Septic Loans

NE PA is an approved lender for the PENNVEST Homeowner On-Lot Sewage Disposal and Lateral Repair Loans program. The Pennsylvania Infrastructure Investment Authority (PENNVEST) has partnered with the Pennsylvania Housing Finance Agency (PHFA) and the Pennsylvania Department of Environmental Protection (DEP) to offer this special funding program. Assistance is available to eligible homeowners who need to repair or replace their individual on-lot septic system or connect, for the first time, to a public sewer system. Program highlights are summarized below.

 

+ Benefits to You

  • Receive an attractive rate for this vital home improvement.
  • No prepayment penalty if the loan is paid off early.
  • Eliminate worries about your septic system when you sell your home.
  • Improve the environmental health of your property.

  • Avoid or respond to citations from your municipality.

 

+ Loan Terms

  • Interest rate of 1.75% APR.
  • Terms up to 20 years (up to 15 years for manufactured homes).
  • Maximum loan amount is $25,000.
  • Loan origination charges apply.
  • Loans will be secured by a mortgage on the borrower's home.
  • Lien Position: the PENNVEST loan must be in first or second lien position unless the loan amount is less than $7,500 OR the existing first and second liens were originated at purchase for the purpose of buying the home. Third lien position is permitted in these circumstances.

 

+ Eligibility

  • No restrictions on household income.
  • Borrowers will be underwritten to determine ability to repay the loan.
  • Borrowers must be PA residents seeking to improve their primary residence which meets program requirements.
  • Project Location: for on-lot septic repair, all areas of PA are eligible unless a public wastewater collection and treatment system is either in place or will be constructed in the next five years. For sewer connections, any area of PA is eligible.
  • Financeable Project Costs: system design charges, construction fees and costs, inspection,  and permit fees, connection fees (also known as "tap-in fees"), and most loan origination fees.
  • Two unit dwellings deeded as one property are eligible unless the residence is a manufactured home, then one unit only.

  • Documentation: applicants must gather and provide for lender and PHFA review, all income and credit information, applicable permits, project specifications, connection fees for sewer connections, or, if you are replacing or repairing an on-lot septic system, verification from your local municipality that a wastewater disposal system neither exists nor is planned in the next five years. Additional information supporting the loan application may also be requested.

  • Loans usually take 30-45 days to close. However, loan closings may be delayed, potentially significantly, by slow responses from applicants and contractors, and higher-than-expected application volume.

  • Other eligibility requirements apply. Please call PHFA at 855.827.3466 to ask questions about your specific situation.

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