As long as the well meets VA standards for water quality and depth then it should not create an issue when you apply for the mortgage. Your appraiser may require additional documentation such as a water quality report or the permit that was issued when the well was drilled and constructed to confirm that the well meets VA guidelines. The VA wants to confirm that water from the well is potable and safe to use around the property.
If the well does not meet VA standards due to insufficient depth, poor water quality or a contamination source near the water supply you still may be able to qualify for the mortgage but you are required to take additional steps. In this scenario you are required to include the following additional documents in your loan application:
1) a letter from your local health department confirming the contamination;
2) evidence that water purification standards for the property have been met; and,
3) written acknowledgement that you understand that the water must be continuously treated to be considered safe for human consumption.
In short, the VA wants to make sure that you take the necessary precautions if you intend to use water from a well that does not meet its guidelines according to the findings in the appraisal, water quality or property inspection report.
Depending on the results of the appraisal or inspection, you may be required to fix any issues identified with the well before you receive final mortgage approval. In the worst case scenario, you may need to find an alternative water source if you cannot satisfy the applicable VA guidelines.
We provide a comprehensive VA Mortgage Program Guide including the qualification requirements for you to review.
Please note that some mortgage lenders apply their own requirements for properties with wells that go above and beyond the VA guidelines. They may require additional testing, documentation or a higher water quality standard. So if you are running into a challenge getting your loan approved due to the well, you need to determine if this issue is related to a lender guideline or VA guidelines.
If the issue is due to an extra lender requirement then you may be able find a new lender with different guidelines that approves your loan. If the issue you are dealing with relates to a VA policy then your loan will likely not be approved no matter what lender you use due to the well.
Your best approach to address any potential issue is to contact both your lender and the VA. Explain the situation directly to the VA and they should be able to tell you if the issue is on their end or with the lender. You can contact the VA at 844-872-4681.
You can also review VA lenders in your area on the table below. We advise you to contact multiple lenders as qualification requirements for properties with wells vary. Plus, shopping lenders is the best way to save money on your mortgage.