FHA Loan Articles
News, updates, and explanations to keep you informed.
VA Property Standards and Well Water
For those who want a VA mortgage on property in rural or remote areas, well water can be a big issue. Before you can be approved for a VA mortgage loan, the government requires an inspection or appraisal of the property to make sure it meets the VA minimum property requirements. Those requirements include a home that is free from fire hazards, fungus growth, leaks and other problems.
VA minimum property requirements also include being connected to an adequate water supply that is safe and drinkable. Do you know the VA guidelines that affect you when applying for VA home loan on property served by a well?
VA rules do allow you to buy land with a well as the primary water supply, but there are stipulations. According to the VA, the property must be connected to a public or community water system "whenever feasible," but you can have a well instead--provided the well and water meet local health authority requirements.
Some areas may not be governed by a local health authority, and in these cases the VA recognizes the authority of the EPA. Your well and well water must meet EPA standards and provide safe drinking water. But how do you determine what "safe" is when there's not a local government authority to certify a well?
In these cases, the well can be tested by a sanitary engineer or a commercial laboratory. Once the engineer or lab has certified the well, check with your loan officer about where to file the results.
When applying for your VA loan, the question of dug wells versus drilled wells may also 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.
The VA leaves the responsibility for a dug well to the borrower, but the water from such wells must meet testing requirements. If the water is found to be contaminated, you may need to do some additional negotiations or planning to correct the issue before you can be approved for the VA home loan.
FHA NEWS and RELATED ARTICLES
An FHA ARM loan can, for those who qualify, offer a lower introductory interest rate for at least one year, featuring interest rate adjustments specified over a period of time specified in the loan agreement.
When you apply for an FHA mortgage, you'll need to provide a set of required documents and paperwork that contains the information a lender needs to process your FHA home loan properly.
In August of 2012, the Federal Housing Administration revised its guidance to lenders regarding the verification of Social Security Income to qualify for FHA mortgages.
When you submit your application for an FHA-guaranteed mortgage, the lender is required to review your verifiable income, your debts and financial obligations, and determine your debt-to-income ratio.
You've found the right home, you've made the offer, and had your FHA mortgage loan application approved. The appraisal has been done, your closing date is set. What more does the buyer need to know about the process to be ready for the closing date?