Water Quality Requirements

A USDA Home Loan requires that all private wells must meet local and State requirements.  A USDA Home Loan requires the property to have safe and adequate water.  The water system must be approved by a State or Local Government agency.  When the property has a private well system then it must meet the requirements of the State Department of Health.  Written verification must be obtained showing the water complies with the Safe Drinking Water Act and the Clean Water Act.

The present requirements for Safe Drinking Water needed for a USDA Loan:

* only one test needs to be performed for nitrates; however, a laboratory can report the results of its nitrate testing in either of the ways listed.

Testing of Well Water

It is a good practice to test your well water each year. A basic test will let you know if a problem exists. Testing more than once a year may be warranted if:

• Someone in the house is pregnant or nursing
• A neighbor finds contaminants in their well water
• Unexplained illness in the family
• You notice a change in water taste, color, or clarity
• You replace or repair any part of the well system

Most County Health Departments will do a test for your personal use free of charge.  There is a slight charge for a well test for mortgage purposes.  Before taking a water sample, contact the lab for any special instructions.

Maintaining an Existing Well

Good well maintenance means testing your well water approximately once a year. You should keep the well area clean and accessible, keep all pollutants as far away as possible, and have a licensed well driller check the well if problems are suspected. If you house has a septic as well, you need to keep it in good operating condition to keep the septic from possibly contaminating the well water.

Preventing Backflow

You should install anti-backflow devices on all your faucets with hose connections in and outside your home. Otherwise, contaminated water from a laundry tub, sink, washing machine, or pressure washer could flow back through the plumbing to contaminate your drinking water supply.

Disinfecting the Well

For every 100 gallons of water in the well, use 3 cups of liquid laundry bleach. Mix the bleach with approximately 10 gallons of water. Turn off the pump circuit breaker before removing the well cap. Pour the solution into the well. If you have a water softener this is a good time to disinfect it as well. Turn on the pump. Connect a clean garden hose and run water for about 10 minutes. Turn off the pump, put the hose into the top of the well casing, turn on the pump, re-circulate water for about 2 hours. Then open up all other water faucets in the house (faucet aerators may need to be removed to keep from clogging), until you smell chlorine, then close then shut them off. After 24 hours open all the faucets again and continue to run until you no longer smell chlorine and taste disappears.

For more information on your drinking water:

The following sites provide information on steps you can take as a private well owner:

The Groundwater Foundation

U.S. Environmental Protection Agency

American Groundwater Trust

National Ground Water Association

Related posts from Indiana's USDA Home Loan Expert:

1. Minimum Property Requirements for a USDA Home Loan
2. What Goes On At Loan Closing
3. The Benefits of a USDA Guaranteed Loan to Purchase

Why is Mold Testing Necessary?
Testing for mold is important because mold spores can cause or aggravate many illnesses, including asthma and allergies. Some molds can cause very serious lung infections.

When should Testing Take Place?
Mold testing should be done if anyone in the household is feeling effects associated with fungal contamination. Symptoms include headaches, dizziness, difficulty paying attention, and lack of concentration.

What should I Look for?

The following are signs that mold could be growing in your home and needs to be eradicated:

1. High humidity – areas that are prone to high levels of humidity retain moisture for longer amounts of time, fostering mold growth.
2. Pipe or water leaks – surfaces that are consistently wet provide a home for mold, and leaks can be difficult to detect
3. Flooding – large scale water damage to a home is very conducive to mold growth
4. Musty, moldy odors – odors are a good indication that mold is present
5. Increased respiratory problems or allergies – a Mayo Clinic study, completed in 1999, found that most chronic sinus problems were caused by mold in the home
6. Symptoms of toxic poisoning – signs that family members are being affected include dizziness, headaches, and difficulty concentrating and maintaining an attention span
7. Leaky Roof – the attic will show signs of water damage
8. Damp basement or crawlspace – moisture in dark environments encourages mold growth
9. Rusting or condensation – can be signs of a leak
10. Discoloration or water stains on walls – water stains will indicate locations of leaks, while discolored spots may indicate locations of mold
11. Peeling paint – the mold could have had a chance to grow before the wall was painted, causing the current peeling
12. Warped wood – this is a sign that moisture is present in sufficient levels to allow mold to grow
13. Growth of mold in bathroom tile areas – this is a very good indication that mold is growing in other areas of the house
14. Visible mold growth – indicates a strong presence of mold elsewhere in the house
15. Poor ventilation – if moisture from the home, including appliances, isn’t vented, it can facilitate mold growth
16. Wet materials inside the house – any areas of carpet or flooring that are wet frequently can also house mold.

