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 Web site. 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 $17,700 for one person, $20,200 for two person, and higher for larger families. The loan limit is $24,999.

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 $96,600 or less. There are no restrictions on location in this program. There is a fixed interest rate. A qualifying homeowner may borrow up to $35,000 and 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 Web site.

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.

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. In a few counties, loans are also available to replace wells that do not comply with requirements for isolation (setback) distances after installation of subsurface sewage treatment systems (SSTS), or are contaminated because of the SSTS. The loan interest rate is 3 percent with a maximum term of ten years. Any rural landowner is eligible. There are no income limits in this program. For additional information:

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Updated Monday, 29-Aug-2011 14:35:35 CDT