Understanding Real Estate: FHA/ VA Loans and Well & Septic Hookup

Many homes in the surrounding area still have a well and septic.  When purchasing one of these homes with a  FHA or VA loan it is a requirement to hookup to public services if they are available and the cost of the hookup is less than 3% of the sales price.  Often times, the costs of the hookup is between $3,000-$6,000.  

Photo Courtesy of UNC

Another case in which the hookup will be required regardless of the cost is if the well or septic system fails the inspection.  It is a good idea to get the proper documentation from the governing township early in the lending process so that closing is not delayed.  Your KW Selling Team agent will take care of this for you.