While being unsightly and sometimes difficult to clean, mold should be removed from the home. It causes damage to the home itself, but the most intense effects are upon humans. Breathing mold spores can be very dangerous, especially for the very young or those who are advanced in years or adults with compromised immune systems. If you locate any of these signs in your home, it’s time to conduct testing for mold to see how extensive the problem has grown.

To get my FREE 48 page eBook titled “Understanding Mold” . Simply fill out the form below, and I’ll rush it to you.

Related posts from Indiana's USDA Home Loan Expert:

1. Minimum Property Requirements for a USDA Home Loan
2. Private Well and USDA Home Loan
3. REO Properties and USDA Loans

flickr photo by Josh Hill

Any home that will utilize a USDA Home Loan must meet minimum property requirements (MPR), these are the same requirements utilized by FHA.  The MPR is referred to as the 3s’s, Safety, Security, and Soundness.  The requirements differentiate between minor and major.  A minor item is not something that would keep the house from meeting the requirements.  Some examples of minor items:  a hole in a window screen, cracked glass, worn floors, or a minor plumbing leak.  Some major items:  foundation damage, worn out roof (3 or more layers of shingles), faulty mechanical system.

When you are looking at a homes keep these items in mind, so you’ll know if the property will meet USDA minimum property requirements.

This list is for reference only and does not guarantee compliance with FHA Minimum Property Requirements.  Minimum Property Requirements are to insure the health and safety of the occupants and/or the marketability of the property.

The basic requirement is that the property be free of all known hazards and adverse conditions that:

• may affect the health and safety of the occupants
• may affect the structural soundness of the house
• may impair the use and enjoyment of the house

FHA Existing Property Condition Screening Checklist

Site Hazards And Nuisances
Presence of the following may indicate unacceptable property condition:

• Sinkholes
• Active or planned gas-drilling within 300 feet
• Within 75 feet of operating oil/gas well with no visible mitigation measures
• Abandoned oil or gas well within 10 feet
• Slush pits
• Excessive noise or hazard from heavy traffic area
• Dwelling or improvements within 10 feet of easement for high-pressure gas or petroleum line
• Dwelling or improvements within fall distance for overhead towers (high-voltage, radio/TV, cell phone etc)
• Excessive smoke, fumes, offensive noises, or odors
• Stationary storage tanks with more than 1000 gallons of flammable or explosive material

Wood Destroying Insects
Presence of the following will require a termite inspection and treatment if infestation is present:

• Structure is ground level and wood is touching ground
• House or other structure show obvious evidence of infestation
• Local jurisdiction requires inspection
• Inspection is customary to the area

Soil Contamination
Presence of the following may indicate unacceptable property condition:

• Surface evidence of underground storage tank
• Proximity to dumps, landfills, industrial sites that could contain hazardous materials
• Presence of pools of liquid, pits, ponds, lagoons, stained soils or pavement

Grading And Drainage
Presence of the following may indicate unacceptable property condition:

• Grading does not provide drainage away from structure
• Standing water near structure

Individual Water And Sewage Systems
Presence of the following may indicate unacceptable property condition:

• Private sewage system shows evidence of system failure
• Property lacks connection to public water (you’ll need to get a water test to ensure water quality meets public health requirements)
• Separation between well and septic drain field less than 100 ft (75 feet may be acceptable if local authorities allow.)
• Separation between well and property line is less than 10 feet (If local authority requires greater distance that requirement must be met.)

