Home Equity and Title V (refinance, credit, home equity loan)

[Cloudship]

I would like to take out a home equity loan to make some home improvements. Right now, it is on a septic system. It works, but I don't think it is going to pass Title V inspection. The system itself is over 40 years old, and has to be pumped regularly. WE have sewer running on the street now (put in about 10 years ago), but the house is not connected yet. While I would like to connect, they just repaved the road last year, and the town will not allow digging up the road for 5 years after that, so connecting is out of the question.

My question is: will the bank require a title V inspection to obtain a home equity loan?

[gf2020]

It probably depends on the bank, but mine did not.

[KellyCrash]

Title V is only required when you sell a house not when you refinance or take out a home equity line of credit.

[MikePRU]

This is from the state's website:

When a septic system must be inspected

• Within two years of selling the property. If weather conditions prevent inspection at the time of a sale, the inspection must be done within six months after the sale.
• When there is a proposed change in use or expansion of the facility which requires a building or occupancy permit. This does not mean an inspection is required every time a building permit is needed - only when the use of the facility is changed (e.g., from residential to commercial) or when a facility is expanded (e.g., when a bedroom is added, the square footage of an office building is expanded, or seats are added to a restaurant).
• Any change in the footprint of a building also requires an inspection to determine the location of the system to ensure that new building construction will not take place on top of any system components or on the reserve area of the system. If official records are available to determine the location of the system components, the physical inspection is waived.
• For large systems with a design flow of 10,000 to 15,000 gallons per day or more at full build-out, on the basin schedule shown in 310 CMR 15.301(6), and every five years thereafter;
• Every three years for shared systems;
• When the property is divided or ownership of two or more properties is combined;
• When MassDEP or the local Board of Health orders an inspection.

[Cloudship]

OK, thanks everyone!

[495neighbor]

You should have no problem getting an equity loan for a project like that. That is what an equity loan is for improvement and future better resale of a property.