HUD Loan Water Testing Requirements: What Homebuyers Need to Know
When applying for a HUD 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 HUD Loans Require Water Testing?
A HUD Loan is a mortgage program by the US Department of Housing and Urban Development (HUD) that are ensured by the Federal Housing Administration (FHA). These loans offer more flexibility on down payments, credit requirements, and insurance premiums. With the goal of making home ownership more accessible.
HUD’s Single-Family Mortgages require that the home meets certain Property Acceptability standards before the loan can be set up.
If the 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 is looking 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 HUD 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 HUD 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 HUD has guidelines like the minimum property requirements and appraisals in place to ensure that the loans are high value.
Protects the Borrower:
Because HUD loans specifically target lower income households, as well as first time homebuyers, it’s important that the homes that are being purchased are safe. The HUD requires that the water is safe for drinking, cooking, and cleaning.
The HUD 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 a HUD Loan
When water testing for an HUD 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
- E. 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.