Private Road Access
Presence of the following may indicate unacceptable property condition:

• Property inaccessible by foot or vehicle
• Property accessible only by private road without permanent recorded easement

Floor Support Systems
Presence of the following may indicate unacceptable property condition:

• Significant cracks
• Evidence of water damage
• Evidence of spongy/weak/rotted flooring

Framing/Walls/Ceiling
Presence of the following may indicate unacceptable property condition:

• Significant cracks
• Visible holes in exposed areas that could affect structure
• Damaged plaster, sheetrock, or ceiling materials in homes constructed before 1978
• Significant water damage

Attic
Presence of the following may indicate unacceptable property condition:

• Inadequate access
• Evidence of holes
• Support structure damaged
• Significant water damage visible from interior
• No ventilation by vent fan or window

Basement
Presence of the following may indicate unacceptable property condition:

• Blocked or inadequate access
• Evidence of significant water damage
• Significant cracks or erosion in exposed areas that affect structural soundness

Crawl Space
Presence of the following may indicate unacceptable property condition:

• Blocked or inadequate access
• Space inadequate for maintenance (recommended 18 inches)
• Support beams not intact
• Excessive dampness or ponding of water

Slab
Presence of the following may indicate unacceptable property condition:

• Significant cracks that could affect structural soundness

Roof
Presence of the following will require a roof inspection and possible repair:

• Missing tiles, shingles, flashing etc
• Holes
• Signs of leakage

Furnace/Heating System
Presence of the following may indicate unacceptable property condition:

• Unit does not turn on
• Heat is not emitted
• Unusual noise
• Smoke or irregular smell
• Significant holes or deterioration in unit

Central Air Conditioning
Presence of the following may indicate unacceptable property condition:

• Unit does not turn on
• Cool air is not emitted
• Unusual noise
• Smoke or irregular smell
• Significant holes or deterioration in unit

Electrical System
Presence of the following may indicate unacceptable property condition:

• Electrical switches don’t work
• Outlets don’t work
• Presence of smoke or sparks from outlet
• Exposed frayed or unconnected wiring

Plumbing System
Presence of the following may indicate unacceptable property condition:

• Significant drop or limitation in water pressure
• No hot water
• Toilets don’t function or have been removed
• Toilet leaks
• Sinks/bathtub/shower leaks (very minor leaks may be acceptable)
• Sinks/bathtub/shower does not work or have been removed
• Swimming pools not operational, in bad repair or not maintained

Paint
Presence of the following may indicate unacceptable property condition:

• Chipped peeled or peeling paint on interior or exterior of home and/or structures and improvements if home built before 1978
• Chipped or peeling paint on exterior surfaces if finish is unprotected (ie, bare woods) if home built after 1978

Other
Presence of the following may indicate unacceptable property condition:

• Missing or inoperable exterior doors
• Broken or missing stairs
• Absence of built-in appliances
• Absence of free-standing stove

Related posts from Indiana's USDA Home Loan Expert:

1. Private Well and USDA Home Loan
2. Using a USDA Loan to Purchase a Home After a Foreclosure
3. 16 Signs of Mold

A home inspection will look at the systems that make up the building such as:

• Structural elements, foundation, framing etc
• Plumbing systems
• Roofing
• Electrical systems
• Cosmetic condition, paint, siding etc

If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you aren’t comfortable with what he finds, you should kill the deal.

Likewise, if you are selling a home, you want to know about such potential hidden problems before your house goes on the market. Almost all contracts include the condition that the contract is contingent upon completion of a satisfactory inspection. And most buyers are going to insist that the inspection be a professional home inspection, usually by an inspector they hire. If the buyer’s inspector finds a problem, it can cause the buyer to get cold feet and the deal can often fall through. At best, surprise problems uncovered by the buyer’s inspector will cause delays in closing, and usually you will have to pay for repairs at the last minute, or take a lower price on your home.

It’s better to pay for your own inspection before putting your home on the market. Find out about any hidden problems and correct them in advance. Otherwise, you can count on the buyer’s inspector finding them, at the worst possible time. Old Man Winter is settling in for a long chilly season. Before the temperatures dip too far south, follow these simple guidelines to winterize your home and save money on utilities.

Inside Your Home

• Have your furnace system serviced to ensure it’s working efficiently and not emitting carbon monoxide.
• Clean permanent furnace filters and replace paper or disposable filters.
• Replace the batteries in smoke and carbon monoxide detectors.
• If you have a wood stove or fireplace, have your chimney swept thoroughly. It should be cleaned before the soot build up reaches one-fourth inch thickness inside the chimney flue.
• Check your hot water heater for leaks and maintain proper temperature setting (120 degrees recommended by Department of Energy). On older water heaters with less insulation, for every 10 degrees Fahrenheit you lower the temperature, you save 6 percent of your water heating energy.
• Check the attic to see if insulation needs to be added or replaced. This is the most significant area of heat loss in many homes, so it is also important to see that it has proper ventilation. Inadequate ventilation could lead to premature deterioration of the insulation materials. You may also need to check insulation in exterior walls, crawl spaces and along foundation walls.
• Check all windows and doors for air leaks. Install storm windows and putty, caulk or add weather stripping as needed.
• Check basement and cellars for seal cracks or leaks in walls and floor.
• Make sure all vents are clean and operating properly.
• Clean and vacuum baseboard heaters, heating ducts and vents.
• Remove or winterize air conditioning units.

