FHA, HUD, VA, RD and USDA Requirements

 Why is Water Testing Required for Loans and Refinancing?

 For much the same reasons as roof inspections and termite inspection. To ensure the water provided to the site is safe for consumption and will not need costly repair or remediation. For financing and refinancing through the VA, FHA, USDA, or RD, water tests are required if the property is served by a private well. 

What if a Public Supply Serves My Property? 

If you are on a central water system (city water), you are not required to sample if you provide proof that the property is connected to a state regulated public water supply.

 What are the FHA Water Test Requirements for Private Wells? 

For properties that are served by wells, FHA loan rules say, “When an Individual Water Supply System is present, the Mortgagee must ensure that the water quality meets the requirements of the health authority with jurisdiction. If there are no local (or state) water quality standards, then water quality must meet the standards set by the EPA, as presented in the National Primary Drinking Water regulations in 40 CFR 141 and 142.” 

What are the VA Water Test Requirements for Private Wells? 

The VA doesn’t have a formal list of contaminants and requirements for private well water. Generally, well tests look for the presence of Nitrates, Nitrites, E-Coli, Coliform Bacteria and Lead.  What matters for the VA and lenders is that the well water meets local health requirements for safe drinking water. When there isn’t a local authority with set requirements, the water will need to meet federal standards set by the Environmental Protection Agency.