Short answer
Yes. On July 27, 2026 (FHA INFO 2026-17), FHA announced a broad waiver of its own well distance requirements for existing homes. A home with a private well can now meet FHA's rules if it meets the local jurisdiction's distance requirements and the lender documents acceptable water test results. The waiver doesn't apply to new construction, and it stays in place until HUD updates its handbook.
What was the problem before?
FHA has its own minimum distances between a private well and things like a septic tank, leach field or property line. Many older New Hampshire homes were built and approved under local rules that don't match FHA's numbers exactly. That could stop an FHA loan, or require a case-by-case waiver, on a home the town had approved years ago.
What does the waiver allow?
For existing homes, the well can meet the distance requirements of the local jurisdiction, meaning the health authority, environmental agency or town that inspected, permitted or grandfathered the water system as it is. The lender also has to document acceptable water test results. If both are met, FHA's own distance rules don't block the loan.
What does this mean for New Hampshire buyers?
Private wells are common in Litchfield, Hollis, Amherst, Weare, Pelham and many other towns, so this can make FHA a real option on more of those homes. Water testing still matters: FHA, VA and many lenders want a test, and New Hampshire wells can have naturally occurring arsenic, radon and other contaminants. See the well and septic guide and radon and arsenic testing.
Does this apply to a new home?
No. New construction still follows FHA's separate minimum property standards for new homes. If you're buying or building new, see buying from a builder and construction loans.
Sources
- HUD, FHA INFO messages (FHA INFO 2026-17, July 27, 2026)
- HUD, Single Family Housing Policy Handbook 4000.1
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.