FHA Loan Water Testing Requirements: What Homebuyers Need to Know
When applying for a FHA loan to buy a new home, a water quality assessment is often part of the approval process. But why is this, and how do you get your water tested?
Why do FHA Loans Require Water Testing?
An FHA (Federal Housing Administration) loan is a mortgage that is insured by the government that’s designed to help low to moderate income families. It’s specifically designed to help people buy their first home by offering less strict terms and using lower down payments, as well as lower credit score requirements.
Part of getting an FHA loan is by meeting FHA’s Minimum Property Requirements (MPR), including water quality testing. These requirements cover several safety factors like having property electrical work, proper roofing to prevent mold, and safe water.
If a home is on a private well or any non-public water source, then water quality testing will be part of the process.
Most of the factors that an FHA loan looks for would be covered in a typical home inspection. But for a conventional loan there is more room for negotiation, while FHA loans follow these stricter guidelines.
Protects the Lender:
These minimum property requirements such as water quality testing are in place to protect the lender. This is because when someone takes on an FHA Loan to purchase a home, their new home is collateral. Meaning if they stop making payments, the bank may take back the home in a process called foreclosure.
If this happens, the bank wants to ensure that it is getting a home worth the value of the loan and not going to be losing money. If the borrower had a $200,000 loan on a house that was supposed to be valued at approximately $200,000. But it’s later revealed that the house has severe structural damage totaling $80,000 in repairs, the house may only be worth $120,000 or less. Meaning the bank lost money.
Because FHA loans are backed by the government, this risk is largely passed onto the government. The banks carry less risk than a conventional loan and would be more likely to accept high-risk loans. So, the FHA has guidelines like the minimum property requirements and appraisals in place to ensure that the loans are high value.
Protects the Borrower:
Because FHA loans specifically target lower to middle income households, as well as first time homebuyers, it’s important that the homes that are being purchased are safe. The FHA requires that the water is safe for drinking, cooking, and cleaning.
The FHA Minimum Property Requirements also test for contaminants like bacteria, nitrates, nitrites, and lead. Ensuring that the water is safe for the new homeowners.
How to Test Water for an FHA Loan
When water testing for an FHA Loan, it’s important to use an EPA-Certified Laboratory that has excellent customer service, quick turnaround times, and fast reporting. You do not want to lose the home because of a failed inspection or administrative issues with your water testing.
The Safe Home Pro Inspector Drinking Water Test Kit is specifically designed to meet EPA guidelines to meet the requirements for FHA, VA, and HUD inspections.
The Pro Inspector Test Kit will test for:
- Total Coliform
- coli
- Nitrate-N
- Nitrite-N
- Arsenic
- Copper
- Lead
With this test kit, the home inspector will collect the water at your home, and then mail it to our EPA-Certified laboratory for testing.
If harmful Bacteria is detected, you’ll be notified within 4 hours of test completion, and you will receive your lab report within 3-5 business days after the lab receives your kit. If you have any questions about your results, we have in-house customer support who would be happy to help.
