This reader question comes in response in the comments section to an earlier post we wrote titled, FHA Loan Reader Questions: Cisterns which includes the following information:
“FHA loan rules state that a cistern–basically a water tank using the classic definition of the word–is unacceptable. However, in certain cases a waiver may be applied for in situations the FHA defines as those where cistern use is common.”
“Such waivers are not automatic and a borrower in need of such a waiver should call the FHA at 1-800 CALL FHA to learn how to apply, or discuss the matter with the loan officer.”
The FHA provides a list of unacceptable conditions related to such waivers–you’ll find the complete list written in HUD 4150.2. Here is a list of unacceptable conditions that would make a cistern waiver impossible:
“The following water well conditions are unacceptable and must be noted…
–water flow that decreases noticeably when simultaneously running water in several plumbing fixtures (the well may not be able to provide a continuous, adequate supply of water)
–properties served by dug wells unless a complete survey conducted by an engineer was delivered to the lender and subsequently given to the appraiser
–properties served by springs, lakes, rivers or cisterns”.”
As previously mentioned, any borrower who needs to know FHA requirements for a cistern waiver needs to contact the FHA directly at the number provided above.
Do you have questions about FHA home loans? Ask us in the comments section.