The FHA 203k loan can be used to fix the septic and any other repairs that may be needed.
Here is how it works. The lender will lend 96.5% of the purchase price plus the cost of all the repairs.
As part of the mortgage application we submit a contractors estimate to fix the problem along with his insurance and references. The bank will lend the money for the purchase and hold back the funds for the septic. They will then agree to a draw schedule on how the funds to fix the septic are to be disbursed.
I have provided a link to our company presentation on 203k loans. If interested be sure to call and ask for me.
215 674 9059