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FHA/VA What You Need to Know about Financing Rural Homes

Property Feature FHA Requirement
Test required only if local jurisdiction requires Well within home foundation only allowed in Artic and Sub-Arctic regions Connection to public water required if feasible ( suggested benchmark is 3% of sales price) 10-ft minimum separation between well and property line Shared wells require permanent recorded easement and maintenance agreement Cisterns allowed if customary and only feasible water source Dug wells require full engineering report Test required only if local jurisdiction mandates or there are signs of failure 100-ft minimum separation between well and septic drain field (75 if local authority allows) No maximum but lot must be typical for area Permanent easement required for private road Road must have all-weather surface-gravel allowed No active or planned drilling within 300 ft Cannot be within 75 feet if no visible mitigation measures No abandoned wells within 10 ft No guideline (but expect similar to VA)

VA Requirement
Test required at source; no treatment system allowed unless authority confirms that this is the only water source and contamination is mitigated through water purification system; veteran must acknowledge in writing Connection to public water required if feasible (no suggested benchmark) Shared wells require permanent recorded easement and maintenance agreement Cisterns allowed if customary and the only feasible water source

Well, Cistern, Shared Well

Test required

Individual Sewage System Acreage Road/Private Road Gas Well Drilling Oil/Gas Well Gas/Petroleum Pipelines High Voltage / Tower Lines

No maximum but lot must be typical for area Permanent easement and recorded maintenance agreement required for private road Road must have all-weather surface-gravel allowed No guideline (but expect similar to FHA) No guideline (but expect similar to FHA)

Cannot be within easement or fall distance

Storage Tanks Proximity to Landfills Heating – Solar & Wood Burning Stove

Cannot be more than 1000 gal if containing flammable material Underground tanks will be checked for surface evidence of leakage May require soil test Backup conventional heating system is required that maintains temp of 50 degrees in areas with plumbing; wood pellet stove acceptable if customary

220-yd separation between pipeline center and residence; special statements from pipeline company may allow less distance Cannot be within easement Detached improvements within easement will not receive value No guideline (but expect similar to FHA)

No guideline (but expect similar to FHA) Backup conventional heating system is required that maintains temp of 50 degrees in areas with plumbing

"The information provided has been based on rules and regulations issued by Federal Agencies and interpreted for you by MortgageCurrentcy.com. Interpretations are not guaranteed but we attempt to make them both easy to understand and help you sell more real estate. Check with your local and state authorities to ensure that you meet all requirements and disclosures."

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