can be reached by commenting on this article, or by phone at (401) 263-8655.
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