Septic tanks are a necessity if your home isn’t connected to the local sewer plant. But the costs of buying, installing or repairing one can easily set you back several thousand dollars. Luckily, there are many financing options for keeping this essential piece of equipment in top shape.
7 ways to finance septic tank costs
Installing or repairing a septic tank is one of the easiest home improvements to fund, thanks to several government options. Consider starting with the following options when looking for septic tank financing.
1. Federally-funded septic tank financing
Several federal departments offer grants and loan-assistance programs to help fund your septic system needs.
Department
Program
Description
Environmental Protection Agency (EPA)
Clean Water State Revolving Fund (CWSRF)
Provides grants to state governments to be used for low-interest loans to help install, upgrade or maintain septic systems.
US Department of Agriculture (USDA)
Rural Home Loans Program
Low-income homeowners can get loan assistance for home repairs and renovations, including septic system needs.
Single Family Housing Repair Loans and Grants Program
Offers general-use home repair loans and grants to low-income households. Loans are capped at $20,000 with interest rates fixed at 1%. Grants can reach as high as $7,500.
Rural Decentralized Water Systems Grant Program
Works with nonprofits that provide revolving 20-year loans with 1% interest rates designed to work on water and septic systems. Loans max out at $15,000 per household.
US Department of Housing and Urban Development (HUD)
Community development block grants
Homeowners can apply for a HUD block grant through their state to repair, install or improve their residential septic system.
Department
Program
Description
Environmental Protection Agency (EPA)
Clean Water State Revolving Fund (CWSRF)
Provides grants to state governments to be used for low-interest loans to help install, upgrade or maintain septic systems.
US Department of Agriculture (USDA)
Rural Home Loans Program
Low-income homeowners can get loan assistance for home repairs and renovations, including septic system needs.
US Department of Agriculture (USDA)
Single Family Housing Repair Loans and Grants Program
Offers general-use home repair loans and grants to low-income households. Loans are capped at $20,000 with interest rates fixed at 1%. Grants can reach as high as $7,500.
US Department of Agriculture (USDA)
Rural Decentralized Water Systems Grant Program
Works with nonprofits that provide revolving 20-year loans with 1% interest rates designed to work on water and septic systems. Loans max out at $15,000 per household.
US Department of Housing and Urban Development (HUD)
Community development block grants
Homeowners can apply for a HUD block grant through their state to repair, install or improve their residential septic system.
2. State-funded septic tank financing
All 50 states and Puerto Rico have programs through state agencies that offer low-income residents affordable loans and grants to replace or repair a septic tank. Typically, these are funded by the federal programs listed above, but some additional local programs exist. If you live in a rural area in particular, consider contacting your local government first to find out what options are available.
You can find a list of state-specific funding programs on the EPA website or contact your state’s community assistance or water resources offices. States with notable programs include:
New York. Residents of some areas of New York state might be eligible for grants of up to $10,000 for replacing or repairing a septic tank from the Department of Environmental Conservation and Department of Health.
Arizona, California, New Mexico and Texas. The USDA offers grants of up to $4,000 to individuals who live in a designated colonia.
Florida. The Individual Household Well & Septic Loan Program offers loans for up to $15,000 to citizens in rural communities with a 1% interest rate to pay for a new septic system.
3. State tax credits
Some states offer tax credits or deductions for repairing or buying a new septic tank. For example, Massachusetts allows its residents to get a tax refund for up to 40% of the cost of the tank. You won’t have to pay it back, though you might want to hire a tax expert to make sure you declare it correctly. You also need to provide the money up front, which isn’t helpful if you don’t have that kind of cash on hand.
4. Septic tank loans
Some non-profit lenders offer low-interest loans for replacing or repairing a septic tank. For example, Craft3 in the Pacific Northwest offers APRs close to 2.5%, depending on how much you borrow and your location. Plus, its loans come with flexible repayment terms. Your home and septic tank might need to meet certain requirements to qualify.
To find a non-profit lender in your community, contact your local housing department, USDA office or Department of Environmental Conservation.
5. Home equity loans
Home equity loans and lines of credit (HELOCs) are two of the most popular ways to fund home improvements, including repairing or replacing a septic tank. Also known as a second mortgage, a home equity loan involves borrowing against the amount you own in your home for a one-time lump sum. A HELOC works more like a credit card, with a revolving line of credit you can draw on as needed.
Backing your loan or line of credit with your house can help you qualify for more competitive rates and terms than an unsecured personal loan, though you risk losing your home if you can’t pay it back.
