Tips & Special Topics
VA Property Standards and Well Water
Added March 15, 2010 | Updated April 22, 2010
For VA borrowers wishing to finance rural property in remote areas with a VA mortgage, well water can be a tricky topic. Before being approved for any VA mortgage loan, the federal government requires an appraisal and inspection of the property to assure that it meets the VA minimum property requirements. According to the U.S. Department of Veterans Affairs guidelines for VA loans, a home must be livable and free from fire hazards, fungus growth, leaks and other problems that could create unsafe living conditions.
Included in the VA home loan minimum property requirements is a stipulation that the property be connected to an adequate, safe and drinkable water supply. When a home is connected to a city water system, it’s easy to determine whether the water is safe since municipalities test their water regularly. But if a home is connected to well water, determining the water’s safety is a bit more specific.
There are water testing methods that can be performed by a sanitary engineer or commercial laboratory. The EPA recommends that well water be tested annually for nitrates and coliform bacteria. The lab that performs the test may suggest additional tests specific to the property or geographic area, such as:
• Testing for pesticides if the home is built on the site of an old orchard or farm.
• Testing for volatile organic chemicals if an oil tank is buried on the property, or if commercial storage tanks are buried nearby.
• Testing for lead if the home has lead pipes. Lead tests are important for homes with public water, too, since contamination occurs after the water enters the plumbing.
It’s possible that the results of a well water test may show contaminants that are offensive, but not hazardous to your health. The lab can advise about the differences between hazardous and non-hazardous contaminants, and their possible sources.
If a property’s primary water supply is a well, it does not prevent someone from financing with a VA loan solely on that fact. According to the VA loan guidelines, the property must be connected to a public or community water system "whenever feasible", but a VA borrower can have well water as long as the well and the water meet local health authority requirements.
VA requires that the well be tested for biological contaminants by a accredited lab. In some areas, the well can be tested by a sanitary engineer or a commercial laboratory rather than a local authority. Once the engineer or lab has certified the well's water as safe, the results must be filed with the other VA loan documents in order to proceed with financing. A VA mortgage professional can help with this.
In these cases, the well can be tested by a sanitary engineer or a commercial laboratory rather than a local authority. Once the engineer or lab has certified the well, the results must be filed with the other VA loan documents in order to proceed with financing. A VA mortgage professional can help with this.
When applying for a VA mortgage, the question of dug wells versus drilled wells may come up. According to the VA, there is no technical distinction (with regards to qualifying for a VA mortgage) between dug or drilled wells. Official VA loan guidelines do point out that dug wells can be more vulnerable to contamination in some cases, but if the well is placed in a good location, drinkable water can still be obtained. If the water is found to be contaminated, a borrower may need to do some additional negotiating with the seller to have the issue corrected before the loan can be approved for VA financing.
For questions about VA loans and well water contact a VA mortgage professional.
