A New Hampshire real estate licensee is advising a first-time buyer who plans to purchase a home using an FHA loan. The property has a private well. The buyer asks whether a water quality test is required. Which response is most accurate?
Correct Answer
B) A water quality test is required by FHA guidelines for properties served by private wells to ensure the water is safe and potable
FHA loan guidelines require water quality testing for properties served by private wells to ensure the water meets safety and potability standards. In New Hampshire, where a large proportion of properties — particularly in rural areas — rely on private wells, this is a common financing requirement that agents must communicate to buyers. The test must typically show the water is free from harmful bacteria, nitrates, and other contaminants.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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