Investor · North Central Montana · Member since 2018 · 40 posts · 17 votes
I am looking at a property in my small hometown. It has city sewer but the water is on a well with the pump and pressure tank in the basement. Someone told me this may affect the ability to finance the house. Anyone have any experience with this. I will be calling my banker tomorrow but thought I would ask you all. I am not sure why it would matter
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Josh VanSetten I don't see why having a well would be an issue for financing. I have sold properties that have wells before, and there were no issues. Although they are not common in my area, if you go far enough into the burbs or more rural areas you can still find large swaths of the country who use wells.
Investor · North Central Montana · Member since 2018 · 40 posts · 17 votes
6y
@John Warren, thanks for the reply. My banker said that if the loan goes on the secondary market, it would perhaps be an issue. We are using commercial loans to finance properties so we have a little more flexibility. I really appreciate your input.
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
Hmmm, not sure why this would be an issue but I had an insurer refuse to quote our home once because we had chickens. (it was a rural area zoned Agricultural/Residential.)
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
6y
Odd that a banker would suggest you wouldn't get a loan on a house that HAS running water. My buddy bought an old farmhouse that was sharing a well with the neighbor. Both houses were in foreclosure and he cut the well off to the neighbor. The HUD couldn't sell it without a well, which is what my buddy wanted. The HUD had to get a new well drilled before they could sell it...which gave my buddy the time to buy it - his plan all along.
Are you sure they said it might be a problem with a well? I think the other way around.
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
The suggested problem was an issue with the well tank "in the basement". I grew up in a house like this and am not sure what the "risk" would be. In colder climates that was a common solution to freezing issues.
Investor · North Central Montana · Member since 2018 · 40 posts · 17 votes
6y
I think it may have been an issue since the well (Sandpoint) itself was in the basement rather than a cased well outside the house somewhere. No matter we did enter into buy sell on this one. Waiting for title work to be done.