December 1, 2014
A reader asks, “A property has a well under the garage floor which is accessed through a steel covering. Is this acceptable if the Health Dept approves it?”
The answer to this question depends greatly on whether the well as described is acceptable under state or local building code. FHA loan minimum property requirements don’t overrule state and local building codes, so compliance with those codes would be required–in the appraisal process, if the appraiser notes a condition that does not comply with either FHA loan rules or state/local building codes, corrections may be required as a consition of loan approval.
When it comes to wells, FHA rules printed in HUD 4150.2 state: ” A domestic well must be a minimum of 50 feet from a septic tank, 100 feet from the septic tank’s drain field and a minimum of 10 feet from any property line.” Would the well described in this reader question meet this FHA requirement?
Furthermore, the FHA/HUD property analysis rules have a list of unacceptable conditions for wells that includes the following:
“The following water well conditions are unacceptable and must be noted in VC-4:
–mechanical chlorinators
–water flow that decreases noticeably when simultaneously running water in several plumbing fixtures (the well may not be able to provide a continuous, adequate supply of water)
–properties served by dug wells unless a complete survey conducted by an engineer was delivered to the lender and subsequently given to the appraiser
–properties served by springs, lakes, rivers or cisterns (3-6)”
Any well that has any of these conditions would require repairs, corrections or other actions required by the FHA appraiser, assuming these corrections are possible, and/or the condition does not render the home ineligible for an FHA loan.
Do you have questions about FHA loans? Ask us in the comments section. All comments are held for moderation.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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