Financial Assistance Branch: Septic Rehabilitation Loans
The Septic Rehabilitation Loan Program provides a source of low interest financing for repairing or replacing failing septic systems or cesspools with onsite wastewater disposal systems that will function in an environmentally sound and cost effective manner.
This program is managed by the Financial Assistance Branch with technical assistance from the Underground Discharges Branch. Eligibility is open to property owners with on-site wastewater disposal systems that need rehabilitation in order to meet regulatory requirements, that meet program income guidelines, and where the applicant demonstrates the ability to repay the loan. There is a non-refundable application fee of $15 to $16.05 per individual or married couple that covers the cost of the applicant's credit history report.
Financing is available at an interest rate of 3 or 6 percent depending on income, can be repaid over 20 years with no prepayment penalty, with a minimum loan of $1,000 and a maximum loan of $25,000 for individual systems, and a maximum loan of $250,000 for community or mobile home park systems. Eligible costs include:
- Site evaluation fees.
- Septic system design fees.
- Permit fees.
- Construction costs.
New Septic Rehabilitation Funding Option
A new Septic Extended Funding Option (SEFO) has been established for homeowners who do not qualify for the Septic Rehabilitation Loan Program. SEFO can be used when the current program cannot provide all the funds necessary to assist an applicant.
All SEFO loans are interest-free and secured by a due-on-transfer mortgage lien, that stipulates full loan repayment when the property is sold or transferred. To receive funding, loan recipients must sign a mortgage lien and loan note. No monthly payments are required and SEFO loans will be forgiven after 20 years, the useful life of the septic system.
The Manual of Program Guidelines and application forms for the Septic Rehabilitation Loan Program are available upon request.
For more information, please contact:
Division of Water Resources
Financial Assistance Branch
5 East Read Street, Suite 200
Dover, DE 19901
302-739-9941
Carla.Gibbs@state.de.us
