Yes, there are loans and grants for septic repair and replacement. Most of them are for rural homeowners or households with low incomes, though, and the amounts are small next to the price of a whole new system.
Eligibility rules decide almost everything. Whether you qualify depends on where you live, what you earn, and sometimes your age, so your first job is finding out which programs cover your address.
Start with a call to your county
The EPA’s advice is simple. To find local help, contact your county environmental health or public health department, or your state’s septic program if you’re not sure who covers your area. Some communities run their own assistance programs, the EPA notes, especially places with a lot of septic systems or polluted lakes and streams.
You’ll need that office anyway, because it permits the repair. Penn State Extension gives the same advice for Pennsylvania and points homeowners to their county, borough or township offices for programs that only exist locally.
The main programs at a glance
These are the main programs the EPA lists for homeowners. The terms for the USDA repair program come from USDA’s own fact sheet, and the rest come from the EPA. Conditions change, so confirm the current terms with the agency before you apply.
| Program | What it covers | Who qualifies | Limits | Where to apply |
|---|---|---|---|---|
| USDA Single Family Housing Repair Loans and Grants (Section 504) | Loans to repair or improve a home; grants to remove health and safety hazards | Owners who live in the home, in an eligible rural area, and can’t get affordable credit elsewhere; grants only for owners 62 or older with very low incomes | Loans up to $40,000 at 1% fixed for 20 years; grants up to $10,000 lifetime, or $15,000 in a presidentially declared disaster area | Your local USDA Rural Development office |
| USDA Rural Home Loans | Building, repairing or relocating a home, including water and sewage facilities | Low and very low income applicants | Set by adjusted family income | USDA Rural Development |
| USDA Rural Decentralized Water Systems Grant | Building, refurbishing or servicing a household well or septic system | People who own and live in a home in an eligible rural area | Loans up to $15,000 per household, 1% fixed, up to 20 years | A nonprofit that runs a revolving loan fund with the grant |
| SERCAP Individual Household Well & Septic Loan | Installing a new standard or alternative septic system | Residents of rural communities in DE, FL, GA, MD, NC, SC and VA | Up to $15,000 at 1% | SERCAP |
| Clean Water State Revolving Fund | Upgrade, repair or replacement of septic systems, where the state uses it this way | Eligible recipients set by each state | Low-interest loans; terms vary by state | Your state’s CWSRF program |
USDA sets these limits and can change them, so check with your local Rural Development office before you apply.
Which USDA program is for you, and which isn’t
USDA’s water and housing programs cause most of the confusion. Several have similar names, and only some of them lend to homeowners.
The housing repair program, also called Section 504, is the one for individual owners. According to USDA’s fact sheet, you must own and live in the home, live in an eligible rural area, and be unable to get affordable credit elsewhere. Loans run up to $40,000 at a 1% fixed rate over 20 years. Grants go only to owners 62 or older with very low incomes, top out at $10,000 over your lifetime ($15,000 if the home was damaged in a presidentially declared disaster area), and must be used to remove health and safety hazards. You can combine a loan and a grant. Penn State adds that income limits vary by location.
The EPA’s funding page lists septic systems among the hazards these grants can address. Still, ask your local USDA office whether your project qualifies before you count on the money.
The Water and Waste Disposal program is built for communities, not individual owners. The EPA lists its eligible applicants as public entities and nonprofit corporations in rural areas, in towns and areas of 10,000 people or fewer. It pays for projects like sewer collection and treatment.
The decentralized water systems grant reaches you through a middleman. USDA gives the grant to a nonprofit, the nonprofit runs a revolving loan fund, and you borrow from the nonprofit rather than from USDA.
The EPA’s Section 319 grants work the same indirect way. Homeowners can’t apply for them. The money goes to states and watershed groups, and only some of them spend it on septic work.
Where to look for a septic system loan in your state
Many of the programs that reach homeowners are run by states. The EPA keeps a state-by-state list, and a few entries show how much they differ.
- Pennsylvania has PENNVEST low-interest loans for repair, replacement or connecting to public sewer. Penn State noted that the program had no income limits as of January 2016.
- Michigan runs a Septic Replacement Loan Program with an income-based tier and a market-based tier. It can cover evaluation, pumping, design, permitting and installation.
- Massachusetts has three programs for owners, according to the EPA: the Community Septic Management Program, the Homeowner Septic Loan Program, and a tax credit program.
- Wisconsin offers grants through the Wisconsin Fund to homeowners and small businesses with failing systems.
- Florida’s wastewater grant program goes to governmental entities, not to individual owners.
Some state programs lend to you directly. Others fund your county or town, which then runs its own program. Your county health department will know which kind you have.
When financing becomes the question
Most people start looking for money after something has gone wrong. A failed inspection during a sale or signs of drain field failure can turn a maintenance budget into a replacement budget overnight.
Before you apply for anything, find out how big the job really is. Some drain field problems can be fixed without a full replacement, and a repair may be small enough to pay for without a loan. A full replacement is another matter. What a new septic system costs and drain field replacement costs show the range, and the type of system your site needs moves the price more than anything else.
That’s where the limits in the table start to pinch. A $10,000 grant or a $15,000 loan may cover a repair comfortably and still fall short of an engineered replacement. Ask each program whether you can combine its money with other sources.
If you’re buying a house with a septic problem, financing isn’t your only option. Buying a house with a septic system covers the others, like a lower price or a repair before closing.
What this page doesn’t cover
This page lists public programs and their published terms. It isn’t financial advice, and it doesn’t recommend any lender or loan product.
Some contractors offer their own payment plans, and some owners ask whether insurance will pay. None of the sources here covers either one. Get any contractor financing terms in writing and compare them with what the public programs offer.
Common questions
Can I get a loan for a septic system?
Yes, if you meet a program’s rules. The USDA repair program and the decentralized water systems loans are for rural homeowners, SERCAP lends in seven Southeast and Mid-Atlantic states, and many states run their own loan funds. Your county health department is the place to start.
How do I pay for a new septic system with no money?
Look at grants first. USDA’s repair grants are for owners 62 or older with very low incomes, and some states and counties offer grants of their own. Low-interest loans with long terms are the other main route.
What grants are available from USDA for septic systems?
For individuals, the main one is the Section 504 repair grant for rural owners 62 or older with very low incomes. USDA’s fact sheet puts it at up to $10,000 over your lifetime, or $15,000 in a presidentially declared disaster area. Ask your local USDA office whether your septic project qualifies. USDA’s Water and Waste Disposal program serves public entities and nonprofits, not individual owners.
Can you do a payment plan for a septic tank?
Some contractors may offer one, but none of the sources here covers contractor financing. Ask for the terms in writing and compare the total cost with a public loan program.
Sources
- USDA Rural Development, Single Family Housing Repair Loans and Grants fact sheet
- US EPA, Funding for Septic Systems
- US EPA, USDA Water Grants and Loans Available to Water and Wastewater Utilities
- Penn State Extension, Funding for Private Well and Septic System Repairs