Help With Financing Water Well Pump Repair
If the water in your home comes from a well on the property, it’s important to keep the well pump working efficiently. But like other plumbing components, problems can occur when a well pump wears out or fails. When that happens, replacing the pump can add up to a considerable expense.
In addition to the cost of the water well pump and the contractor’s labor, depending on the type of pump you install, other parts of the well system may need replacing – a project that can run into thousands of dollars. Although it’s an expense for which you may not be prepared, if you qualify, there are low-interest government loan programs available to help you finance the cost.
Household Water Well Program
If your well requires extensive repairs, or you need to replace it, you may qualify for a government loan to help cover the cost. The U.S. Department of Agriculture (USDA) Rural Development funds the Household Water Well program, which awards grants to qualified nonprofit organizations. The nonprofits then issue loans to homeowners in eligible rural areas. Qualified homeowners can use the money to repair a well, upgrade a well pump, or construct a new well water system to ensure safe drinking water.
Eligible households that meet the annual income guidelines can borrow up to $11,000. Borrowers pay a fixed interest rate of 1 percent. A maximum loan term of 20 years also helps make the loan more affordable and easier to repay.
If you are interested in applying for a loan, contact your local Rural Development office to request more information about the Household Water Well program. You can also get the names of participating nonprofits that handle the loans.
USDA Rural Housing Repair and Rehabilitation Loans
USDA Rural Housing Repair and Rehabilitation loans are another financing option available to low-income homeowners in rural areas. This is another program funded by the federal government that provides money for water well repairs. Like the Household Water Well program, you have 20 years to repay the loan. The program is intended to help homeowners remove health and safety hazards from their homes.
To qualify for a Housing Repair loan, you must:
Own and occupy the home, which is located in an eligible rural town or area
Meet the program’s household income guidelines
Be unable to get an affordable loan rate with other lenders
You can borrow up to $20,000 at a fixed-interest rate of 1 percent. Although you can apply for a loan at any time during the year, loans are issued based on the availability of funding in your area. Contact a local well company, like All’s Well, to schedule a repair.