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Conventional Loan Water Test Requirements
Conventional loans have water test requirements. Who knows what those requirements are? Does every home need a water test? What does the coventional loan water test cost?
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Conventional loans, which are mortgages that the government does not insure, often require a water test, especially for homes that have a well or non-municipal water source. Here are some key points about the water test requirements for conventional loans:
When is a water test required? A water test is typically required if the home being purchased has a well or other non-public water source, such as a cistern or spring. It ensures the water is safe for drinking and household use.
What does the water test check for? It checks for contaminants like bacteria, lead, nitrates/nitrites, and other harmful substances. It also evaluates the water’s potability and safety. Is a water test needed for homes on municipal/city water? Usually no. Homes connected to a municipal/city water supply that is regularly tested and treated generally do not need a separate water test for a conventional loan.
Cost of the water test: The cost can vary based on location, but a basic potability water test typically costs $100-$300 on average. More comprehensive tests for additional contaminants can be $300-$500 or more.
Who pays for the water test? In most cases, the home buyer or borrower is responsible for covering the cost of the required water test as part of their closing costs.
In summary, while not every home needs a water test, conventional loans are generally required if the property has a private well or non-municipal water source to ensure safe drinking water for the homeowners