What are USDA loan well water testing requirements in Florida, Texas, Tennessee, or Alabama?

What are USDA loan water testing requirements for a private well in Florida, Texas, Tennessee, or Alabama?

So, what are the necessary steps to meet USDA loan well water testing requirements?  As you can imagine, this is a common question that I receive from both Realtors and homebuyers alike, and in today’s video I will break down the details so you will be in the know and help keep your transaction from falling off the tracks.

However, before we get started please take advantage of our second chance review service which helps you get access to an expert second opinion and works great for both new pre-qualifications and for those loans that have been recently denied.

What are USDA loan well water testing requirements in Florida, Texas, Tennessee, or Alabama?

When working in rural communities, private wells can be common and understanding the USDA loan well water testing requirements is an important step in the process.

USDA testing requirements for individual water systems that are owned and maintained by the homeowner, must meet the requirements of the local and/or State Health Authority codes.

USDA loan water testing requirements state the following for Individual Privately Owned water systems:

• The water quality of the well must meet the requirements of the state or local authority. If the state or local authority does not have specific requirements, the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply.
• The local health authority or a state certified laboratory must perform a water quality analysis. The Safe Water Drinking Act does not apply to private wells.
• The well location for individual water supply systems must be measured to establish the distance from the septic system. The separation distance between the well and septic systems must meet the SF Handbook (HUD Handbook 4000.1.) or be found acceptable by the local and/or State Health Authority.
• Individual water systems/wells should be located on the subject property site. If located on an adjacent property, evidence of water rights and recorded maintenance agreement must be retained in the lender’s permanent loan file as acceptance of the well as the primary source of water.

Additionally, USDA guidelines require the following for Individual Privately Owned Shared wells or off site facilities:

If the property is served by a shared well or off-site facility, the lender must ensure the private system will provide a continuous and adequate supply of safe and potable water. The following requirements must also be met:

• The well serves properties that cannot feasibly be connected to an acceptable public or community water supply system. It is the lender’s responsibility to make this determination.
• A shared well must have a valve on each dwelling.
• The water supply is adequate for all families served. A shared well must service no more than four living units or properties unless approved and enforced by the local code authority.
• The water quality of the well must meet the requirements of the state or local authority. If the state or local authority does not have specific requirements, the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply.
• The well must have an agreement that meets the following requirements:
  • Is binding upon all signatory parties and their successors in title;
  • Is recorded or will be recorded no later than the closing date; and
  • Makes provisions for maintenance and repair of the system and the sharing of costs to do so. These provisions must include a permanent easement that allows access for maintenance and repair.

While today’s post does not take into account all situations involving USDA loan well water testing requirements, it does provide a starting point to help with the process.

Remember, because we offer in-house underwriting and are known for our USDA experience, make sure to use my team as a resource and call if you have any specific questions about USDA loan well water testing requirements so we can review and advise.

As you know by now, USDA loans are in the blood of my entire team.  As an approved USDA lender Metroplex Mortgage Services is proud to serve our rural communities.

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our second chance review service which is great for both existing transactions & pre-qualifications.

(800) 806-9836 Ext. 280
SeanS@MPLX.org

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download the USDA Blueprint for Success HERE