Septic Systems And FHA Loans: A Reader Question

• the water supply relies upon a water purification system due to the presence of contaminates;
• corrosion of pipes (plumbing);
• areas of intensive agricultural uses within one quarter mile;
• coal mining or gas drilling operations within one quarter mile;
• a dump, junkyard, landfill, factory, gas station, or dry cleaning operation within one quarter mile; or
• an unusually objectionable taste, smell, or appearance of well water.”

Furthermore, HUD 4000.1 states, “The Appraiser must also be familiar with the minimum distance requirements between private wells and sources of pollution and, if discernible, comment on them.”

In general, fifty feet between septic and sewer seems to be the minimum distance as spelled out in HUD 4000.1. And the reader’s question about finding a workaround for this? The answer would seem to be “no”. FHA loan requirements don’t seem to include any exceptions in this area-especially since the reader’s question implies that there is no fixed date for the installation of a city or municipal water connection.

FHA loans require properties with deficiencies, including septic/well issues, to either have corrections made as a condition or loan approval, or to seek waivers where possible. The borrower would have to see if a waiver is permitted and work with the lender to explore this option where it is permitted. Not all conditions permit a waiver, but it never hurts to ask.

Is a waiver possible in this specific case? It would seem unlikely, but the answer may depend on circumstances, state law, building code, local precedents, etc.