Outside Your Home

• Store or cover outdoor furniture, toys and grill.
• Purchase rock salt for melting snow and a shovel or snow blower if you don’t already have one. Make sure you have the right kind of gas and oil on hand for your snow blower in the case of an unexpected snowstorm.
• Caulk joints and minor cracks on exterior walls and siding.
• Look for deteriorating finishes. Minor problems can be patched to preserve the wood. Put bigger jobs, such as scraping and refinishing painted or stained areas, on the calendar for next spring or early summer.
• Drain and shut off sprinkler systems and other exterior water lines to avoid frozen and broken pipes. Leave all taps slightly open.
• Insulate exterior spigots and other pipes that are subject to freezing but can’t be drained or shut off.
• Rake and compost leaves and garden debris, or put out for yard-waste pickup.
• Clean storm drains, gutters and other drain pipes.
• Check the foundation for proper drainage. To do this, spray yard with a hose to see if water runs away from the house. A little shoveling to reshape the earth next to the house may make the water run away from the foundation.
• Make sure dirt or piles of wood don’t come into contact with or touch siding, inviting termites and carpenter ants into the house.
• Seal driveway and walkway cracks, if needed, before ground freezes regularly.
• Inspect the roof for loose, damaged or missing pieces.
• Check attic vent openings for nests or other blockages.

Related posts from Indiana's USDA Home Loan Expert:

1. Minimum Property Requirements for a USDA Home Loan
2. Private Well and USDA Home Loan
3. 16 Signs of Mold

Each State and U.S. territory was allowed to design its own rebate program, and all 56 have submitted plans to the U.S. Department of Energy. Indiana’s received more than $6.1 million for this program.  Every State got it’s own taste of the action for this program, you can find information for your State at the U.S. Department of Energy Website.

Indiana Energy Star Appliance Rebate Program

The U.S. Department of Energy approved Indiana’s Energy applicant Rebate Program on December 02, 2009. The rebate program states that it will help Indiana Home Owners buy an Energy Star HVAC system, lower utility costs and benefit Indiana manufacturing business, WaterFurnace, as well as other business by stimulating the sale of Energy Star rated HVAC systems.  Visit the Energy Star website for a list of qualified heating and cooling systems.

Brandon Seitz, Director of OED said,

Consumers can save more money and more energy by replacing a furnace than any other appliance in their home.  And it’s the only appliance where replacing an older or worn out unit is also a safety issue.

There will be five residential appliances that qualify for Indiana’s ENERGY STAR Appliance Rebate Program:

1. Furnaces
2. Boiler
3. Central Air Conditioner
4. Air Source Heat pump
5. Geothermal heat pump

Is It Time For A New HVAC In Your Home

Indiana’s program will run from February 01, 2010 until funds run out.  To qualify for the rebate the ENERGY STAR appliance must be purchased and installed after February 01, 2010, in a Single Family home you own. There are no retroactive rebates.

So, if you’ve been thinking you need to replace your heating system, or the houses you’ve been looking at to purchase look like they need a new heating system, plan on buying the HVAC system after February 01, 2010 so that you can get a check back from President Obama!

Indiana Energy Star Appliance Information

The rebate will be $500 for the documented purchase of a conventional Energy Star HVAC system, or $1,000 for a geothermal heat pump.

The rebate application will be a paper application to be mailed in along with the original purchase receipt. The rebate form will be available on the Indiana Office of Energy Development (OED) website prior to the start of the program.  Important Note: rebates are on a first come first serve basis as long as the money lasts, so plan on buying early!

Give me a call so we can discuss your mortgage options.

Related posts from Indiana's USDA Home Loan Expert:

1. The Benefits of a USDA Guaranteed Loan to Purchase
2. Private Well and USDA Home Loan
3. The Ides of March: USDA Just About Out of Funds