Are there grants or loans available to help me pay for the repair or replacement of my septic system or to buy a new one?

There are national financing programs available through the U.S. Department of Agriculture (USDA), & EPA as well as other agencies. They are listed below.

The Onsite Wastewater Assistance Program (OSWAP) offers low interest loans through participating lenders to homeowners for the repair or replacement of inadequate or failing septic systems.

Applicants must own an existing home (new construction is not eligible) with a septic system in an area not served by a public sewer. 

Approved systems include both a septic tank and secondary treatment system such as a leach field. 

Loan Terms:

• Terms up to 10 years
• Can fund up to 100% of actual costs
• The interest rate charged to the borrower will not exceed 3%
• Applications accepted on an ongoing basis
• Available through the lender of your choice

County Emergency Fund: All repairs may be completed at no cost or minimal contribution by the homeowner. 515-286-3356. Polk County phone number only. Please call your individual county to determine if they have an Emergency Home Repair Fund. 

The Clean Water State Revolving Fund provides financial assistance for the repair or replacement of failing decentralized systems. Each state’s CWSRF program is responsible for selecting the projects that receive assistance. You can contact the Iowa CWSRF person at 1-800-432-7230. 

Rural Home Loans Program offers loan assistance to low and very low-income applicants. The amount of assistance is determined by the adjusted family income. Funds can be used to build, repair, renovate, or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. 515-284-4663.

The Single-Family Housing Repair Loans & Grants Program offers grants and low-interest loans to repair, improve, or modernize rural single-family homes or grants to elderly very-low-income homeowners to remove health and safety hazards, including septic systems. Loans may be used on repairs and improvements and grants must be used to remove health and safety hazards. The maximum loan amount is $20,000 and the maximum grant amount is $7,500. 515-284-4663

Rural Decentralized Water Systems Grant Program offers grants to rural homeowners. Grant funds may be used to help a nonprofit create a revolving loan fund for eligible individuals who own and occupy a home in an eligible rural area. The fund may be used to construct, refurbish, or service individually-owned household water well and septic systems. Terms for the loans include one percent fixed interest rate, 20-year maximum term, and an $15,000 maximum loan per household. 515-284-4665

U.S. Department of Housing & Urban Development provides funds to states through community development block grants. The grants fund various projects, including rehabilitation of residential and nonresidential structures, construction of public facilities, and improvement of water and sewer facilities. 202-708-1455