PENNVEST Homeowner Septic Program

The Pennsylvania Infrastructure Investment Authority (PENNVEST) has teamed with the Pennsylvania Housing Finance Agency (PHFA) and the Pennsylvania Department of Environmental Protection (DEP) to offer this special funding program. Assistance is available to eligible homeowners who need to repair or replace their individual on-lot septic system OR to connect for the first time to a public sewer system. Program highlights are summarized below.

Benefits to You

  • Receive an attractive rate for this vital home improvement.
  • No prepayment penalty if the loan is paid off early.
  • Eliminate worries about your septic system when you sell your home.
  • Improve the environmental health of your property.
  • Avoid or respond to citations from your municipality.

Loan Terms

  • Interest rate of 1.75%, as of 1/1/2016.
  • Terms up to 20 years (up to 15 years for manufactured homes).
  • Maximum loan amount is $25,000.
  • Loan origination charges apply.
  • Loans will be secured by a mortgage on the borrower's home.
  • Lien Position: the PENNVEST loan must be in first or second lien position unless the loan amount is less than $7,500 OR the existing first and second liens were originated at purchase for the purpose of buying the home. Third lien position is permitted in these circumstances.
  • Loans may be assumable by or simultaneously originated for qualified borrowers receiving a PHFA purchase money mortgage, with PHFA's pre-approval.


  • No restrictions on household income as of 1/20/2016.
  • Borrowers will be underwritten to determine ability to repay the loan.
  • Borrowers must be PA residents seeking to improve their primary residence which meets program requirements.
  • Project Location: for on-lot septic repair, all areas of PA are eligible unless a public wastewater collection and treatment system is either in place or will be constructed in the next five years. For first-time sewer connections, any area of PA is eligible.
  • Allowable Project Types: rehabilitation, improvement, repair, or replacement of an existing septic system or a first-time connection to a public sewer.
  • Financeable Project Costs: system design charges, construction fees and costs, inspection,  and permit fees, connection fees (also known as "tap-in fees"), and most loan origination fees.
  • Two unit dwellings deeded as one property are eligible unless the residence is a manufactured home, then one unit only.
  • Documentation: applicants must gather and provide for lender and PHFA review, all income and credit information, applicable permits, project specifications, connection fees for sewer connections, or, if you are replacing or repairing an on-lot septic system, verification from your local municipality that a wastewater disposal system neither exists nor is planned in the next five years. Additional information supporting the loan application may also be requested.

How to Apply

Contact a PENNVEST Participating Lenders (Complete List).

For More Information: Contact your local Sewage Enforcement Officer, township or borough official, or PHFA at 1.855.827.3466 (U Are Home).