Well Management
State or Federal Programs Offering Grants and Low Interest Loans for Well Construction, Repair, and Sealing

Financial assistance through low interest loans and grants is available for well construction, repair, and sealing from a variety of programs. These programs are offered through local lenders to homeowners depending on their income level and whether they live in rural or urban areas. The following is a list of loan and grant programs available for well sealing.

Rural Housing Home Improvement Loan and Grant Program

This program offers loans and grants for well construction, repair, and sealing. The Rural Development office of the U.S. Department of Agriculture administers this program. The program is for very low income families who live in a rural area or a community with a population of 25,000 or less. The family income can not exceed 50 percent of the median county income. Individuals who are 62 years of age or older may qualify for a grant or a combination of a loan and grant; younger applicants are eligible only for loans. For more information and to find the area office for a particular county, call 651-602-7800 or visit the USDA Rural Development website. To find out if your property is in an eligible area, go to the USDA Income and Property Eligibility Site and under Property Eligibility click "Single Family Housing." The counties of Anoka, Hennepin, Ramsey and Washington are all ineligible. Even if your property is in an eligible area, your eligibility is still subject to income limits.

Minnesota Housing Finance Agency Loan Programs

The Rehabilitation Loan Program:  Provides deferred loan financing to low income homeowners needing to rehabilitate their existing residential housing. The program can be used to include well sealing and well replacement where connection to a municipal water supply is not feasible. The statewide income limit is $17,300 for one person, $19,800 for two persons, and higher for larger families. The loan limit is $27,000.

The Fix-up Fund: Offers loans for well construction, repair, and sealing. The program is designed for homeowners with a gross annual household income of $96,500 or less. There are no restrictions on location in this program. There is a fixed interest rate. A qualifying homeowner may repay the loan with fixed monthly payments. The repayment term will be based on the loan amount and household budget. For a list of participating lenders and the current interest rate, visit The Fix-up Fund website.

For more information on these programs call the Minnesota Housing Finance Agency at 800-710-8871; in the Twin Cities metropolitan area, call 651-296-8215, or visit The Fix-up Fund website and click on “Home Improvement” under “Homebuyers and Homeowners.”

Agriculture Best Management Practices (AgBMP) Loan Program

Local counties and Soil and Water Conservation Districts administer this loan program offered by the Minnesota Department of Agriculture (MDA) for well replacement, well sealing, and other practices that prevent water pollution. You do not need to be a farmer to qualify. Financing to replace wells is available when wells do not comply with requirements for setback or isolation distances (such as minimum distances from septic tanks, drainfields, feedlots, fuel tanks, and pesticide preparation areas), or if the well is contaminated from human activity (such as from septic systems, petroleum products, or pesticides). Any rural landowner is eligible. There are no income limits in this program. The loan terms include a maximum of $100,000, a maximum length of ten years, and a maximum interest rate of 3 percent plus usual and customary fees.

For additional information:

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Questions?
Contact the MDH Well Management Section
651-201-4600 or 800-383-9808
health.wells@state.mn.us

Minnesota Department of Health
Updated Friday, 14-Feb-2014 11:37:32 CST