Domestic Water Source

by Paul G.
(Florence, OR )

I was told by Bank of America that water may NOT come from a lake, it must be from a municipal source or a well!! Everyone in and around Florence Oregon uses lake water, whats the deal, we live on a 880 acre lake spring fed, 65 ft. visibility and they turned us down because of it.

=====ANSWER=====

Hello there Paul,

I really appreciate you stopping by my website and leaving a question. Hopefully you find this to be a good source of FREE information.

I'm not quite clear on your question. If you already own the home and are looking to refinance then I cannot understand the problem. Why not look at your previous lender instead of Bank of America?

However, if you are looking at buying the home and Bank of America is the lender you applied with for a mortgage, then perhaps I have a few suggestions.

First I would ask the underwriter for an exception. With a little bit of research, they would find this is the normal source for water in the region. Sometimes large national banks have blanket policies and they just need some justification for making the exception.

Secondly, the more obvious way would be to look for another lender. The real estate agent or loan officer should be able to help you.

I know that when I was doing mortgages, I was able to get exceptions on unusual types of deals like a shared well where two houses were using the same water source. It was kind of grandfathered in.

Normally when underwriters have a clear picture and the deal makes sense (like in your case everyone living in the area uses the lake water) they will allow the exception. This should work on a refinance as well.

I hope this makes sense and you find it helpful.

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Kind Regards,

Jeff Ragan