I have to agree with my colleagues below, however, Linda hit the nail on the head. You need to speak directly with the bank in regards to it, as some banks wont allow and some banks will. They will be able to advise as to how they will or will not handle and that will get you pointed in the right direction.
John. Usually a bank or mortgage company does not have an issue with betterments of sewer/ water from most towns. Buyer would need to get all information from the town's public records and provide to mortgage officer. Linda Buckley. Coldwell banker