clients with a well and septic that the surveyor is going to have to mark out and find where the well and septic are, and provide that information to underwriting or the loan won’t be approved. In case you’re curious, the well must be at least 50 feet away from the septic tank, and the tank must be at least 100 feet away from the drain field. You must make sure that there is adequate distance between those items, so the loan can be approved. Similarly, the FHA requires water tests if the borrower is looking to buy a house that uses a private well or a private water system. A water test is something that’s easy to do on your own, and can save a massive amount of time in the underwriting process. Your agent can do the test and then say, “Hey, this test doesn’t look right. We should start thinking about this issue now, even before the professional appraisal begins.” These are just a few of the things that I can tell simply by looking over the MLS sheet or the contract. When I take note of them, I’m going to let the agent know immediately so we can get the issues resolved in a timely manner. This is a much better strategy than calling at the last minute just before closing and telling the agent that there’s a water issue that has to be fixed, thus delaying the closing for another week. Don’t you agree?
VA Loan Program
The U.S. Department of Veterans Affairs (VA) provides a loan program for current and former military service veterans. Similar to an FHA loan, a VA loan is a mortgage loan backed by the VA. The program is for American veterans, military members currently serving, reservists, and select surviving spouses. However, officers who have been issued a dishonorable discharge are not eligible for the loan.
Loan proceeds can be used to purchase single-family homes,
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