Can a home without a water catchment system in the Puna area be financed? Which lenders will provide financing? Thanks for sharing!

Asked by No Name, 555, MA Sun Mar 18, 2012

Property is a foreclosure and the Water tank and pump were removed from the property. Will we need to have system installed for the buyer to get financing? Any info?

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Bill Parecki, Agent, Hilo, HI
Mon Mar 19, 2012
Aloha,

The lender is going to require the property to have water. If home is on catchment then you will have to replace the water tank and pump and this will have to be done prior to close. This is something that you can ask the seller to pay for. All lender are going to require this (working water system). At this time VA loans are not financing on properties on catchment. Another issue in Puna is the lava zone. Something that you need to know up front. Properties in Lava Zone 1 and 2 have restrictions on what lender will finance. I have seen buyers go into escrow and start the loan process and have a mainland lender not realize till almost the close that property is in Lava zone 1 or 2 and loan fall apart. This is where it pays to have an agent who is familiar with the area. If you are not presently working with an agent give me a call and I will help you.

Aloha nui loa

Bill Parecke, RS, ABR, RDCPro, SFR, E-Pro, CFA
808-345-8818
HawaiianIslandHomes@gmail.com
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