Saturday, November 16, 2013

Can I Replace a Failed Septic System with the 203k Loan Program?

Yes, but it must be a FULL or STANDARD 203k. This work would be considered "structural" and therefore should not be attempted with a streamlined k loan. Now that I have said that there is a major lender that says they have done hundreds of septic replacements all under the streamlined k program. This could bite the borrower as it doesn't then comply with the program guidelines.

I actually received a call from a HUD official instructing me to get the word out that this repair is ONLY available with the FULL or STANDARD 203k.

There are a lot of homes that have septic systems that have been sitting idle for a year and more that have dried out and no longer function, the REO managers either don't now it or do know it and should be disclosing it with a note that this is an FHA 203k candidate or FannieMae HomeStyle candidate due to the septic issue.

We have several replacements or repairs going on right now or in the past few months in Vacaville, Langunitas, Templeton, Sanger, and Visalia to name a few. Call us if we may be of assistance...

-Mike Young, 203k Team Leader

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

To learn more about the FHA 203k loan program go to To contact us for a consultation please go to and "order a consultation". If