Director of Renovation Lending
AnnieMac Home Mortgage
Call me if you would like to discuss this.
1.) Are you positive that replacing the system is necessary? If it was installed legally under guidelines that have changed since the installation, you may be "Grandfathered" and be able to repair rather tnan replace. Check with your municipality's "Sewage Enforcement Officer" to find out.
2.) What is the distance from the well to the septic? Currently, the well should be 50ft from the septic tank (if there is one) and a total of at least 100ft from the absorption area. However, FHA may allow the absorption field to be not less than 75ft from the well if it is considered legal and normal in your area (The lender and appraiser have to do some extra work to prove that). Go to the HUD website to see the requirements and read "Mortgagee Letter 2005-48". Talk to local lenders about the situation. A link to the website is attached.
3.) If a new system is required, is your lot big enough to accomodate it under the current guidelines? If the answer is yes, your local "Sewage Enforcement Officer" will have to do a "Perc" test to determine what kind of system is possible on your site.
After you have this information you and your Agent will be able to decide the best way to market your property. Best of luck to you! I hope it works out well for you.