Onsite Wastewater Assistance

Septic System Installation close up

Topics:

Water Quality

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. According to Iowa law, all septic systems, regardless of when they were installed, must have a secondary wastewater treatment system following the septic tank. 

Eligibility 

  • 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

Process

  1. Obtain a septic construction permit from county sanitarian
  2. County completes an OSWAP approval form
  3. Apply for a loan through a participating lender  
  4. Hire a septic contractor to complete the approved project

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 

Become a Participating Lender 

  1. The lender must complete the online application and send the Lender Participation Agreement for Iowa Finance Authority (IFA) and return via email to waterquality@iowafinance.com 
  2. After receiving the signed Lender Participation Agreement, IFA will activate the lender, and the lender will then have access to the online system to enter the application process

Project Application Process 

The borrower works with the County Sanitarian on the initial phases of the project. For more information on project eligibility or approval, contact Iowa Department of Natural Resources-DNR at 515.689.7941

Loan Application Process 

  1. The borrower completes the lender’s loan application process
  2. When the loan is approved by the lender, the lender completes the OSWAP online application

Loan Completion 

  1. After the project has been completed, inspected and certified by the County Sanitarian, the OSWAP approval form, permit, along with the appropriate invoices are emailed to Jane Larson 
    DNR will approve the project and loan amount online. 
  2. After DNR approves the project, IFA approves the application, and the lender receives an email that funds can now be requested
  3. The lender may request the funds online
  4. Funds are deposited in the financial institution and the borrower receives his/her loan from the lender

Annually 

  1. Approximately a week before the anniversary date of the loan, IFA will email a notice to the lender reminding them that IFA will withdraw from its deposit account an amount equal to the principal that has been repaid 
  2. The amount in the deposit account and the amount of the outstanding principal on the loan will be the same