Home Loans For Well And Septic Homes
Homes with a private well or septic system can qualify on FHA, Fannie Mae, and at least one VA program. Expect rules on water testing, distances, and signs of septic failure.
What the home may need
Each item below is a rule of Fannie Mae, FHA, or at least one other program we offer.
- On FHA, a water test when required, collected by a third party and no more than 180 days old at disbursement.
- On FHA, for an existing home, at least 50 feet between the well and the septic tank and 100 feet to the drain field, or 75 feet if local rules allow.
- On FHA, an existing well that delivers a continuous flow of at least three gallons per minute.
- On FHA, a recorded shared well agreement if the well serves more than one home, up to four.
- On Fannie Mae, a legally binding access and maintenance agreement if the well or septic is off the property.
- On FHA, an appraiser check of the septic system, with repair or an inspection if signs of failure are seen.
Wells and septic are eligible
Water testing rules
Distance rules
Shared wells can work
Septic signs of failure
Repairs can be financed
Can You Get A Mortgage On A Home With A Well
Yes. When public water or sewer is not available, Fannie Mae expects community or private well and septic systems to serve the home.
Fannie Mae requires community or private well and septic facilities when public water and sewer are not available, and the owners must have the right to access them, which must stay viable on an ongoing basis. FHA accepts existing onsite systems when connecting to a public or community system is not feasible at a reasonable cost, as long as they work properly and meet local health department requirements.
FHA requires a well water test in certain cases, including new construction and when the appraiser reports a problem with the well or water. A third party must collect the sample, never the buyer or owner, and the report can be no more than 180 days old. The water quality must meet the rules of the local health authority. Planning repairs? See our FHA 203(k) renovation page.
For septic, the FHA appraiser looks for signs of failure and requires an inspection when they are readily observable. At least one VA program requires a septic inspection on new construction, when there is a sign of a problem, or in areas known for soil percolation problems. FHA does not accept water from springs, lakes, rivers, sand-point wells, artesian wells, or a mechanical chlorinator.
Why choose Saxton for a home with a well or septic
For buyers and owners of homes served by a private well, a shared well, or a septic system.
Wells And Septic Are Eligible
FHA, Fannie Mae, and at least one VA program finance homes with a private well or septic system when the program conditions are met.
Water Testing Rules
FHA requires a well test in cases like new construction or reported problems, and at least one VA program requires a well inspection on every VA loan type except IRRRLs.
Distance Rules
For an existing home on FHA, the well must be 50 feet from the septic tank, 100 feet from the drain field, and 10 feet from a property line next to a road or nonresidential land. Local rules win when they require more.
Shared Wells Can Work
FHA allows a shared well serving no more than four homes that cannot feasibly connect to public or community water, with a recorded agreement that binds future owners.
Septic Signs Of Failure
The FHA appraiser checks the septic system for signs of failure and requires an inspection if they are readily observable. If the septic is not enough and an off-site sewer is available, FHA requires connecting to it.
Repairs Can Be Financed
FHA 203(k) can pay for installing or repairing wells and septic systems, and at least one USDA repair program covers septic and water well work.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying or refinancing a home with a well or septic.
It depends on the program. FHA requires one in certain cases, including new construction and reported well problems, and at least one VA program requires a well inspection on every VA loan type except IRRRLs.
On FHA, a third party. The buyer, owner, or any other interested party may never collect or transport the sample.
On FHA, for an existing home, 50 feet from the septic tank and 100 feet from the drain field, or 75 feet if local rules allow. Local rules win when they require more distance.
Yes. FHA allows a shared well serving no more than four homes that cannot feasibly connect to public or community water, with a recorded shared well agreement, and Fannie Mae allows off-site facilities with a legally binding access and maintenance agreement.
On FHA, when the appraiser sees signs the system is failing. At least one VA program also requires one on new construction or in areas known for soil percolation problems.
FHA allows one with a service contract, a plan approved by the local or state health authority, and an escrow account, among other conditions. At least one VA program does not allow a system that is required to make the water safe, though systems for taste or softness are fine.
On FHA, when no off-site system is available, the home must be rejected unless the septic is repaired or replaced to local health department standards. An FHA 203(k) loan can include septic repairs.
Find out what you qualify for
Tell us about the home and its water and septic setup, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.