Sewer Lateral Repairs and 203k Financing in Oakland and the East Bay Area

Mortgage and Lending with Caliber Home Loans NMLS# 242952

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Oakland, Ca. As you may know, in many cities, a sewer lateral inspection/repair is a requirement in every real estate purchase transaction. Specifically in Oakland after January 16, 2012 all homes purchased are now required to obtain a certificate of compliance from EBMUD. So what does this mean exactly?

The EPA among other agencies is requiring six East Bay cities and one sewer district to fix old, cracked sewer pipes to ensure they don't allow the infiltration of rainwater which can overwhelm water treatment facilities and pose a threat to public health.

When are property owners required to obtain a compliance certificate?

The ordinance specifies three conditions which require property owners to test and, if needed, repair or replace their private sewer laterals:

1. Prior to selling the property; or

2. When obtaining any permit for the construction or modification of the property estimated to be greater than $100,000; or

3. When increasing or decreasing EBMUD water service that requires a change in meter size.

When purchasing a bank owned home the cost of the inspection and repairs is not automatically paid by the seller a.k.a. the bank as in certain other real estate transactions. Typically banks really don’t want to pay for anything on REO transactions especially maintenance. Buyers can utilize a FHA 203k rehabilitation loan to finance the charges and thus avoid having to pay out of pocket up front for these repairs. The City of Oakland will allow the borrower to pay a $4500 deposit to the city, and after the close of escrow when the work has been completed the funds from the construction loan can be used to pay the bill and the borrowers will get their deposit money back.

For more information on the benefits of FHA 203k financing call 510-282-5456 or email Thanks you for watching, liking, forwarding and sharing!

Related links –

203K Full vs. Streamline

203K and Energy Efficiency

203K on Location:





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Garrick Werdmuller

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