It’s an announcement we’ve waited over two years to hear but, yes! VA will now guaranty loans on homes with water catchment tanks in Lava Zone 2 and above! It was a real blow when it was taken away in late 2011. With some lobbying work by our politicians, including Representative Tulsi Gabbard, VA has reversed its policy and is on board again!
Please check out the link below to the news article. Also, review within the text of the article a link to the new VA guidelines for water catchment tanks. There are changes to the old policy…water testing is involved…so please go over the guidelines to see the requirements.
Keep in mind though…VA has changed their guidelines but that does not necessarily mean that the lenders will. We have forwarded this announcement to our lender partners so that they can, hopefully, review it and make the necessary changes to their guidelines that will allow us to start funding these home loans!
http://bigislandnow.com/2014/02/19/va-reverses-policy-loans-for-homes-on-catchment-ok/
