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PENNVEST Homeowner On-Lot Sewage Disposal and Lateral Repair Loans

PENNVEST, in cooperation with the Pennsylvania Housing Finance Agency, provides low-cost financing to improve, replace, or repair individual on-lot sewage disposal systems or to connect, for the first time, to public sewer in order to meet public health and environmental safety standards.


  • All homeowners of the Commonwealth who meet the program criteria. Detailed eligibility requirements can be   obtained by contacting the Pennsylvania Housing Finance Agency or one of the participating program lenders. See   contact information below. 
  • All privately-owned primary residences are eligible unless a community waste water collection and treatment system is either currently in place, or planned for construction within the next five years.


Eligible Uses

  • Rehabilitation, improvement, repair or replacement of an existing on-lot system or sewer lateral located from the house to the main line on a single family, owner-occupied property which is the primary residence of the owner. 
  • Project costs may include design costs, construction fees and costs, permit fees and most loan origination fees.
  • First-time hook-ups to community wastewater collection and treatment systems. 

Ineligible Uses

  • Project construction costs incurred before loan approval are not eligible; construction MAY NOT begin prior to receiving loan approval.


  • Loans up to a maximum of $25,000. 
  • Loans have an interest rate of 1.75%.  

Terms and Conditions

  • Loans must be secured by a mortgage lien on the borrower's home.  
  • The maximum term is up to twenty years; loan repayment commences within sixty days of loan closing.  
  • Loan must be immediately repaid if the property on which the project is located is either sold or transferred.  
  • Loan origination and servicing fees are charged.  
  • On-lot  systems have to be kept in good repair and regularly pumped to ensure that  the systems do not malfunction and fail to adequately treat wastewater or cause a public health hazard. A pumping freqeuncy schedule and reporting requirments will be included in the loan agreement.   


How to Apply

Contact a participating local lender to see if you qualify for credit approval of a loan. See the Pennsylvania Housing Finance Agency Participating Lender List below, or call PHFA at 1-855-827-3466 for a current listing.

     Lender List

For Additional Assistance Call

Pennsylvania Housing Finance Authority at 1-855-827-3466.

Informational Brochure

To view the informational brochure in both English and Spanish, select the link below.

PENNVEST Homeowner Septic Program Brochure (pdf)