Septic Tank and Water Well Financing for Rural Homeowners

If your septic system has failed or your well has gone dry, Communities Unlimited has septic system financing up to $15,000 at a 1% fixed rate, with up to 20 years to pay it back. It covers repairing or replacing a household septic system or water well at a home you already own. The money comes through a U.S. Department of Agriculture program, so there is an income limit, and it is worth checking that first.

A 1% rate is not a promotion. CU is a Community Development Financial Institution, or CDFI, which means we lend where banks usually will not, and our loans for septic systems are funded by USDA to reach rural households that cannot cover a $12,000 septic replacement out of pocket.

Most financing for septic systems and water wells is a personal loan somewhere between 8% and 36%. This is not that.

Individuals in the Communities Unlimited and Midwest Assistance Program service areas are eligible to apply for the septic & well loan program.

Eligible states: Alabama, Arkansas, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, and Wyoming

Four rules, and all four have to be true.

1. Your home is in a rural community of 50,000 people or fewer.
   Most of the towns CU works in are well under that. If you are not sure, ask us.
2. You own and live in the home, or you are in the process of buying it.
   Renters are not eligible for this program. If you rent, call us anyway, there may be another
   route.
3. The work is on an existing home, not new construction.
   You can put in a brand-new septic system or drill a brand-new well. What you cannot do is use
   this loan for a house that is still being built.
4. Your household income is at or under 60% of your state’s median non-metropolitan household
   income.
   USDA sets the limit, not CU, and it counts the income of everyone living in the home who is over 18. The dollar figure is
   different in every state.

Add up the income of everyone in the home who is over 18. If the total is at or under the limit for your state, you qualify on income.

Close to the line? Call us at (479) 443-2700 before you rule yourself out.

Septic work:

• Replacing a failed septic tank
• Replacing or repairing a drain field
• Repairing a system that is backing up or surfacing
• Installing a septic system at a home that has never had one
• Pumping, inspection and permit costs tied to the work

Well work:

• Drilling a new household water well
• Deepening or re-drilling a well that has gone dry
• Replacing a failed pump, pressure tank or well casing
• Repairing a well that has tested unsafe

The same loan covers wells. If you searched for water well financing or well drilling financing and landed on lender comparison pages, this is the low-rate option those pages leave out. Up to $15,000 at 1% covers most household well work outright, including a full re-drill in most of the states we lend in.

If you are not sure whether your well needs repair or replacement, CU checks wells and septic systems at no charge in Alabama, Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee and Texas. There is no income limit on the check.

1. Check the income limit for your state in the table above.
2. Send us your name, phone and state using the form on this page.
3. We call you. Alexandria Cordero is the loan officer for this program. She will walk through what your system needs and what documents to gather.
4. Send in income verification and a bid for the work. A contractor’s written estimate is what sets the loan amount.
5. Close and schedule the work.

The income limit on this program is set by USDA and CU cannot waive it. If you are over the line, you are not out of options.

1. USDA Section 504 Home Repair loans and grants. Loans for rural homeowners with income under 50% of area median, and grants for homeowners 62 and older. Different program, different limits, and septic and well work qualifies. Start with your state’s USDA Rural Development office.
2. Your state health department or county environmental office. Several states run their own septic repair or replacement funds, and some counties have grant money for failing systems that threaten groundwater.
3. Your state’s Clean Water State Revolving Fund. A handful of states pass this money down to homeowners for decentralized septic work through a local sponsor.
4. CU’s other lending. If your income is above the USDA limit, we may still be able to lend for home repairs through a different CU program. Ask.
5. The free well and septic check, regardless of income. In our seven states, we will look at your system at no charge and tell you honestly what it needs. That report is what a contractor bid and any funding application gets built on.

Not sure where to start? Call us at (479) 443-2700. Pointing people to the right money is part of the work, whether or not the loan comes from us.

In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating based on race, color, national origin, sex, age, or disability. Submit a complaint of discrimination, by mail to U.S. Department of the Treasury, Office of Civil Rights and Equal Employment Opportunity , 1500 Pennsylvania Ave. N.W., Washington, D.C. 20220, (202) 622-1160 (phone), (202) 622-0367 (fax), or email crcomplaints@treasury.gov (email).

Reasonable Modifications for Individuals with Disabilities

Reasonable modifications may be requested by emailing info@communitiesu.org or calling (479) 443-2700, or persons with speech or hearing impairment may call toll-free 1-800-877-0996 for service in English and Spanish.