Grants and Loans for Home Water Treatment and Well Construction, Repair, and Sealing

Some federal and state programs provide grants (which you do not have to pay back) and low interest loans (which you pay back) to help pay for home water treatment and well construction, repair, and sealing. Your household may be eligible for one of these programs based on income, age, and whether you live in a rural area. The table below shows which type of grant or loan can be used for what types of activities. The rest of this webpage provides more information about the grant or loan program.

For information regarding loans and grants that are available for public water systems, visit Source Water Protection Grants or email health.drinkingwater@state.mn.us.

Single family housing repair loans and grants

This program offers loans and grants for home water treatment and well construction, repair, and sealing. This program is for very low income families who live in a rural area or a community with a population of 25,000 people or less. The family income cannot 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. 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. The Rural Development office of the U.S. Department of Agriculture administers this program.

For more information, visit Single Family Housing Repair Loans and Grants or call 651-602-7800.

Rehabilitation Loan/Emergency and Accessibility Loan Program

This program offers loans to low income homeowners to help finance basic home improvements, including well construction, repair, and sealing.  Loans for well construction, repair, and sealing are limited to households that meet the income requirement and where connection to a municipal water supply is not feasible. The statewide income limit is $24,700 for one person, $28,200 for two people, and higher for larger families. The Minnesota Housing Finance Agency Loan Programs administers this program.

For more information, visit Rehabilitation Loan/Emergency and Accessibility Loan Program or call 800-710-8871 or 651-296-8215.

Fix Up Program

This program offers loans for home water treatment and well construction, repair, and sealing. The program is designed for homeowners with an annual household income of $155,500 to $175,400 or less depending on the county. This program does not have any location restrictions. 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 their website. The Minnesota Housing Finance Agency Loan Programs administers this program.

For more information, visit Fix Up Program or call 800-710-8871 or 651-296-8215.

Agriculture Best Management Practices (AgBMP) Loan Program

Loans from this program can be used for home water treatment, replacing a well, connecting to public water, sealing a well, and other practices that prevent water pollution. You do not need to be a farmer to qualify. Financing is available for existing privately owned wells that provide drinking water for people or livestock. Irrigation and other commercial wells are not eligible. There are no income limits in this program. The loan terms include a maximum of $200,000, a maximum length of ten years, and a maximum interest rate of 3 percent plus usual and customary fees. Local counties and Soil and Water Conservation Districts administer this loan program offered by the Minnesota Department of Agriculture (MDA).

For more information:

• Borrower Information for the AgBMP Loan Program
• Find AgBMP Loan County Contacts and Lenders
• Call the MDA AgBMP Loan Program at 651-201-6618

Of Interest

Well Sealing Financial Assistance

Questions

Well Management Section
651-201-4600 or 800-383-9808
health.wells@state.mn.us

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