USDA Loan Financing Testing Requirements - Water Test, Septic Certification, and Pest Inspection
Date: October 28, 2012Determining what type of tests is required when obtaining a USDA Purchase Loan is based on Rural Development Guidelines, appraiser comments, and lender overlays. Testing requirements are based on the following:
 | Rural Development Guidelines always will require a water test when the property is on well water. This test is to confirm with local water testing requirements. Often water testing companies will not know USDA specific guidelines. However, USDA Loan water testing requirements follow FHA water testing requirements, which water testing companies should be more familiar with. |
| A septic certification is not necessarily required by the local Rural Development Office. However, the investor funding the loan may require a septic certification. In addition, the appraiser can comment on the need of a septic certification. The primary reason an Appraiser will request a septic certification is to determine the distance between a well head and septic field, which must meet HUD standard requirement of 50 feet between well and septic, 100 feet from the drain field, and 10 feet from the property line. |
| A pest inspection is not necessary unless required by the local Rural Development Office. However, the investor funding the loan may require a pest inspection. In addition, the appraiser can comment that a pest inspection should be ordered based on their visual inspection of the property. |
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