Is a Cistern an Acceptable Water Supply for HUD Financing?
CISTERNS:HUD Handbook 4150.2 Section 3-6 indicates that properties served by cisterns are not acceptable for mortgage insurance. However, the HOCs have the authority to consider waivers in areas where cisterns are typical. Our photo (above left) shows a hybrid system: this outdoor cistern is filled by pumping from an open casing in a drilled well that was inserted in the bottom of a dug well that went “dry” (photo, above right). As will be apparent to readers, both the open top of this cistern and the open casing in the bottom of the dug well are sources of water contamination. See CISTERNS for more information about this water source. Is Water Purification Equipment Required by or Acceptable to HUD for HUD Financing? Individual Residential Water Purification Equipment – If a property is otherwise eligible for insurance but does not have access to a continuing supply of safe and potable water without the use of a water purification system, the requirements in Mortgagee Letter 1992-18 m
