Well Water Requirements for FHA Loans

December 21, 2016 By Chris Graves

If you are purchasing a home in Southern NH or certain communities in Eastern MA, you may be dealing with well water. When using an FHA loan to purchase homes, it’s important to be aware that the well and its water must meet certain requirements. Below is an overview of the well water requirement for FHA loans.

Water Flow Requirements

A water flow test must be performed. This can often be completed by your home inspector or a well inspector. Typically, it involves running the water in the home and measuring the pressure and volume. In order to meet FHA standards, the flow must be 3 to 5 gallons per minute. Anything lower than that implies an issue with the well.

Water Quality Standards

A water quality test must also be completed. This is done by gathering a sample of the water and submitting it for testing. Testing normally takes several days a generates a report indicating the chemicals present in the water. For communities with water quality standards, FHA requires that the water quality within the home meet those standards. If no community standards are available, then the water must meet published EPA standards.

Distance from Sources of Pollution

Issues with well water are often a result of being too close to sources of contamination. Therefore, FHA also sets minimum distance guidelines for the location of wells. For example, wells must be at least 10 feet away from property lines, 50 feet from septic tanks, and 100 feet from drain fields.

Additional Well Water Requirements for FHA Loans

Additional well water requirements for FHA loans apply to new construction homes. All water pipes must be lead free. Homes must be connected to public water systems whenever feasible, avoiding the entire well water issue entirely. Water flow standards are a bit higher, requiring 5 gallons or more per minute for a full four-hour period of time.

Whether you are purchasing a new home or an older one, be aware of these well water requirements for FHA loans. You will need to order a well inspection and well water quality test, at your own expense, when using an FHA loan. Consult with your loan officer on what reports must be submitted with your loan paperwork for approval.