6. Personal loans
Borrowers with strong credit might want to consider taking out a personal loan for home improvement that can be used to fund your septic tank. Personal loans typically range from $1,000 to $50,000, though some go up to $100,000 with APRs from 6% to 36% and terms from three to five years. It’s less risky than a home equity loan, since you don’t need collateral.
Some septic companies offer financing plans for their services, so you don’t have to pay it off all at once — many through third-party lenders like GreenSky. Others offer a combination of loans and same-as-cash financing.
Same-as-cash financing often gives you three to six months to pay your bill without paying interest. If you can’t pay it off during that time, you might have to pay interest that’s higher than the rates you’d get with a loan — similar to a credit card with a 0% promotional rate.
In addition, some septic companies have coupons on their website that offer service discounts. You can typically use these in addition to financing to lower your cost even more.
Compare septic tank financing
Finding the right lender for your septic tank project requires shopping around to make sure you get the best loan. You can start by comparing these personal loan lenders. Select Go to site to enter your financial information for a personalized offer, or select More info to read our review.
As a central home system, costs can vary based on several factors, including:
The size of your house
The size of your property
The type of system you choose
The type of soil on your property
The equipment you purchase
Your location and the company you hire
Keeping all that in mind, here are some average costs to expect.
Installing a septic tank
Installing a new septic tank typically costs between $3,300 and $10,600 for a standard anaerobic system, according to customers on HomeAdvisor. This generally includes the following expenses:
Septic tank. A standard anaerobic system typically sets you back between $2,000 and $5,000 per installation. But alternative aerobic systems can run from $10,000 to $20,000.
Installation. Installation costs include renting a backhoe to dig the hole for the tank as well as hiring someone to put in the tank and plumbing. This can run from $1,200 to $4,500.
Permits. Typically septic tank permits can set you back around $1,000, though it depends on where you live.
Maintaining a septic tank
A well-maintained septic tank can last you 50 years or more. Fortunately, maintaining your septic tank is the least expensive of your system’s costs and includes:
Service
Cost
Recommended schedule
Details
Inspection
$100 to $900
1-3 years
Can be as simple as a visual inspection or include inserting a camera into the sewer pipes
Pumping
$250 to $895
3-5 years
Checks for leaks, pumps out the sludge to a truck, cleans the tank and inspects for damages
Maintenance
$50 to $50
per year
Includes adding bacteria to your tank and changing out any filters, depending on the type and model
Repairing a septic tank
There’s a chance that when you get your septic tank inspected, you’ll have to make repairs. This typically ranges from $600 to $2,500, according to customers on HomeAdvisor.
One of the most common repairs is replacing a broken pipe, which can cost around $1,500 and might involve digging up your driveway again. But if your septic tank has started to contaminate the area around it, you might have to move it to another location, which can set you back as much as $20,000.
Removing a septic tank
Whether your septic tank fails outright or you decide to hook into the city’s sewer system, removing your septic tank can be a major expense. Typically, you’ll pay between $5,000 and $6,000, which includes pumping the tank, the labor to remove it, backfilling the area and disposing of the old tank.
7 tips for protecting your septic tank
The better you care for your septic tank, the less often you’ll need repairs. Here are seven ways to keep it in top shape:
Use a high-efficiency showerhead. Your septic tank can only handle so much water at once before it starts to back up. A high-efficiency showerhead can help prevent that.
Have multiple laundry days. Dividing your laundry into several smaller loads can also ensure you aren’t overloading your tank with water.
Avoid your garbage disposal. Using a garbage disposal means you’ll have a lot more solid waste going into your tank, which leads to more frequent pumps.
Watch what you flush. Anything that isn’t biodegradable can clog up your drain. This includes things you might not expect, like dental floss, coffee grounds and any kind of oil or grease.
Don’t dump toxic chemicals. Your septic tank is full of organisms that help digest your waste. Keep them alive and well by avoiding chemical drain openers, grease and paints down any drains.
Inspect often. The EPA recommends having your tank pumped and inspected by a professional at least once every three years to catch any potential problems.
Maintain your drain field. This means don’t park your car, plant trees or have any other kinds of drains run off into the area around your septic tank.
Bottom line
Government-funded loans and grants are generally the least expensive way to pay for a septic tank, but they aren’t available to everyone and can take some time to process. If you’re in a pinch, a personal loan could be a better solution.
Heather Petty is a personal finance writer at Finder, specializing in home and personal loans. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing and analysis has been featured on MSN, Credit.com and MediaFeed, among other top media. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She earned a BA in English with a minor in journalism from the University of Nevada, Reno.
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