June 3, 2020

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FHA Loans For Properties Served By Cisterns: A Reader Question

A reader asks, “How do we get a fha loan for homes on cisterns, They are common for our area 81082. Can they be certified and inspected and to what standard? and by who?”

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…

–mechanical chlorinators

–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.

Joe Wallace - Staff Writer

By Joe Wallace

February 13, 2015

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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