Loan Programs for Home Improvements & Repairs

PENNVEST Homeowner Septic Program

The Pennsylvania Infrastructure Investment Authority (PENNVEST) has teamed 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 make a first-time connection to a public sewer system from an existing home. 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 sewage 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%, up to 2.8% 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 these two liens were simultaneously originated to purchase the home, and neither is a home equity loan or a home equity line of credit.
Flood Zones: Homes located in A or V flood zones are not eligible. If only the yard is in an A or V flood zone OR the sewage management system is or will be in an A or V flood zone, NFIP flood insurance for the life of the loan is required.
New Construction: Homes being built, recently built, being brought to a property for installation, or recently sited are not eligible for a loan.
All loans are subject to credit approval and eligibility restrictions including loan use and owner occupancy. The APR is fixed for the term of the loan. Borrowers pay origination and closing charges. Sample finance charges for a $25,000 loan with a twenty year term and 240 payments is $5,727.

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 buildings deeded as one residential 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. Do not allow work to begin at your home prior to loan closing.
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.

How to Apply

Contact a PENNVEST Participating Lenders (Complete List).

For More Information: Contact your local Sewage Enforcement Officer, township or borough official, or PHFA at 1.855.U.Are.Home (827.3466).