Monthly Archives: April 2011

If you have well and septic, could FHA force you to hook up to public utilities?

It was brought to my attention by Allan Tayman, a mortgage lender with C & F Mortgage who is working on an FHA buyer on one of my listings that is under contract and discovered something a bit unsettling. Because the home which is currently on well and septic is located in a public water and sewer district, FHA stipulates that the seller must hook up to public utilities if the total cost of the hookup is less than 3% of the sale price. Luckily it isn’t. But if it were less, it would have cost the whole deal.

It may be good to check this out in advance if you have listings on well and septic just to be sure this doesn’t happen to you.